New Jersey’s Wage Theft Act: Six Years to Claim Unpaid Wages and Up to Triple Damages

Federal law sets a floor for wage protections, and some states build well above it. New Jersey is one of them. In August 2019, the state passed a package of changes to its wage laws that gave workers a much longer filing window, much larger damages, and stronger protection against retaliation. It is widely known as the New Jersey Wage Theft Act.

This article explains what the law changed, how it compares to a federal claim, and what a worker needs to know before filing.

What the Law Changed

The Act, Chapter 212 of the Laws of 2019, amended New Jersey’s wage payment and minimum wage statutes and added new enforcement tools. The main changes were these:

• A six-year filing window. Wage claims under the state wage and hour law can reach back six years from the date the claim is filed. Before the Act, the window for minimum wage and overtime claims was two years.
• Liquidated damages of up to 200 percent. A worker who proves unpaid wages may recover the wages owed plus liquidated damages of up to 200 percent of that amount, along with court costs and reasonable attorney’s fees.
• A presumption of retaliation. If an employer takes adverse action against a worker within 90 days after the worker files a wage complaint or claim, the law treats that as presumptive evidence of retaliation.
• Shared responsibility for staffing arrangements. A client employer and the labor contractor that supplies its workers can be held jointly and severally liable for wage violations.
• Tougher penalties. The Act raised fines, increased the penalties for repeat violations, and created a separate crime for a pattern of wage nonpayment.

Six Years Versus Two: What the Difference Can Look Like

Because wage shortages repeat every pay period, the length of the filing window can change the size of a claim more than almost anything else. The example below uses the same facts under each law.

These figures are illustrations only. They assume the same schedule for the whole period, that the violation is proven, and that the worker recovers the full amounts available. Actual results depend on the worker’s pay rate, hours, and the facts of the case. A federal claim also can reach three years for a willful violation, and the two laws can apply to the same work. The Overtime Calculator can help estimate what a particular schedule might add up to.

When the Six-Year Rule Applies

In 2024, the New Jersey Supreme Court held that the 2019 changes apply only to conduct on or after August 6, 2019, the date the law took effect. They do not reach violations that happened before that date. For a claim filed today, six years back lands well after August 2019, so the full six-year window is available for more recent violations. The ruling mainly matters for older conduct that still falls under the pre-2019 rules.

The Good-Faith Exception

The law does not make the largest damages automatic in every case. For a first violation, an employer may avoid liquidated damages only if it shows several things: the violation was an inadvertent error made in good faith, it had reasonable grounds to believe it was not breaking the law, it acknowledged the violation, and it paid the amount owed within 30 days of notice. An employer that cannot make that showing, or that does not pay promptly, may face the full range of damages.

Protection Against Retaliation

Workers often worry that speaking up will cost them their job or their hours. The Act addresses that directly. When an employer fires, demotes, cuts the hours of, or otherwise acts against a worker within 90 days after a wage complaint or claim, the law treats it as presumptive evidence of retaliation. The employer can overcome that presumption only with clear and convincing evidence that it acted for other, permissible reasons. The New Jersey Department of Labor also tells workers that retaliation for filing a complaint or taking part in an investigation is against the law. Our article on retaliation after reporting unpaid overtime covers the federal side of this issue.

Staffing Agencies and Labor Contractors

Many workers are paid by one company and directed by another. Under the Act, a client employer and the labor contractor that supplies its workers can be jointly and severally liable for wage violations, and an attempt to waive that responsibility is void. That can matter when a staffing arrangement leaves it unclear who owes the money. Our page on staffing agency workers’ rights explains more about how these arrangements work.

Criminal Penalties

The Act treats some wage violations as more than a civil matter. Knowing nonpayment or retaliation can be charged as a disorderly persons offense, with fines and possible jail time that increase for repeat violations. After repeated convictions, a pattern of wage nonpayment is a crime of the third degree. These provisions are enforced by public officials, not by individual workers, but they help explain why the law is regarded as one of the strongest in the country.

Filing With the New Jersey Department of Labor

A worker has more than one path. The New Jersey Department of Labor and Workforce Development accepts wage complaints from employees who work in New Jersey or for a New Jersey-based company. Complaints can be filed through the Department’s online portal, which it recommends, or by mail or fax. The Department says complaints can be filed anonymously, though investigations work best when it has contact information, and that it does not disclose a complainant’s identity to the employer without written permission, with limited exceptions such as a court order.

The Department asks for a description of the job, the dates and times of key events, the names of other witnesses, and supporting evidence such as pay stubs, overtime records, and messages. A worker can also bring a civil action in court, and the two routes carry different procedures and tradeoffs. Our guide to filing an unpaid wages claim and our list of pay stub red flags are good places to start gathering information.

Signs a Claim May Be Worth a Closer Look

• Overtime hours worked but paid at the regular rate, or not paid at all
• Pay stubs that show fewer hours than the worker’s own records
• A worker classified as an independent contractor who works set hours under the company’s direction
• A staffing agency and a client company each pointing to the other as the one responsible for pay
• A schedule or pay change shortly after the worker asked about unpaid wages

These are examples of facts that deserve a closer look, not conclusions about any particular workplace. Our article on 1099 misclassification explains why a contractor label does not always settle the question. To see how other states compare, read our ranking of the strongest state wage laws.

Where You Work Can Change What You Can Recover

The same underpayment can lead to very different outcomes depending on the state where the work was performed. New Jersey workers have a longer window and larger remedies than federal law alone provides, and a worker who waits can lose part of that window to the calendar. Josephson Dunlap, Lawyers for the Workers®, represents employees nationwide in wage and hour matters and offers case evaluations at no cost.