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New Jersey Issues Guidance Aiming to Clarify Remote Workers’ LAD Coverage

04 Jul



Update Applicable to:Effective date
All Employers  July 1, 2025  

What happened?

On May 14, 2024, the New Jersey Guidance on Discrimination and Out-of-State Remote Workers was issued by the New Jersey Office of the Attorney General and the Division on Civil Rights (DCR). While not legally binding, it aims to clarify how the New Jersey Law Against Discrimination (LAD) applies to all workers who are employed by New Jersey-based companies, including remote workers. 

What are the details?

“New Jersey employers must respect their employees’ rights, no matter where they live or work,” Sundeep Iyer, director of the division on civil rights, said in a statement.

Key Bites

  • The guidance clarifies how the New Jersey LAD applies to discrimination by New Jersey employers against their employees who reside and work remotely outside New Jersey.
  • The LAD prohibits employers from discriminating based on actual or perceived sexual orientation, gender, gender identity, gender expression, age, race, color, national origin, ancestry, religion, disability, and other protected characteristics.
  • The rise in remote work following the COVID-19 pandemic does not change how the LAD applies to New Jersey employers.
  • The guidance highlights that the definitions of a covered “person” under the LAD and the LAD’s substantive protections include no geographic restrictions.
  • DCR remains fully committed to enforcing the LAD and safeguarding the rights of all employees who work in-person or remotely for New Jersey employers.
  • The LAD protections cover all employees of New Jersey employers, irrespective of their location or remote work status, enabling them to seek remedies for any LAD violations.
  • The guidance does not impose any new or additional requirements that are not included in the LAD.
  • This interpretation is supported by case law precedent from both state and federal courts interpreting the reach of the LAD: The LAD is intended to be liberally construed to achieve its purpose of eliminating discrimination.
  • The LAD protections may not automatically apply to employees working for non-New Jersey companies, those working remotely in New Jersey for out-of-state employers, or commuters from New Jersey to out-of-state jobs.

Business Considerations

  • Employers should review their company’s existing policies and update them to ensure they align with the LAD’s protections, ensuring their policies cover remote workers, as the LAD’s protections apply regardless of an employee’s state of residence or whether they work remotely.
  • Employers that are out of New Jersey but have remote workers in New Jersey, should consider consulting with an attorney to audit their policies and see if the LAD applies or would apply to their situation, and to provide alternatives.

Source References

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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