Q. Are employers required to pay benefits (vacation, sick, severance, holiday pay or any type of benefits)?
A. No. Fringe benefits are not required by New Jersey State law. If the employer chooses to provide these benefits, then must be administered uniformly in accordance with the established policy, employment agreement or union contract. An individual may have a basis for a claim if the employer fails to adhere to the policy, agreement or contract.
Q. If I am hired with medical benefits, is my employer allowed to stop this benefit?
A. Yes. An employer may discontinue medical benefits however, the employer is required to give notice if the medical benefits are being discontinued or the medical benefits are changing. If the medical benefits are being discontinued, the employer must provide 30 days advance notice in writing. If the medical benefit plan is changing the employer must notify the employees in writing immediately as soon as the employer is notified by the health insurer.
Q. If I have medical benefits and my employment ends, do the benefits continue?
A. Benefits may or may not end immediately, depending upon the employer's policy and the health insurer. It is not a violation of the law for benefit coverage to cease immediately. However, you may be eligible to COBRA benefits which are not regulated or under the jurisdiction of the New Jersey Department of Labor and Workforce Development. For information on COBRA, visit the United States Department of Labor's website at: www.dol.gov/ebsa/faqs/faq_compliance_cobra.html
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