EnformHR warns New Jersey employers on new compliance costs

EnformHR is urging New Jersey employers to keep open jobs posted, tighten job requirements and review layoffs, worker classifications and internal promotion rules as state employment conditions soften. The guidance comes ahead of new state worker classification rules taking effect Oct. 1 and as employers face added legal and budget pressure from New Jersey-specific labor laws.

Why it matters: - New Jersey employers face tighter hiring, layoff and classification rules at the same time labor market conditions are weakening. - A misstep can add notice requirements, severance costs and compliance risk. - Employers that pause hiring or move too quickly on staff reductions can lose time, budget flexibility and candidate access.

What happened: - EnformHR, a Holmdel-based human resources consulting firm, outlined cost-cutting compliance strategies for New Jersey employers. - The firm urged employers to keep open requisitions live and narrow job postings to essential skills. - Cristina Amyot, EnformHR president and CEO, said slower markets increase screening work and create a short window to hire displaced workers. - The company said New Jersey employers should review layoffs, employee-to-contractor moves and internal promotion postings with legal counsel. - EnformHR said the guidance is especially relevant as the state employment report is due Thursday.

The details: - EnformHR said resume submissions among its clients are up about 30% since the start of the year. - The firm said only a fraction of applicants meet basic job requirements, which wastes screening time. - New Jersey is down 19,600 nonfarm jobs year-over-year. - Private education and health services added 26,400 jobs over that period. - Leisure and hospitality lost 12,800 jobs, and professional and business services lost 7,000 jobs. - The New Jersey Department of Labor and Workforce Development released July preliminary estimates showing a monthly decline of 25,600 jobs. - The department said that July figure was likely overstated because of seasonal adjustments and survey response factors. - The July unemployment rate was 4.4%. - The department planned to release August estimates on Sept. 17. - Amyot said employers seeing rising turnover in growing sectors face a retention problem, while employers with steady turnover in shrinking sectors can be selective on new hires.

Between the lines: - Paused requisitions often lose their original budget and must compete again in the next planning cycle, usually at tighter numbers. - Roles with a six-month ramp-up can fall to the back of the line even though they may be the first needed when demand returns. - The state-level rules matter because New Jersey thresholds are lower or broader than federal counterparts, increasing the number of employers that may be covered. - Amyot said some compliance problems start when business decisions move faster than legal timelines allow.

What's next: - New Jersey's new worker classification regulations take effect Oct. 1, 2026. - Employers using contractor conversions should revisit whether the work fits the state's ABC test, especially the prong covering work outside the employer's usual course of business. - Employers should review layoffs under the New Jersey WARN Act, including aggregation rules, notice timing and severance exposure. - Employers should review postings for new positions, transfers and promotions under the New Jersey Pay and Benefit Transparency Act. - EnformHR said it offers headcount census reviews, job posting audits and worker classification reviews. - The firm said it also works with client legal counsel on compliance matters. - More information is available at the company's website.

The bottom line: - New Jersey employers that want to cut costs without creating compliance problems need to plan layoffs, postings and worker classifications together, not one at a time.