The New Jersey Domestic Workers’ Bill of Rights, now in effect as of July 1, 2024, introduces sweeping changes to how domestic workers are treated under the law.

These reforms mark a turning point for more than 50,000 workers across the state. As an employment attorney in NJ, I, Ty Hyderally, want to explain what this new law means for workers, household employers, and the broader labor rights landscape.

For decades, domestic workers were excluded from basic labor laws. They were left without guaranteed rest breaks, written contracts, or legal protection. Many worked in isolation, vulnerable to underpayment and exploitation, with little recourse.

The new law changes that. Domestic workers in New Jersey now have codified rights, access to state benefits, and the ability to push back against unfair treatment. Now, this essential workforce is on equal footing when it comes to fairness and dignity.

About Ty Hyderally and Hyderally & Associates, P.C.

Ty Hyderally is the Owner and Principal of Hyderally & Associates, P.C., a respected employment law firm with offices in Montclair, New Jersey and New York City.

Recognized among the Top Ten Leaders of Employment Law in Northern New Jersey, Mr. Hyderally has successfully litigated high-profile employment cases and is admitted before multiple state and federal courts, including the U.S. Supreme Court.

His firm focuses exclusively on employment law, representing both employees and employers in matters involving discrimination, harassment, retaliation, wage disputes, and whistleblower claims.

Who Qualifies as a Domestic Worker Under the New NJ Law?

Any individual performing in-home services in New Jersey may now qualify as a domestic worker under this law. This includes people hired by a household or through an agency and applies regardless of immigration status.

Covered roles include:

• Nannies and babysitters
• Housekeepers and household managers
• In-home cooks or meal preparers
• Elder caregivers and personal attendants for individuals with disabilities

This new definition has huge legal implications. Chief amongst them is the elimination of the legal gray areas these workers previously operated in. They didn’t have formal recognition, documentation, or protections.

Because many work in private homes and are paid directly by individuals or informally through agencies, they have historically fallen outside the scope of many labor statutes.

That often made it difficult for workers to assert basic rights or seek recourse when mistreated. They were usually denied formal designation as “employees.” Without that designation, they could be denied access to workers’ compensation, unemployment benefits, or legal remedies for harassment.

The new law eliminates that ambiguity. It expressly identifies domestic workers as protected under New Jersey labor and civil rights laws, bringing much-needed structure and accountability to this segment of the workforce.

Who Is Considered an Employer Under the NJ Domestic Workers’ Bill of Rights?

The Domestic Workers’ Bill of Rights broadens the legal definition of who qualifies as an employer in domestic settings. This matters because obligations like contracts, tax registration, and insurance coverage apply only to those legally considered employers under the statute.

A private household is now considered an employer if it:

• Pays a domestic worker more than $1,000 in a calendar year (2023 or 2024)
• Directly sets or influences the worker’s schedule, wages, job duties, or time off
• Employs a worker for five or more hours per month, excluding irregular or casual jobs

Being defined as an employer gives a household more legal responsibilities than just paying their workers. They’re now responsible for creating a safe work environment, avoiding discriminatory practices, providing mandatory benefits, and respecting the worker’s civil rights.

Not meeting these standards can result in financial penalties, lawsuits, and reputational harm. That’s why it’s important for households to learn about complying with these laws.

Even when a household hires through an agency, it may still be considered a joint employer if both parties shape the terms of employment. In such cases, the household and agency share liability and must meet all legal requirements. That means either party could be held responsible for violations.

This ends confusion that often arises in shared or indirect employment arrangements. In the past, some households believed that outsourcing domestic help to an agency absolved them of legal obligations.

Under the new law, if the household plays any role in setting employment conditions, it has a legal obligation to comply. I always tell my clients to pay close attention to this when assessing their risk exposure.

What Rights Do Domestic Workers Now Have?

Under the new law, domestic workers in New Jersey are now guaranteed a set of baseline protections that were previously unavailable or inconsistently applied. These rights aim to create safer, more equitable workplaces while giving workers formal mechanisms to protect themselves from abuse or exploitation.

Key rights include:

• Rest and privacy: Workers are entitled to regular breaks and the ability to maintain personal privacy during their shifts.
• Anti-discrimination and harassment protection: Domestic workers are now explicitly protected under the New Jersey Law Against Discrimination, regardless of immigration status.
• Written contracts: If a worker is employed for five or more hours per month, the employer must provide a written contract in the worker’s preferred language outlining job responsibilities, pay, schedule, and time off.
• Access to benefits: Covered workers are eligible for workers’ compensation, unemployment insurance, temporary disability, and family leave benefits.

Formally recognized means domestic workers can now pursue legal remedies if they’re violated. If an employer fails to provide a contract, retaliates against a worker for taking a break, or engages in discriminatory behavior, the worker can file a complaint or lawsuit to enforce the law and seek damages.

This legal framework helps formalize what had before been informal, unwritten arrangements. For many domestic workers, job terms were often unclear. Changes in hours, duties, or compensation could occur without warning or cause. With written agreements and defined legal rights, these workers can hold employers accountable.

For those of us working in employment law, this shift is long overdue. It protects workers and benefits employers by setting clear expectations and minimizing disputes. A well-drafted contract and compliance with labor protections can reduce legal risk and promote a more respectful working relationship.

What Must Employers Do to Comply?

With the Domestic Workers’ Bill of Rights now in effect, employers—especially private households—must take specific steps to comply with the law. These requirements are mandatory. Failing to meet them could result in penalties, back pay awards, or legal action.

To comply, employers must:

• Get an Employer Identification Number (EIN): This is a required step for any household that paid a domestic worker more than $1,000 in 2023 or 2024, as it allows the household to legally register as an employer and file reports in accordance with new wage laws.
• Register for payroll taxes: Employers must enroll with New Jersey’s Division of Revenue to properly withhold and remit taxes for unemployment, disability, and family leave programs.
• Buy workers’ compensation insurance: This insurance is mandatory and protects both the worker and employer in case of a workplace injury, covering medical costs and lost wages.
• Provide a written contract: A written agreement is required for any domestic worker employed five or more hours per month (excluding casual work), and it must include essential terms like pay, schedule, and duties in the worker’s preferred language.

Employers who meet these criteria and fail to comply risk more than administrative consequences. They could face civil penalties, lose eligibility for certain tax benefits, or be sued for back pay and damages. It is also unlawful to retaliate against a worker who asserts their rights, which adds another layer of risk for noncompliant employers.

From a legal standpoint, taking these steps is a way to limit exposure and show good faith. In my practice, I often tell household employers to treat these obligations just as seriously as a business would.

Doing that entails keeping accurate records, using clear contracts, and staying informed about changes to the law. The costs of noncompliance can far outweigh the effort it takes to get things right from the start.

Why Was This Law Needed?

For decades, domestic workers have been systematically excluded from key labor protections at both the state and federal levels.

Many were not recognized as employees and denied basic rights because of that. Domestic employees had no guaranteed recourse if they were underpaid, overworked, or mistreated.

Employers were not required to provide contracts, maintain payroll records, or contribute to unemployment or disability programs.

Workers could be fired without notice, denied rest breaks, and subjected to degrading treatment with little hope of legal remedy. These conditions disproportionately harmed women, who make up the majority of the domestic workforce in New Jersey.

The Domestic Workers’ Bill of Rights changes that. By clearly defining domestic workers as employees and outlining specific rights, the law brings these workers into the formal labor system.

They now have access to state programs like workers’ compensation and paid family leave, and they are protected by New Jersey’s Law Against Discrimination. Employers are required to provide written contracts, and workers have the right to breaks, privacy, and fair treatment on the job.

This shift signals a broader cultural change. For the first time, New Jersey law acknowledges the essential nature of domestic work by holding private households to the same standards as other employers.

As someone who has worked with clients on both sides of these disputes, I can say that this law provides clarity, structure, and accountability where very little existed before.

How Can Domestic Workers Enforce Their Rights?

With formal protections now in place, domestic workers in New Jersey have clear avenues to assert their rights when violations occur. Whether the issue involves unpaid wages, lack of a written contract, harassment, or unsafe conditions, workers no longer have to suffer in silence.

If a worker believes their rights under the Domestic Workers’ Bill of Rights have been violated, they can take the following actions:

• File a wage or labor complaint with the New Jersey Department of Labor (NJDOL) about issues such as lack of breaks, underpayment, or contract violations.
• Report discrimination or harassment to the New Jersey Division on Civil Rights (DCR), especially if the mistreatment is based on race, sex, age, disability, or immigration status.
• Seek legal representation from an employment attorney to pursue back pay, damages, or other remedies through the civil court system.

These rights are available regardless of immigration status, and retaliation by an employer is illegal. Workers who speak up are legally protected from being fired, threatened, or otherwise punished for doing so.

In my own practice, I’ve seen that having a clearly defined legal process can be transformative. It empowers workers to come forward, gather evidence, and hold employers accountable. It also encourages employers to operate responsibly, knowing that violations carry real consequences.

When workers know they have rights, and the specific steps they can take to enforce them, they’re far more likely to speak up.

This shift gives workers the confidence to challenge mistreatment and demand fair treatment. Unfair treatment or dismissal after reporting could be an example of retaliation. Legal protections are most meaningful when they’re accessible, and this law helps make that a reality.

What Are the Responsibilities of Agencies?

Agencies that place domestic workers in private households are not exempt from the requirements of the Domestic Workers’ Bill of Rights. In fact, when an agency shares control over the terms of employment, it may be considered a joint employer along with the household.

In a joint employment arrangement, both the agency and the household are jointly and severally liable for any violations of the law. That means a domestic worker could pursue either or both parties for unpaid wages, lack of a written contract, discrimination/reverse discrimination, or other forms of mistreatment.

For agencies, this expands the scope of compliance significantly. They must match workers with households and ensure that employment terms meet all legal requirements. This includes verifying that a valid written contract is in place, that payroll taxes are properly handled, and that workers are informed of their rights.

In my experience, agencies that take an active role in setting or enforcing workplace conditions need to treat themselves as full employers. That means maintaining detailed records, offering training to household clients, and consulting legal counsel when in doubt.

Failing to do so puts both the agency and the worker at risk. That can lead to serious legal and financial consequences.

A New Chapter for Domestic Worker Protections in New Jersey

The Domestic Workers’ Bill of Rights marks a turning point in New Jersey labor law. By extending long-overdue protections to a historically excluded group, the state has acknowledged the value of domestic labor and taken concrete steps to prevent abuse and exploitation.

Workers now have the right to written contracts, access to state benefits, legal recourse for discrimination, and a path to safer, more stable employment.

For household employers and agencies, the law introduces new responsibilities and new clarity. Understanding and complying with these rules helps prevent disputes and strengthens the working relationship. The legal standards now in place create a fairer system for everyone involved.

As an employment attorney, I’ve seen firsthand the harm that can result from informality, employee/independent contractor misclassification, and lack of accountability in domestic work arrangements. This new law gives workers the tools to protect themselves. It also gives employers a framework to do things the right way.

Whether you’re a worker or an employer, now is the time to review your obligations and assert your rights under New Jersey law.