Question 1

Can my business be liable for bias in an AI hiring tool it didn't build?

Gordon Marzano · Accepted Answer

Yes. Under the New Jersey Law Against Discrimination, if an automated hiring or management tool produces a discriminatory impact, your business can be held responsible even when the software belongs to a third-party vendor. Employers are expected to take reasonable steps to vet these tools and document that review.

Question 2

Does the New Jersey Family Leave Act now apply to small businesses?

Gordon Marzano · Accepted Answer

Yes — as of July 17, 2026, the NJFLA covers employers with 15 or more employees (counted worldwide), down from 30, and that threshold drops further to 10 in 2027 and 5 in 2028. Employees also become eligible sooner, after just three months and 250 hours worked. If you're at or above 15 employees, you should review your handbook and leave policies now.

Question 3

What is the IRS business mileage rate for 2026?

Gordon Marzano · Accepted Answer

The IRS raised the business standard mileage rate to 76 cents per mile for July 1 through December 31, 2026, up from 72.5 cents earlier in the year. The medical and qualified moving rate is 23.5 cents, and the charitable rate remains 14 cents. Because the rate changed mid-year, employers should split their mileage records at June 30.

Question 4

Does New Jersey require employers to have an AI hiring policy?

Gordon Marzano · Accepted Answer

No statute requires the policy itself. However, the New Jersey Law Against Discrimination holds you liable for discriminatory outcomes from automated hiring tools — including tools you bought rather than built. Under the December 2025 disparate impact rules, the burden shifts to the employer to justify a screening practice with evidence. That evidence is documentation: vendor bias testing, job-relatedness, and the alternatives you considered. So while no law names the policy, the policy is how you produce the defense.

Question 5

What should an AI acceptable use policy include?

Gordon Marzano · Accepted Answer

At minimum, four things: which tools are approved, what data can never go into them, who reviews AI output before it leaves the company, and where employees go with questions. The specifics depend on your industry, your client contracts, and the data you hold. Downloaded templates usually fail on the second item — data rules only work when they're tied to your own classification scheme and your actual obligations. Keep it to one page. If a new hire can't follow it in week one, it won't change behavior.

Question 6

How can a small business in NJ reduce employee turnover without raising pay?

Gordon Marzano · Accepted Answer

Pay matters, but engagement, clear growth paths, and consistent performance management often do more to keep people than a raise alone. Businesses that invest in structured feedback, recognition, and career development tend to see lower turnover than those competing on salary alone.

Question 7

Is it legal to use AI to make hiring or firing decisions in New Jersey?

Gordon Marzano · Accepted Answer

AI can support HR processes like screening resumes or scheduling, but New Jersey — like a growing number of states — is increasing scrutiny on how AI influences employment decisions. Final hiring, promotion, discipline, and termination decisions still need documented human judgment behind them. Relying on AI alone can expose a business to discrimination or wrongful termination claims.

Question 8

What are the biggest NJ HR trends small businesses need to watch in 2026?

Gordon Marzano · Accepted Answer

The three biggest are AI adoption in HR functions (and the compliance risk that comes with it), rising labor costs paired with retention challenges, and frequent changes to New Jersey compliance requirements — including the new mandatory employee separation reporting and ongoing wage-and-hour enforcement.

New Jersey Employment Law Changes in 2026: 6 Updates Every Employer Should Act On

Why Your Business Needs an AI Acceptable Use Policy

NJ HR Trends 2026: 3 Issues Every Small & Midsize Business Should Have on Its Radar

AI in HR Consulting: Where the Human Touch Still Wins

Categories

Recent Posts

Newsletter Signup

Next Steps: Sync an Email Add-On