N.J. Stat. tit. 34, ch. 18

in effect

N.J. Stat. § 34:18-1 Fidelity deposits by employees as trust funds

Any and all sums of money taken or received by any employer from any employee as deposit or security for the faithful performance by such employee of his duties shall be deemed to be trust funds held in trust by such employer for and on behalf of such employee, to be repaid upon the termination of employment or the balance thereof in accordance with the provisions of any contract of employment. Such employer shall not be required to segregate such moneys nor deposit such moneys in separate accounts; provided, however, that such employer shall at all times have available in cash, on deposit or in readily negotiable securities a sum not less than the aggregate amount of such trust funds. L.1939, c. 117, p. 424, s. 1.

N.J. Stat. § 34:18-2 Failure to segregate security moneys; bankruptcy; insolvency

The failure of any employer to segregate such moneys or to deposit such moneys in separate accounts shall not be deemed or taken to constitute a discontinuance of such relationship of trust, and the inability to trace any such trust funds shall not be deemed or taken as a discontinuance of such relationship of trust. Upon the bankruptcy or insolvency of any such employer who shall not have segregated such moneys or deposited such moneys in separate accounts, the first moneys realized from the assets of any such employer shall be taken and set aside in an amount equal to the sums of money taken or received by said employer as deposit or security aforesaid, and dealt with as if such moneys had been segregated by said employer or deposited in separate accounts and the trust aforesaid shall be impressed thereon. L.1939, c. 117, p. 425, s. 2.

N.J. Stat. § 34:18-3 Failure to repay security moneys; punishment

Any employer who shall fail to pay back to an employee such deposit or security moneys or so much thereof as may be due upon the termination of employment, or in accordance with the provisions of the contract of employment shall be guilty of a misdemeanor, and upon conviction shall be subject to a fine not exceeding one thousand dollars ($1,000.00) or imprisonment for a period not exceeding one year, or both. L.1939, c. 117, p. 425, s. 3.

N.J. Stat. § 34:18-4 Contracts waiving statutory provisions void

Any contract or agreement between any employer and employee whereby the provisions of section one (1) and two (2) hereof are waived or whereby said employee may agree that any or all sums of money paid by him to his employer as deposit or security for the faithful performance of his duties shall not constitute a trust fund in accordance with the provisions of section one (1) and two (2) shall be void. L.1939, c. 117, p. 425, s. 4.

N.J. Stat. § 34:18-5 "Employer" defined

The term employer shall include any individual, or members of firms or partnerships, and all officers of corporations having to do with the management of such corporations or the financial affairs thereof. L.1939, c. 117, p. 426, s. 5.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026