This paper presents the New Jersey edition of the National Council on Teacher Quality's 2008 "State Teacher Policy Yearbook". The 2008 "Yearbook" focuses on how state policies impact the retention of effective new teachers. This policy evaluation is broken down into three areas that encompass 15 goals. Broadly, these goals examine the impact of state policy on 1) identifying effective teachers, 2) retaining those deemed effective and 3) exiting those deemed ineffective. Overall, New Jersey has done a good job in meeting some goals; however, significant room for improvement remains in several others. The state completely missed seven goals, met a small portion of one, partially met four and fully met three, including one best practice designation. New Jersey's best performances are in its effective induction for new teachers, its requirement of multiple formal evaluations for new teachers and its effort to close loopholes that allow teachers who have not met licensure requirements to continue teaching. The state has the most work to do in making tenure decisions meaningful, ensuring only factors that advance teacher effectiveness are required for permanent licenses, articulating consequences for teachers with unsatisfactory evaluations and strengthening some policies regarding teacher compensation issues. New Jersey's progress toward meeting these goals is summarized. The body of the report provides a more detailed breakdown of the state's strengths and weaknesses in each area. New Jersey has an overall performance of C for 2008. Goals for each area are appended. (Contains 57 figures.) [Additional funding was provided by "The Teaching Commission." For the national summary, see ED514690.]