Third-party sick pay is not taxable in NJ. It is taxable on the Federal return, which is why you see information in Box 1, and why you don't see information in box 16. But make sure on the W2 screen in TurboTax to check the Third-Party Sick Pay box so that it is excluded from your NJ income.
Here's a website with additional information: Nontaxable Income
in NJ
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