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This communication has been updated as follows:
Update :The New Jersey Department of Labor (NJDOL) has instructed employers to create an Employer Access account as soon as possible to provide an email address for electronic correspondence with the NJDOL Divisions of Employer Accounts and Unemployment Insurance (under the law, all correspondence must be done electronically). NJDOL will use the email provided to send further updates to employers.
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New Jersey has enacted several laws that impact unemployment processes by adding employer requirements and employee protections during labor disputes.
The Details
New Jersey Governor Phil Murphy signed into law:
- Amendments that add employer reporting requirements and amend certain deadlines in the benefits determination process. These changes took effect on July 1, 2023.
- Assembly Bill 4772, which expedites unemployment payments during certain labor disputes. The law took effect immediately and is retroactive to unemployment claims filed on or after Jan. 1, 2022.
Amendments
Reporting Requirements
As background, employers must provide Form BC-10 immediately to employees upon their separation from employment. Under the amendments, employers must also, upon the separation of a New Jersey employee, simultaneously and electronically send to the New Jersey Department of Labor (NJDOL):
- A copy of Form BC-10; and
- A new form (to be published by the NJDOL with submission instructions) with specific information to enable the NJDOL to make a benefit determination, regardless of whether the separating employee files a claim. Employers must also provide this new form to separated employees.
Initial Benefits Determination Deadlines
Under the amendments, the following initial benefits determination deadlines took effect beginning on July 31, 2023:
Deadline
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Current Law
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Law effective July 31, 2023
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DOL Notification to Employer Notification
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N/A
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Within 7 days of the first occurrence of:
- The filing of a claim; or
- The employer providing benefit determination information.
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Employer Response to DOL Request for Information
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10 Days
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7 Days
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Initial Benefits Determination
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2 Weeks
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3 Weeks
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Employer Initial Benefit Determination Appeal
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7 Days after delivery
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7 days after confirmed receipt, including by electronic means.
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Appeals of subsequent benefits determination (if benefits were terminated or reduced)
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N/A
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Claimant has 7 days following notification of written explanation
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Penalties
An employer that willfully fails or refuses to provide the required information (including the required separation information) would be required to pay a $500.00 fine or 25 percent of the amount “fraudulently withheld,” whichever is greater. Each day the failure or refusal occurs is treated as a separate offense.
Assembly Bill 4772
Assembly Bill 4772 applies to unemployment benefit claims filed on or after Jan. 1, 2022. The amended law now allows unemployment insurance benefits to be paid to employees:
- During an employer lockout even if a strike did not immediately precede the lockout.
- In 14 days (previously 30 days) following a strike.
- Immediately regardless of the timeframe if replacement workers are hired on either a permanent or temporary basis.
Finally, the amended law makes clear that employees may still receive benefits if an issue in the labor dispute is:
- A failure or refusal of the employer to comply with an agreement or contract between the employer and the claimant, including a collective bargaining agreement with a union representing the claimant; or
- An employer's failure or refusal to comply with a State or federal law pertaining to hours, wages, or other conditions of work.
Next Steps
New Jersey employers should review the new requirements and train HR personnel and supervisors on their obligations under the law.