New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1361

Introduced
2/3/22  

Caption

Excludes payments made for unemployment compensation benefits related to layoffs resulting from public health emergency or state of emergency from calculation of employer contribution for unemployment compensation benefits.

Impact

The enactment of S1361 would significantly modify the way employer contributions are calculated for the unemployment compensation fund in New Jersey. Currently, employers' contribution rates are adjusted based on their experience ratings, which consider the number of unemployment claims made by former employees. By excluding benefits paid during declared emergencies from this calculation, the bill aims to stabilize employer contributions, potentially allowing businesses greater financial flexibility in adverse situations. This could promote quicker recovery and retention of jobs post-emergency.

Summary

Senate Bill No. 1361 aims to alleviate the financial burden on employers resulting from layoffs caused by public health emergencies or states of emergency. Specifically, the bill proposes that any unemployment compensation benefits provided to laid-off employees under such conditions should not be considered when calculating the employer's contribution rates to the state unemployment compensation fund. This move is intended to reduce the economic impact on businesses that are forced to lay off workers during crises, such as pandemics or natural disasters.

Contention

Notable points of contention regarding S1361 may arise from concerns about its long-term implications for the unemployment compensation system. Critics might argue that exempting certain unemployment claims from contribution calculations could undermine the financial sustainability of the unemployment fund. Furthermore, there may be debates on whether the bill disproportionately benefits larger employers at the expense of workers’ rights and protections. Opponents could assert that the bill sends a message that businesses are not held accountable for decisions that lead to layoffs during emergencies, potentially harming employees relying on the safety net provided by unemployment benefits.

Companion Bills

NJ A2327

Same As Excludes payments made for unemployment compensation benefits related to layoffs resulting from public health emergency or state of emergency from calculation of employer contribution for unemployment compensation benefits.

Previously Filed As

NJ A2327

Excludes payments made for unemployment compensation benefits related to layoffs resulting from public health emergency or state of emergency from calculation of employer contribution for unemployment compensation benefits.

NJ A972

Excludes payments made for unemployment compensation benefits related to layoffs resulting from coronavirus disease 2019 pandemic from calculation of employer contribution for unemployment compensation benefits.

NJ A1108

Excludes payments made for unemployment compensation benefits related to layoffs resulting from coronavirus disease 2019 pandemic from calculation of employer contribution for unemployment compensation benefits.

NJ S1832

Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.

NJ S2637

Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.

NJ A2440

Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.

NJ A2152

Allocates sufficient funds to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.

NJ S3310

Redirects portion of worker's unemployment compensation trust fund contribution to unemployment compensation administration fund.

NJ A4043

Redirects portion of worker's unemployment compensation trust fund contribution to unemployment compensation administration fund.

NJ A4077

Allocates assistance to unemployment compensation fund from federal government and State funds, suspends certain increases in employer taxes, and adjusts wages for purpose of calculation of rate of employer contribution to fund.

Similar Bills

CA AB1272

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MI SB0976

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HI HB1085

Relating To The Hawaii Employment Security Law.

HI SB1383

Relating To The Hawaii Employment Security Law.

HI HB1085

Relating To The Hawaii Employment Security Law.

CA AB805

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NJ A3683

Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.

CA AB1066

Unemployment compensation: benefits payable: collection.