New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A2327

Introduced
2/7/22  

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 bill is expected to have immediate financial implications for employers in New Jersey, particularly those who may face significant layoffs during emergencies. Under the current law, an employer's contribution to the unemployment compensation fund is influenced by their experience rating—which is determined by how often former employees claim benefits. By excluding layoffs caused by public health or state emergencies from this calculation, A2327 seeks to incentivize businesses to retain employees during such critical times without incurring additional costs.

Summary

A2327, introduced in the New Jersey Legislature, aims to provide financial relief to employers during periods of public health emergencies or states of emergency. The bill specifies that any unemployment compensation benefits paid to employees due to layoffs occurring in these circumstances will not be counted when calculating employer contributions to the unemployment compensation fund. This amendment is designed to alleviate financial pressure on businesses significantly affected by crises such as pandemics or natural disasters.

Contention

While supporters of A2327 argue it provides necessary support for employers and promotes job retention during emergencies, there may be dissenting viewpoints regarding the long-term sustainability of unemployment compensation funding. Critics may question whether excluding these benefits from employer calculations could lead to reduced funding for the unemployment compensation fund, thereby impacting its ability to serve those in need during future crises. This aspect of the bill invites discussion about balancing immediate relief for employers with the need to sustain the fund for broader worker protection.

Implementation

If enacted, A2327 will immediately take effect, allowing employers to adjust their financial planning in response to the new regulations concerning unemployment compensation. This proactive measure is part of a broader legislative effort to address the challenges posed by unforeseen public crises, highlighting the state's commitment to supporting its workforce and economy.

Companion Bills

NJ S1361

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 S1361

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 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 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 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 HB1085

Relating To The Hawaii Employment Security Law.

HI SB1383

Relating To The Hawaii Employment Security Law.

CA AB805

Unemployment insurance: contribution rates.

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.