New Jersey Assembly Bill A972

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

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.

Impact

The implications of A972 are significant for state laws concerning unemployment compensation. By specifically excluding pandemic-related benefit payments from employer contribution calculations, the bill modifies the established method of assessing contributions based on an employer's experience rating. This adjustment offers immediate financial relief to businesses still struggling in the wake of the pandemic and could foster a quicker recovery as it discourages potential layoffs resulting from heightened unemployment fund contributions.

Summary

Assembly Bill A972 aims to provide financial relief to employers by excluding unemployment compensation benefits paid due to layoffs stemming from the COVID-19 pandemic from the calculation of employer contributions to the unemployment compensation fund. This bill addresses the economic challenges faced by businesses which had to reduce staff as a direct result of the pandemic. The legislation is designed to alleviate the financial burden on employers who have experienced increased unemployment claims during this crisis, thereby encouraging job retention and recovery.

Contention

However, the bill may also incite debate regarding its impact on the unemployment compensation system's funding. Critics might argue that excluding these payments could weaken the unemployment trust fund's stability in the long term. Furthermore, there are concerns about the fairness of exempting pandemic-related layoffs while other employers face similar challenges under different circumstances. This aspect could lead to discussions about equity among businesses in varying situations post-pandemic.