Recently, Governor Murphy signed amendments to the NJ Unemployment Compensation Law. These amendments are effective July 31, 2023, and are intended to streamline the administration of unemployment insurance benefits by the New Jersey Department of Labor (“NJDOL”) Division of Unemployment Insurance (the “Division”).
To qualify for Unemployment Insurance benefits in 2023, you need to have earned a minimum of $260 per week for 20 weeks or more in covered employment during the base year period, or earned at least $13,000 in total covered employment during the base year period.
New Jersey’s unemployed workers qualify for benefits based on the number of base weeks worked during the base-year period, with a maximum eligibility of 26 weeks. Individuals working less than full-time due to lack of work may receive partial benefits.
New Employer Requirement – BC-10 Form
New Jersey’s at-will employment allows straightforward firing. Employers must provide Form BC-10 to employees separated from work for seven days or more.
This is regardless of whether the employee:
- quits
- is fired, or
- laid off.
And, this is regardless of whether the separation is:
- permanent,
- temporary, or
- for an indefinite period.
Employers are not required to send the completed BC-10 form to the Division. However, employers must provide the employee’s date of separation on the BC-10 form. This is the only information they need to provide to the Division.
In some cases, an employer may fail to provide the NJ BC-10 form to a separating employee. In this scenario, the employee still is responsible for reporting to file an unemployment claim. If an employer willfully violates the regulation, they may be liable for fines.
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New NJDOL Division of Unemployment Insurance Form
Along with the BC-10 form, the NJDOL is working on a new “form” that employers will need to submit to the Division. The new “form” will assist the Division in making decisions regarding benefits to be paid. Employers need not worry about this new form until the NJDOL finishes creating the form.
Electronic Communication with the NJDOL
The amendments also require employers to conduct all communications with the Division electronically. Accounts can be created on the NJDOL website. If you previously had an online account, you do not need to set up a new account.
Employers who use a Professional Employer Organization (“PEO”) do not need to create an account. The PEO is required to do so instead.
Other Changes
The amendments also modified several deadlines that relate to the unemployment process:
- The Division will notify the employer within seven (7) days of an employee filing an unemployment insurance claim. Or, they will notify the employer within seven (7) days of the employer’s submission of the required information, whichever occurs first. The employer will then have seven (7) days to respond.
- The Division will make an initial benefits determination within three (3) weeks of receiving a separated employee’s claim.
- Claimants will have twenty-one (21) days to appeal an initial Division determination. But, employers will still only have seven (7) days from the confirmed receipt of a determination to appeal.
Enhanced Penalties for Non-Compliance
Employers may now be subject to increased penalties for two reasons:
- failure to provide the Division with reports or,
- for knowingly making a false statement.
Penalties can now be assessed as a $500 fine or 25% of the amount of unemployment benefits. Further, each day of non-compliance may be considered an additional violation.
What’s Next?
Employers should establish policies and procedures to ensure they will be able to comply with the above requirements.
If you are an employer, it may be confusing to navigate the changes to the NJ Unemployment Compensation Law, or with any other employment laws. So if you would like assistance, contact any member of the Weiner Law Group Employment Law Team.
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