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Employer Requirements Under New Jersey Unemployment Compensation Law to Change

16 Aug


Update Applicable to:

All employers in New Jersey

What happened?

On November 3, 2022, New Jersey Governor Phil Murphy signed amendments to the New Jersey Unemployment Compensation Law, with an effective date of July 31, 2023. Despite the changes that took effect on July 31, the NJDOL has not yet released the required guidance to employers. Rather, the NJDOL’s responses to frequently asked questions state that the NJDOL “is still developing the new infrastructure that will enable this new requirement.” 

What are the details?

These amendments bring significant changes to various aspects of the law, including employer reporting requirements, deadlines for unemployment benefits determinations, penalties for employer noncompliance, and overpayment liability.

New Reporting Obligations for Employers:

Starting from the effective date, New Jersey employers will have new reporting obligations. Alongside providing terminated employees with the State-issued Instructions for Claiming Unemployment Benefits (Form BC-10) immediately after separation, employers will also be required to “immediately and simultaneously” send the benefit determination information and a copy of Form BC-10 electronically to the New Jersey Department of Labor and Workforce Development (DLWD). This means employers must submit separation information to the DLWD even if the separated employee does not file a claim for unemployment benefits.

Stiffer Penalties for Noncompliance:

The new law imposes stricter penalties for employer noncompliance. Employers who “willfully fail or refuse to furnish any reports or information” will be subject to a fine of $500 per day or 25% of the amount fraudulently withheld. Each misrepresentation or failure to disclose a material fact and each day of such failure or refusal will be considered separate offenses.

Changes to Overpayment Liability:

Under the amended law, employer liability for benefit overpayments will be based on a new “allocation of fault” standard. If the overpayment results from the employer’s or the DLWD’s mistake, the claimant will not be required to repay the additional monies.

Changes to Deadlines for Benefit Determinations:

The amendments modify several deadlines concerning the unemployment benefits determination process. Employers will have seven days to respond to DLWD requests for information, down from the current ten-day window. When appealing an initial benefit determination or subsequent determinations unrelated to benefits ending or being reduced, employers will have seven days after confirmed receipt to file their appeal, while claimants will have within 21 days of mailing to appeal. For subsequent benefit determinations related to benefits ending or being reduced, the claimant will have seven days following notification of the decision, which is not addressed in the current law.

Chart of revised deadlines for the unemployment benefits determination process:

For more information, please see the links below:

Amendments to the New Jersey Unemployment Compensation Law

FAQs about new changes to the NJ Unemployment

Article 1, Article 2

What do employers need to do?

Employers need to be aware of the upcoming changes to the law and review their unemployment procedures to comply with the new requirements. The increased penalties for noncompliance underscore the importance of meeting the new reporting and deadline obligations proactively.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's New Jersey PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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