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May 2023: New Jersey Extends Unemployment Insurance Benefits for Striking Workers

17 May


Update Applicable to:

All Employers

What happened?

On April 24, 2023, New Jersey Governor Phil Murphy signed A4772/S3215, which addresses unemployment insurance (“UI”) benefits for workers during labor disputes, including strikes.  This bill addresses certain loopholes that currently prevent workers participating in labor disputes, such as strikes, from receiving access to UI benefits.

What are the details?

In particular, the bill amends existing law to:

  1. Permit UI benefits to be distributed to workers during an employer lockout even if a strike did not immediately precede the lockout; 
  2. decrease the timeframe from 30 days to 14 days following a strike that UI benefits are disqualified, while allowing for benefits to be paid immediately regardless of the timeframe if replacement workers are hired on either a permanent or temporary basis; and 
  3. clarify that there is no disqualification if an issue in the labor dispute is found to be the failure of the employer to comply with an agreement between the parties.

The Bill took effect immediately and will apply to all UI benefit claims filed on or after January 1, 2022.

For more information, please see the links below:

Governor’s Page News Release

Bill: AB 4772

Law Firm Summaries/Opinions: Article 1, Article 2

What do employers need to do?

Employers should review the above links to become familiarized with the amendments and exceptions within the law.

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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