Effective July 31, 2023, pursuant to amendments signed into law by Governor Phil Murphy, several changes will impact employer compliance with the New Jersey Unemployment Compensation law.  The increased penalties associated with these changes highlights the importance of ensuring compliance.

First, there will be new reporting obligations upon the separation of an NJ employee. Existing law requires employers to provide separated employees with Form BC-10 (Instructions for Claiming Unemployment Benefits) immediately upon separation from employment.  Beginning July 31, when providing that notice, employers will be required to “simultaneously” electronically send (1) the benefit determination information and (2) a copy of Form BC-10 to the Department of Labor and Workforce Development (“DLWD”).  Employers should look for the DLWD to release directions identifying what information employers must provide regarding the benefit determination information, which will include information pertaining to disqualification from eligibility (e.g., unemployment due to resignation or misconduct).

Second, there will be revised deadlines for the unemployment benefits determination process:

Finally, employers failing to comply with these changes will face higher penalties for employer non-compliance from $100 per day to $500 per day or 25% of amount fraudulently withheld, whichever is greater.  The amendments also expand actionable offenses under the law to now include failure to provide information immediately upon separation from employment.

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New Jersey employers should take note of these upcoming obligations and begin taking steps to comply with the reporting and timing obligations.

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Photo of Evandro Gigante Evandro Gigante

Evandro Gigante is a partner in the Labor & Employment Law Department and co-head of the Employment Litigation & Arbitration group and the Hiring & Terminations group. He represents and counsels clients through a variety of labor and employment matters, including allegations of…

Evandro Gigante is a partner in the Labor & Employment Law Department and co-head of the Employment Litigation & Arbitration group and the Hiring & Terminations group. He represents and counsels clients through a variety of labor and employment matters, including allegations of race, gender, national origin, disability and religious discrimination, sexual harassment, wrongful discharge, defamation and breach of contract. Evandro also counsels employers through reductions-in-force and advises clients on restrictive covenant issues, such as confidentiality, non-compete and non-solicit agreements.

With a focus on discrimination and harassment matters, Evandro has extensive experience representing clients before federal and state courts. He has tried cases in court and before arbitrators and routinely represents clients before administrative agencies such as the Equal Employment Opportunity Commission, as well as state and local human rights commissions.

Photo of Laura Fant Laura Fant

Laura Fant is a special employment law counsel in the Labor & Employment Law Department and co-administrative leader of the Counseling, Training & Pay Equity Practice Group. Her practice is dedicated to providing clients with practical solutions to common (and uncommon) employment concerns…

Laura Fant is a special employment law counsel in the Labor & Employment Law Department and co-administrative leader of the Counseling, Training & Pay Equity Practice Group. Her practice is dedicated to providing clients with practical solutions to common (and uncommon) employment concerns, with a focus on legal compliance, risk management and mitigation strategies, and workplace culture considerations.

Laura regularly counsels clients across numerous industries on a wide variety of employment matters involving recruitment and hiring, employee leave and reasonable accommodation issues, performance management, and termination of employment . She also advises on preparing, implementing and enforcing employment and separation agreements, employee handbooks and company policies, as well as provides training on topics including discrimination and harassment in the workplace. Laura is a frequent contributor to Proskauer’s Law and the Workplace blog and The Proskauer Brief podcast.