Nov-24-10 Christie Administration Follows Through on Critical Reforms to New Jersey Unemployment Insurance System New Rules are Next Step in Process to Ensure Future Viability of UI System
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The proposal changes the unemployment insurance eligibility rules for workers who are fired for misconduct or who voluntarily quit their jobs. The eligibility requirements are more stringent, particularly for workers fired for severe misconduct. A three-tiered structure is established (simple misconduct, severe misconduct and gross misconduct), which either prohibits payment of unemployment benefits or extends the waiting period before benefits can be paid. The proposed misconduct rules affecting employees who lose their jobs due to misconduct will result in estimated annual savings of between $150 and $175 million, significantly helping to restore the Trust Fund's solvency over time.
During the comment period, the Department will conduct a public hearing on the proposed rules on Friday, December 17, 2010 from 10:00 A.M to Noon in the 13th Floor Auditorium of the Labor Building at John Fitch Plaza in Trenton.
Commissioner Wirths said, “The rulemaking process is another step in our ongoing commitment to reform our state’s UI system to ensure long-term fund solvency while protecting the economic interests of New Jersey’s employers and workers.”
The legislation signed by Governor Christie also lessened the financial hardship of a UI payroll tax increase by holding the increase to a single column in Fiscal Year 2011, rather than allowing a move to the column with the highest tax rates, which is what would have happened had the Governor and the Legislature not acted. As a result, rather than an average wage tax increase of more than $400 per worker, employers saw an average increase estimated at $130 per employee.
The Department also is modernizing the process through which UI benefits are delivered to claimants, by moving to electronic delivery of benefits through direct deposit into bank accounts or debit cards. The Department will be able to deliver funds to UI claimants faster, more securely and in a more user-friendly way. Eliminating antiquated paper checks by spring, 2011 will reduce printing and mailing costs by an estimated $7 to $8 million annually.
The Unemployment Insurance Task Force created under the law is studying and assessing the current unemployment insurance situation and will recommend additional ways in which the state can restore the trust fund to solvency while balancing the interests of workers, employers and the impact on the overall economy. The task force will make its recommendations before the end of the year.
Information on the proposed rule changes and the comment period are on the Department website at: http://lwd.dol.state.nj.us/labor/roles/legal/2014legindex.html.
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