Governor Proposes Unemployment Insurance Reform

Mar 2010

(Livingston, NJ) Governor Chris Christie has proposed major revisions to the state’s unemployment system, which is heading for insolvency, including restrictions on employees fired for “misconduct.”

If passed by the Legislature, employers would see taxes go up about $130 per employee, according to the Governor’s office. Additionally, weekly unemployment benefits would be reduced from $600 per week to $550. 

One of the big changes would be the imposition of a “waiting week”, which would mean that people who are furloughed for one week would no longer be eligible for unemployment compensation insurance.

Another big change would be the clarification of what constitutes “misconduct” which now restricts employees’ ability to receive UI benefits. Under current law, employees fired for “gross misconduct” are ineligible.

According to John Sarno, president of the Employers Association of New Jersey (EANJ) clarifying the definition of “misconduct” will help employers who are trying to reduce their exposure to rising unemployment taxes.

“It requires an employer to have written discipline policies and to document the reason for discharge,” says Sarno. “And if the employer can present objective evidence of the employee’s misconduct or gross negligence, it will hit the company’s bottom line directly in a positive way.”

EANJ is offering a seminar on documenting to minimize unemployment claims payouts on April 7th.  Click for more information and to register.