NJ Benefit Rates Increases
The NJ Department of Labor and Workforce Development has published their proposed maximum benefit rates for Unemployment, Workers’ Compensation, Temporary Disability and Family Leave Insurance. While these rates are only proposed at this time, it is expected with they will take effect in January.
Due to the changes in the Family Leave Insurance and Temporary Disability Benefits law, there will be a second, mid-year (July 1) increase in those benefits.
Proposed 2020 Rates
Workers’ Compensation –
Maximum Benefit Rate: $945
Unemployment –
Maximum Benefit Rate: $713
Wage Base: $35,300
Base Week: $200
Temporary Disability and Family Leave Insurance –
For periods of disability or family leave commencing on or after January 1, 2020 and prior to July 1, 2020:
Maximum Benefit Rate: $667
Wage Base: $134,900
Base Week: $200
For periods of disability or family leave commencing on or after July 1, 2020 and prior to January 1, 2021:
Maximum Benefit Rate: $881
Wage Base: $134,900
Base Week: $200
As a reminder, the maximum benefit period for Family Leave Insurance will increase from six weeks to twelve weeks for leaves commencing on or after July 1, 2020.
Minimum Wage
New Jersey’s minimum wage for most workers will increase to $11.00 per hour beginning January 1, 2020.
Exemption Salary Threshold
The salary threshold to be considered an exempt employee will increase to $35,568 per year ($684 per week). The “highly compensated employees” exemption threshold will increase to $107,432 per year. The new rule is effective January 1, 2020.