New procedural requirements for employers in New Jersey regarding the state’s unemployment benefits law became effective July 31, 2023. New Jersey’s Department of Labor and Workforce Development (DOLWD) now requires employers to report any separation from an employee to the Division of Unemployment Insurance (the “Division”) electronically. Regardless of the reason for separation, compliance with the reporting requirement is mandatory.
What the Law Requires:
Under the amendment, employers are required to communicate with the Division electronically, providing information necessary for it to make determinations on benefits qualification. Likewise, employers must report separation of employment electronically through Employer Access via myNewJersey using a new notice which has not yet been released. Accordingly, employers should continue using Form BC-10, which employers are already required to provide to employees upon separation. Employers will need to also provide this information directly to the Division. If an employer fails to disclose the necessary information to the Division after a separation of employment and the separated employee files for benefits from the Division, the Division will formally request the information from the employer. The employer will have seven calendar days to comply or face a penalty.
In the meantime, employers need to register an account with Employer Access and provide the Division with an e-mail address for all communications. If an employer uses a Professional Employer Organization (PEO) to hire workers, however, then it is the PEO’s responsibility to register for Employer Access. If this is the case, employers should communicate with their PEO about this new requirement.
Failure to Comply:
If an employer fails to provide the Division with all the necessary separation information for departing employees, the Division will notify the employer within either seven days from the employer’s initial submission of information or seven days of the employee’s unemployment claim, whichever is sooner. The employer will then have seven days from the date of notification to provide the requisite information. If the required documents are not supplied to the Division within the given timeframes, the State can penalize the employer the greater of a $500 fine or 25% of any amount, whether a contribution or any other payment, that may be fraudulently withheld.
Appeal:
Additional changes include the time for which an employer may appeal an initial determination. Employers must now act quickly, within seven calendar days after confirmed receipt of an initial benefit determination, to file an appeal. An employer may also appeal the charging of benefits to the employer’s account after the initial determination becomes final.
The author thanks summer law clerk Jonathan Starego for his assistance.