NEW JERSEY UNEMPLOYMENT COMPENSATION LAW EXTENDED BENEFITS LAW WORKFORCE DEVELOPMENT PARTNERSHIP ACT SUPPLEMENTARY LEGISLATION

STATE OF NEW JERSEY DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT NEW JERSEY UNEMPLOYMENT COMPENSATION LAW EXTENDED BENEFITS LAW WORKFORCE DEVELOPMENT PARTNERSHIP ACT SUPPLEMENTARY LEGISLATION JAMES E. MCGREEVEY Governor KEVIN P. MCCABE Commissioner Prepared by: Bureau of Program Services and Standards July 2004

TABLE OF CONTENTS UNEMPLOYMENT COMPENSATION LAW 43:21-1. Short Title...1 43:21-2. Declaration of State Public Policy...1 43:21-3. Benefits...1 (a) Payment of benefits...1 (b) Weekly benefits for unemployment...1 (c) (1) Weekly benefit rate...2 (2) Dependency benefits...2 (A) Calculation of benefit rate increase for dependents...2 (B) Definition of dependent...2 (C) Duration of dependency benefits...2 (D) Acceptable proof of dependency...2 (3) Computation of statewide average weekly wage...3 (d) Maximum total benefits...3 (1) (A) (Deleted) (B) Computation of maximum total benefits after July 1, 1986...3 (2) Limitation of maximum benefits when eligible under Section 4, Subsections (c) and (f)...3 (3) (Deleted) 43:21-4. Benefit Eligibility Conditions...4 (a) Registering for work and reporting...4 (b) Making a claim...4 (c) (1) Ability to work, availability for work, active search for work...4 (2) Modification of requirement of actively seeking work...4 (3) Eligibility of individual on vacation without pay...4 (4) (A) Eligibility of individual attending training program...4 (B) Approval of training programs...4 (C) Not withhold approval of training program...5 (D) Definition of labor demand occupation...5 (5) Eligibility of individual summoned to jury service...5 (6) Eligibility of individual attending a funeral of immediate family member...5 (7) Eligibility of individual in self-employment assistance activities...6 (8) Worker profiling and failure to participate in reemployment services...6 (9) Board worker for county board of elections on election day not deemed unavailable for work...6 (d) Waiting period and payment of benefits for waiting period...6 (e) (1) (Deleted) (2) Minimum base year wages, benefit years commencing on or after January 1, 1996 and before January 7, 2001...7 i

(f) (g) (h) (3) Provisions for agricultural workers, benefit years commencing before January 7, 2001...7 (4) Minimum base year wages, benefit years commencing on or after January 7, 2001...8 (5) Provisions for agricultural worker, benefit years commencing on or after January 7, 2001...8 (6) Requalification Requirements...8 Accident or sickness during unemployment resulting in total disability...8 (1) Conditions under which disability benefits may not be paid...8 (A) Not under care of legally licensed physician, dentist, optometrist, podiatrist or chiropractor...9 (B) (Deleted) (C) Self-inflicted injury; injury sustained in perpetration of a crime of the first, second or third degree...9 (D) Receipt of unemployment or disability benefits from United State or other State...9 (E) Receipt of disability benefits under Temporary Disability Benefits Law...9 (F) Disability commencing while a covered individual under Temporary Disability Benefits Law...9 (2) Benefit payments paid from State Disability Benefits Fund; not charged to employer...9 Service for State and political subdivisions and for non-profit organizations...9 (1) Service performed after December 31, 1977 in an instructional, research or principal administrative capacity for an educational institution for a period between two successive academic years or two regular terms or a period of paid sabbatical leave...9 (2) Service performed after September 3, 1982 in any other capacity for an educational institution for a period between two successive academic years or terms...9 (3) Services described in (1) and (2) above for any period of customary vacation period or holiday recess...10 (4) Services described in (1) and (2) above for any period employed by a governmental educational service agency...10 Employment consisting of participating in sports, athletic events or training to participate in same...10 (i) (1) Services performed by an alien; modifications imposed by Federal Unemployment Tax Act...10 (2) Data required by individuals...11 (3) Benefit determinations; preponderance of evidence...11 (j) Consolidated administration of disability claims...11 43:21-4.1. Worker profiling system; notice to applicant of benefits, services available...11 43:21-5. Disqualification for Benefits...12 (a) Voluntary leaving without good cause...12 (b) Discharge for misconduct; gross misconduct...12 ii

43:21-5a. (c) Failure to apply for, or accept, suitable work...12 (1) Suitable work...13 (2) Nonsuitable work...13 (d) Stoppage of work due to labor dispute except where...13 (1) Claimant is not participating or interested in dispute...13 (2) Claimant does not belong to the grade or class participating or interested in dispute...13 (e) Receipt of remuneration in lieu of notice...13 (f) Receipt of unemployment benefits from United State or other State...13 (g) (1) Illegal receipt of benefits...14 (2) Prosecution of civil, criminal, or administrative action or proceeding under provisions of Section 16...14 (h) (1) No denial of benefits if participating in training approved under Trade Act of 1974...14 (2) Suitable employment as defined for purposes of the Trade Act of 1974...14 (i) Full-time student; certain exceptions to disqualification; definition of full-time student...14 (j) Domestic violence...15 Reduction of Benefit; Receipt of Governmental or Other Pension, Retirement, or Retired pay, Annuity or Other Similar Periodic Payment...16 43:21-5.1. (Repealed) 43:21-5.2. Unemployment Compensation for Federal Employees...16 43:21-6. Claim for Benefits...17 (a) Filing; employer must post notice; Notice to Unemployed Worker...17 (b) (1) Initial determinations with respect to benefit years commencing on and after January 1, 1953; employer to provide information requested; affidavits; initial determination; appeal limitations of other than most recent separating employers; payment of benefits for non-disputed periods; two determinations of entitlement...17 (2) Initial determinations in certain cases of concurrent employment with respect to benefit years commencing on and after January 1, 1953 and prior to benefit years commencing on or after July 1, 1986...19 (3) Subsequent determinations with respect to benefit years commencing on and after January 1, 1953; appeals of continued benefits...19 (c) Appeals...19 (d) Appeal tribunals...19 (e) Board of review...20 (f) Procedure covering disputed claims, claims on appeal and demands for refunds...20 (g) Witness fees...20 (h) Court review...20 (i) Failure to give notice...20 iii

43:21-6.1. Child support obligations...21 a. Disclosure of child support obligations...21 b. Withholding of child support payments...21 c. Payment of child support payments...21 d. Deduction of child support payments from unemployment benefits...21 e. Definition of unemployment compensation...21 f. Section applies only if arrangements for reimbursement have been made...22 g. Definition of child support obligations...22 h. Definition of State or local child support enforcement agency...22 43:21-7. Contributions...22 (a) Payment...22 (1) Paid to the controller in accordance with prescribed regulations..22 (2) Computation regarding fractional part of a cent...22 (b) Rate of employers contributions...22 (1) For 1947 and thereafter...23 (2) Wages through December 31, 1975 defined...23 (3) Wages as of January 1, 1976 defined...23 (c) Future rates based on benefit experience...23 (1) Separate account for each employer...23 (2) Joint accounts...24 (3) 5.4% rate; assignment of lower rate if consistent with conditions for additional credit allowance...24 (4) Employer Reserve Ratio...24 (A) 2.8% rate and provisions...24 (1) 2.5% rate...24 (2) 2.2% rate...24 (3) 1.9% rate...25 (4) 1.6% rate...25 (5) 1.3% rate...25 (6) 1.0% rate...25 (7) 0.7% rate...25 (8) 0.4% rate...25 (B) (1) 4% rate...25 (2) 4.3% rate...25 (3) 4.6% rate...25 (C) Specially assigned rates...25 (D) Increase or reduction of contribution rates...25 (5) Unemployment Trust Fund Reserve Ratio...25 (A) Increase in rates as determined by relating total assets of fund to total taxable wages for preceding year...25 (B) Decrease in rates as determined by relating total assets of fund to total taxable wages for preceding year...26 (C) Balance defined...26 (D) Calculation of Unemployment Trust Fund Reserve Ratio...27 iv

(E) (i) (Deleted) (ii) (Deleted) (iii) (Deleted) (iv) (Deleted) (v) Experience Rating beginning on July 1, 2003; experience rating tax table...28 (vi) Experience Rating beginning on July 1, 2004; experience rating tax table...28 (F) (i) (Deleted) (ii) Fund balance is less than 1.00%...29 (iii) Fund balance is less than 0.50%...29 (G) Contribution Rate decrease of 0.1%...29 (H) Contribution Rate decrease of 52%...29 (I) Fund Reserve Ratio decreases to less than 4% or 3%...31 (J) Contribution Rate decrease of 0.0175%...32 (6) Additional contributions...32 (7) Transfers...32 (A) Transfer of all employment experience...32 (B) Transfer of part of employment experience...33 (C) Predecessor employer not entitled to adjusted rate after transfer of employment experience...33 (d) Contribution of workers...33 (1) Rate and deduction by employers...33 (A) 1% rate...33 (B) ½ of 1% rate...34 (C) 1.125% rate...34 (D) Contribution rates...34 (E) Reporting contributions...36 (F) Definition of contributions...37 (G) Contribution to state disability benefits...37 (2) (A) (Deleted) (B) (Deleted) (C) (Deleted) (D) (Deleted) (E) (Deleted) (3) Refund of excess employee contributions to both State and private plan disability funds...37 (4) Payment by constructive employer or other unit and recovery thereof...38 (5) Posting notices of election to become, or cease to be, an employer...38 (6) Workers contributions exempt from garnishment, attachment, etc....38 (e) Employer contributions to State Disability Benefits Fund...38 (1) Rate of employers contributions...38 v

(2) Employer exempt from contribution during continuance of approved private plan...39 (3) (A) Rates subject to modification...39 (B) Separate account for each employer...39 (C) Joint accounts...39 (D) Preliminary determination of rates for the twelvemonth period beginning July 1 of each calendar year...39 (1) ½ of 1% rate...39 (2) Credited contributions exceed benefits charged by more than $500.00...39 (3) Credited contributions exceed benefits charged by less than $500.00...40 (4) Benefits charged exceed credited contributions by more than $500.00...40 (E) (5) Increase or decrease of preliminary rate...40 (1) Determination of the condition of the State Disability Benefits Fund...40 (2) Final determination of rate...41 43:21-7.1. Repealed 43:21-7a-7g. Health Care Subsidy Fund...42 43:21-7.2. Non-Profit Organizations...47 (a) Financing of benefits...47 (1) Payment of contributions...47 (2) Employer subject on 1-1-72 may elect to reimburse...47 (3) Employer subject after 1-1-72 may elect to reimburse...47 (4) Reimbursement to be attributable to base year service...48 (5) Employer may change method of financing...48 (6) Extension of filing period...48 (7) Reimbursements after termination or canceling...48 (8) Determinations of effective and termination dates...48 (9) Liability to pay unemployment insurance contributions after termination of reimbursement option; contribution rate calculation...48 (A) Benefit charges attributable to base year services with nonprofit organization...48 (B) Determination of average annual payroll...48 (C) Calculating period of eligibility for modification...49 (D) Assignment of 1% rate...49 (b) Reimbursement payments...49 (c) Date of payment...49 (d) Payments no deductible from workers...49 (e) Application for Redetermination of Amount of Payment Required...49 (f) Interest and penalties for delinquency...49 (g) Termination for delinquency...50 (h) Bond or other security...50 (1) Bond...50 vi

(2) Deposit of money or securities...50 (3) Authority to terminate elections...51 (i) Group accounts...51 43:21-7.3. Governmental Entities or Instrumentalities...51 (a) Financing...51 (b) Election to pay contributions...51 (c) Terminating election...52 (d) Reporting and payment of contributions...52 (e) Establishing contribution rate...52 (f) Appropriation of monies for projected costs...52 (g) Manner of payment for governmental entity or instrumentality and its workers...52 (h) Worker contributions commencing July 1, 1986...53 43:21-7.4. Exemption from Taxation Not Applicable to Payments...53 43:21-7.5. Contribution Rates to Become Effective July 1, 1972...53 43:21-7.6. Inapplicability of Expenditure Limitations of Public School Education Act of 1975...54 43:21-7.7. Reduced new employer contribution rate...54 43:21-8. Period, Election, and Termination of Employer s Coverage...55 (a) For entire calendar year...55 (b) Termination of coverage...55 (1) Application for termination...55 (2) No individuals employed during 2 calendar year periods...55 (c) (1) Election of coverage by nonsubject unit...56 (2) Election to cover noncovered services...56 43:21-9. Unemployment Compensation Fund...56 (a) Establishment and control...56 (b) Accounts and deposit...56 (c) Withdrawals...57 (1) Benefit payments...57 (2) Administrative use...57 (d) (A) Purposes specified...58 (B) Limits of obligated period...58 (C) Limits of obligated monies...58 Management of funds upon discontinuance of Unemployment Trust Fund...58 43:21-9.1. Cancellation of Checks Six Years after Issuance; Credit to Accounts...59 43:21-10. Unemployment Compensation Commission...59 (a) Organization...59 (b) Executive director; powers and duties...60 (1) Formulation of rules and regulations...60 (2) Appointment and compensation of members...60 (3) Expenditures and budget...60 (4) Drawing of vouchers...60 (5) Delegation of powers...60 (c) Divisions...60 vii

(d) Board of review...61 (e) Powers and duties...61 (f) Quorum...61 43:21-11. Administration...61 (a) Duties and powers of Department of Labor...61 (b) Regulations; general and special rules...61 (c) Publication and distribution of law, etc....62 (d) Personnel...62 (e) Employment Security Council...62 (f) Employment stabilization...62 (g) Records and reports by employing units...62 (h) Oaths and witnesses...63 (i) Subpoenas...63 (j) Protection against self-incrimination...64 (k) State-Federal cooperation...64 43:21-11.1. Administration; agricultural workers...65 a. Enforcement of disqualifications...65 b. Issuance of bilingual forms...65 c. Timely processing...65 43:21-11.2. Notice posting; penalties for violation...65 a. Demands posting of English/Spanish notice regarding failure to accept work...65 b. Penalties for failing to post notice...65 c. Notices to be provided by the Department...65 43:21-11.3 Calendar year basis reporting of contributions; treatment of contributions; reporting...66 43:21-11.4 System of annual filings established...66 43:21-12. Employment Service...67 (a) Transfer of State Employment Service to commission; powers, duties and selection of personnel...67 (b) Financing...67 43:21-12.1. (Deleted) 43:21-12.2. (Deleted) 43:21-12.3. Rights of State employees while in employment with Federal Government...68 43:21-12.4. Benefit Payment to Veterans by State Agency...68 43:21-12.4a. Authorization Under Veteran s Readjustment Assistance Act...69 43:21-12.4b. Acts and actions in cooperation with Federal authorities...69 43:21-12.5. Classification and Compensation of Permanent to 12.7. Employment Service Employees Remitted to State Service...69 43:21-12.8. Payment of Reconversion Unemployment Benefits for Seamen...70 43:21-13. Unemployment Compensation Administration Fund...71 (a) Administration fund...71 (b) Reimbursement of fund...72 43:21-14. Collection of Contributions...72 (a) Report and payment of contributions...72 viii

(1) Penalties for failure to report or pay; interest on delinquent payments; extension of time for payment...72 (2) (A) Quarterly wage reporting, commencing July 1, 1984...73 (B) Penalties for failure to report...73 (C) Use of information...73 (D) Transfer of appropriation, files, etc. to Department of Labor...73 (b) Debt recoverable by court action; certificates of indebtedness...74 (c) Arbitrary assessments...74 (d) Deficiency assessment...74 (e) Certificate of debt; judgment; a lien on debtor s lands; review of legality or validity of indebtedness...74 (f) Refunds and adjustments of contributions...75 (g) Unemployment compensation auxiliary fund...76 43:21-14a. ZIP Code reporting...76 43:21-14b. Information to Transportation Commissioner...76 43:21-14.1. Refund of Employee Contributions...77 43:21-14.2. Termination of lien for contributions...77 43:21-14.3. Interest Repayment Fund...77 a. Purpose of fund...77 b. Assessment of interest...77 c. Special Assessment...78 d. Disposition of funds...78 43:21-15. Protection of Rights and Benefits...78 (a) Waiver of benefit rights void...78 (b) Limitation of fees...79 (c) No assignment of benefits; exemptions...79 (d) Federal Income Tax Withholding...79 43:21-16. Penalties...80 (a) For making false statement or representation, or failing to disclose material fact to obtain or increase benefit or other payment...80 (b) (1) For making false statement or representation or failing to disclose material fact to prevent or reduce payment of benefits, or to avoid subject status or to avoid or reduce contribution or other payments; for willfully failing or refusing to furnish reports, or to produce or permit inspection or copying of records...80 (2) For failing to submit a report required under Section 6 (b)...80 (c) For willful violation of any provision of the law or any commission rule or regulation where no penalty is prescribed...80 (d) (1) For collecting benefits through nondisclosure or misrepresentation of material fact or for any other reason...81 (2) Interstate and cross-offset of state and federal unemployment benefits...81 (A) Overpayments recovered for or by another state...81 ix

(e) (f) (g) (h) (B) Overpayment recovered by an offset from benefits payable under a federal program...81 For failing to remit worker contributions, or filing, or causing to be filed any false or fraudulent report or statement with intent to defraud or to evade payment of liability...82 For aiding or abetting any person to obtain or increase benefits to which not entitled...82 Investigating staff...82 Employers or employer representatives knowingly making false statements or representations...82 43:21-17. Representation in Court...83 (a) Civil action to enforce provisions...83 (b) Administrative proceedings...83 43:21-18. Nonliability of State...83 43:21-19. Definitions...83 (a) (1) Annual payroll...83 (2) Average annual payroll...83 (b) Benefits...84 (c) (1) Base year...84 (2) For individuals filing claims after a period compensable under the TDI law...84 (3) For individual filing claims after a period compensable under the Workers Compensation Law...85 (d) Benefit year - valid claim...85 (e) (1) Division...85 (2) Controller...85 (f) Contributions...85 (g) Employing unit...86 (h) Employer...86 (1) By direct employment...86 (2) By acquisition of organization, trade, etc., from subject employer...86 (3) By acquisition of organization, trade, etc., from non-subject entity...86 (4) By common ownership or control of two or more units...86 (5) Employment by State hospitals and institutions of higher education...86 (6) Employment by non-profit organizations...86 (7) Employment based on federal tax offset...87 (8) (Deleted) (9) (Deleted) (10) (Deleted) (11) Employment based on federal law (FUTA)...87 (12) Employment based on agricultural labor...87 (13) Employment based on domestic service...87 x

(14) Subject entity which has not ceased to be employer, or for period of elected coverage...87 (i) (1) Employment...87 (A) Service for remuneration or under contract of hire...87 (B) Service for State and political subdivisions...87 (C) Service for non-profit organizations...88 (D) Service excluded from coverage as employment under (1)(B) and (C)...88 (E) Service outside United States by U.S. citizen for American employer...89 (F) Service on American vessels or aircraft...89 (G) Service required to be covered by Federal law...89 (H) United States defined...90 (I) Service in agricultural labor...90 (J) Domestic service...91 (2) Employment - entire service included...91 (A) Service is localized in this state...91 (B) Service is not localized in any state but some of the service is performed in this state...91 (3) New Jersey services included where 2 (A) or (B) not applicable, except when such services are covered by law of other state or Federal Government...91 (4) Services entirely without New Jersey, not covered by the law of any other state or Federal Government, is coverable in New Jersey...91 (5) Service deemed localized in a state...91 (A) Service performed entirely within state...91 (B) Service performed within and without state...92 (6) Services for remuneration deemed employment, unless and until (certain criteria are met)...92 (A) Individual is free from control or direction over performance of service...92 (B) Such service is outside usual course or place of business...92 (C) Individual engaged in an independent occupation...92 (7) Exempt employment...92 (A) Agricultural labor which does not meet basic criteria...92 (B) Domestic service in private home which does not meet basic criteria...92 (C) Service performed for son, daughter or spouse and by minor child...92 (D) Service performed for New Jersey, political subdivision thereof, etc. which does not constitute employment...92 xi

(E) Service performed for other State or political sub-division thereof, etc. which does not constitute employment...93 (F) Service for United States or instrumentalities...93 (G) Services for fraternal beneficiary societies, etc., operating under lodge system...93 (H) Services as member of board of directors, etc., of bank, building and loan, etc., if not principal employment...93 (I) Service covered by federal unemployment insurance...93 (J) Service by agents of insurance or investment companies compensated wholly on commission basis...93 (K) Service by real estate salesmen or brokers compensated wholly on commission basis...93 (L) (M) Services performed for national veterans organization...94 Service for first ten weeks in calendar year for owner or operator of place of entertainment by entertainer or name band musician...94 (N) Service for union locals where remuneration is less than $1,000.00 per calendar year...94 (O) Services by home-to-home salespersons...94 (P) Service for foreign government...94 (Q) Service for instrumentality of foreign government...94 (R) Service for international organization...94 (S) Service under reciprocal arrangement...94 (T) Service by student and spouse of student...94 (U) Service of student in work-study program...95 (V) Service in hospital by patient, student nurse or intern...95 (W) Service by mutual benefit association agents compensated wholly on commission basis...95 (X) Service by certain operators of motor freight vehicles...95 (Y) Service by certain certified shorthand reporters...95 (Z) Service by certain outside travel agents...95 (8) Service of individual in both included and non-included employment...95 (9) Limousine franchise coverage...96 (A) Franchise is incorporated...96 (B) Subject to interstate commerce regulations...96 (C) Agreement between Franchise and Franchisor...96 (D) Employer registered with the Department of Labor...96 (j) Employment office...96 (k) (Deleted) (l) State......96 (m) Unemployment...96 (1) Unemployed individual...96 (A) Individual not employed full-time; corporate officer...96 (B) Receiving self-employment assistance...96 xii

(2) Remuneration for benefit years commencing on or after July 1, 1961; excludes moneys paid by county to Board worker on election day...96 (3) Beginning of week of unemployment...97 (n) Unemployment compensation administration fund...97 (o) Wages...97 (p) Remuneration...97 (q) Week...97 (r) Calendar quarter...97 (s) Investment company...97 (t) Base week...97 (1) (Deleted) (2) Base week on or after January 1, 1996 and before January 1, 2001...97 (3) Base week on or after January 1, 2001...98 (u) Average weekly wage...98 (v) Initial determination...98 (w) Last date of employment...98 (x) Most recent base year employer...99 (y) (1) Education institution...99 (A) Organized courses of study or training...99 (B) Approved, licensed or issued a permit to operate by State Department of Education...99 (C) Offers courses of academic, technical, trade or preparatory nature...99 (2) Institution of higher education...99 (A) Admits high school graduates or recognized equivalency of such certificate...99 (B) Legally authorized program of education (C) beyond high school...99 Provides a program which awards a bachelor s or higher degree or full credit toward such a degree or training gainful employment...99 (D) Public or other non-profit institution...99 (z) Hospital...99 43:21-19.1. (Blank) 43:21-19.2. Effective date and application of Act...100 43:21-19.3. Retroactive exclusion of certain agents...100 43:21-19.4. Gratuities or Tips; Remuneration in Lieu of...100 (a) Percentage of amount received by employer for providing facility or services...100 (b) Number persons receiving service...100 (c) Numbers of workers providing service...100 43:21-19.5. (Repealed) 43:21-19.6. South Jersey Port Commission Considered Employer...101 43:21-20. (Repealed) xiii

43:21-20.1. Less than Full-time Workers...101 43:21-20.2. Effective date...101 43:21-21. Reciprocal Benefit Arrangements...101 (a) For paying cumulative potential benefit rights through a single agency...101 (b) For tracking in-state and out-of-state wage credits for benefit purposes; reimbursement to and from the fund...101 (c) For covering in-state and out-of-state maritime services in a single State...102 (d) For transferring contributions paid to the wrong state...102 (e) For combining services by an individual for a single employing (f) unit in more than one State...102 For reciprocal use of facilities and services for taking claims and paying benefits under the New Jersey law and a similar law of a foreign government...103 43:21-22. Saving Clause...103 43:21-23. Separability of Provisions...103 43:21-24. (Repealed) 43:21-24.1. Sale of Surplus, Obsolete or Unsuitable Property...103 43:21-24.2. Contracts for Payments under Federal Temporary Compensation Act of 1958...103 43:21-24.3. Benefit Payments Not Chargeable to Employers Accounts...104 43:21-24.4. Agreements with United States; Payments; Reimbursement...104 (a) (b) Authorized agent will make payment to individuals eligible under any law of the United States...104 Will receive reimbursement from the Federal government for such payment as described in (a)...104 NEW JERSEY EXTENDED BENEFIT LAW 43:21-24.11. Definitions...105 a. Extended benefit period...105 (1) Begins...105 (2) Ends...105 b. (Deleted by amendment.) c. (Deleted by amendment.) d. State on indicator...105 e. State off indicator...105 f. Rate of insured unemployment computation...106 g. Regular benefits...106 h. Extended benefit...106 i. Eligibility period...106 j. Exhaustee...106 (1) Deemed to have received all regular benefits available...106 (2) Benefit year expired...106 xiv

(3) (a) No rights under Railroad Unemployment Insurance Act, Trade Expansion Act of (b) 1962, Automotive Products Trade Act of 1965...106 Not seeking benefits under unemployment law of Canada...106 k. State law...107 43:21-24.12. Effect of State Law Provisions Relating to Regular Benefits on Claims for, and the Payment and Charging of, Extended Benefits...107 43:21-24.13. Eligibility Requirements for Extended Benefits...107 43:21-24.14. Weekly Extended Benefit Rate...108 43:21-24.15. Total Extended Benefit Amount...108 43:21-24.16. Beginning and Termination of Extended Benefit Period...108 43:21-24.17. Short Title...109 43:21-24.18. Cessation of Extended Benefits When Paid Under an Interstate Claim Interstate Claim in a State Where an Extended Benefit Period Is Not In Effect...109 43:21-24.19. Ineligibility for Benefits; failure to accept offer of, apply for or actively engage in seeking suitable work or dismissal for misconduct...109 43:21-24.20. Inapplicability of C.43:21-24.19...111 43:21-24.21. Definitions for purposes of Emergency Unemployment Benefits Program...112 43:21-24.22. Provision of weekly emergency unemployment benefits...113 43:21-24.23. Employer s account not charged; exceptions...113 43:21-24.24. Conditions for payment...113 43:21-24.25. Administrative actions to ensure proper payment of emergency unemployment benefits...114 43:21-24.26. Definitions relative to Emergency Unemployment Benefits Program (December 30, 2001)...114 43:21-24.27 Emergency unemployment benefits...115 43:21-24.28 Charging of employer s account for emergency unemployment benefits...115 43:21-24.29 Payment of emergency unemployment benefits...116 43:21-24.30 Administrative actions to ensure payment to eligible individuals...116 NEW JERSEY EMPLOYMENT AND WORKFORCE DEVELOPMENT ACT 43:21-57. Legislative findings and declarations...117 43:21-58. Definitions...118 43:21-59. Counseling, Employability Development Plan...118 a. Testing and assessment...119 b. Evaluations...119 (1) Eligibility for additional benefits under section 5...119 (2) Remedial education...119 c. Provision of information regarding labor demand occupations...119 d. Provision of information regarding services and benefits...119 e. Development of Employability Development Plan...119 43:21-60. Eligibility for additional benefits...120 xv

a. Permanent termination...120 b. Eligible for unemployment benefits...120 c. Counseling...120 d. (1) 60 days after termination or 30 days after notice or 30 days after development of Employability Development Plan...120 (2) Entry into education and training...120 (3) Satisfactory progress...120 e. Vocational training enrollment requirement...120 (1) Labor demand occupation...120 (2) Substantial enhancement of marketable skills...120 (3) Approved service provider...120 (4) On-the-job training...120 f. Full-time vocational training, remedial education or combination...121 g. Reasonable expectation of training completion...121 43:21-61. Additional benefits...121 43:21-62. Notice of available benefits to be provided under layoff or notice of pending layoff...122 a. Provision of notice of services and benefits...122 (1) Unemployment compensation applications...122 (2) Response team...122 (3) 60 days after date of act...122 b. Commencement of training or education prior to employment termination...122 43:21-63. Allocation of moneys for education, training...122 43:21-64. Limit on total additional benefits...123 a. 1.5% of amount of balance in unemployment fund limitations...123 b. Department s requirements during periods in which commission prohibits additional individuals receiving benefits...123 (1) Notice required...123 (2) Counseling required...123 (3) Provision for additional benefits after period of prohibition ends...123 c. Additional benefits for individual s already receiving benefits...123 43:21-65. Rules and regulations...123 43:21-67. Short title, Self-Employment Assistance and Entrepreneurial Training Act...123 43:21-68. Findings, declarations relative to small business...124 43:21-69. Definitions relative to self-employment assistance...124 43:21-70. Self-employment assistance allowance; conditions...125 4. a. Qualified for regular benefits and identified as likely to exhaust through worker profiling system; services and information provided...125 b. Amount of self-employment assistance payable...125 c. Conditions and interval of payment...125 d. Limitation on number of individuals receiving self-employment assistance...126 xvi

e. Charging of self-employment assistance...126 f. Beginning and ending of benefits program...126 43:21-71. Rules, regulations...126 SUPPLEMENTARY LEGISLATION 34:1A-1. Department of Labor and Industry Act of 1948 34:1A-35. (Those portions of the statute pertinent to the administration of the Unemployment Compensation and Temporary Disability Disability Benefits laws)...127 Wage Reporting Act...141 Garnishment of Unemployment Insurance Benefits...143 New Jersey Gross Income Tax Credit for Excess Contributions...143 Child Support Obligations...144 Unemployment Compensation Interest Repayment Fund...145 Agricultural Worker Legislation...146 xvii

UNEMPLOYMENT COMPENSATION LAW 43:21-1. Short title This chapter shall be known and may be cited as the "unemployment compensation law. 43:21-2. Declaration of state public policy As a guide to the interpretation and application of this chapter, the public policy of this state is declared to be as follows: economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is therefore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crushing force upon the unemployed worker and his family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance. The legislature, therefore, declares that in its considered judgment the public good, and the general welfare of the citizens of this state requires the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed after qualifying periods of employment. 43:21-3. Benefits (a) Payment of benefits. All benefits shall be promptly paid from the fund in accordance with such regulations as may be prescribed hereunder. (b) Weekly benefits for unemployment. With respect to an individual's benefit year commencing on or after July 1, 1961, such individual, if eligible and unemployed (as defined in subsection (m) of R.S.43:21-19), shall be paid an amount (except as to final payment) equal to his weekly benefit rate less any remuneration, other than remuneration from self-employment paid to an individual who is receiving a self-employment assistance allowance, paid or payable to him for such week in excess of 20% of his weekly benefit rate (fractional part of a dollar omitted) or $5.00, whichever is the greater; provided that such amount shall be computed to the next lower multiple of $1.00 if not already a multiple thereof. (c) Weekly benefit rate. 1

(1) With respect to an individual whose benefit year commences after September 30, 1984, his weekly benefit rate under each determination shall be 60% of his average weekly wage, subject to a maximum of 56 2/3 % of the Statewide average weekly remuneration paid to workers by employers subject to this chapter (R.S.43:21-1 et seq.), as determined and promulgated by the Commissioner of Labor; provided, however, that such individual's weekly benefit rate shall be computed to the next lower multiple of $1.00 if not already a multiple thereof. (2) Dependency benefits. (A) With respect to an individual whose benefit year commences after September 30, 1984, the individual's weekly benefit rate as determined in paragraph (1) of this subsection (c) will be increased by 7% for the first dependent and 4% each for the next two dependents (up to a maximum of three dependents), computed to the next lower multiple of $1.00 if not already a multiple thereof, except that the maximum weekly benefit rate payable for an individual claiming dependency benefits shall not exceed the maximum amount determined under paragraph (1) of this subsection (c). (B) For the purposes of this paragraph (2), a dependent is defined as an individual's unemployed spouse or an unemployed unmarried child (including a stepchild or a legally adopted child) under the age of 19 or an unemployed unmarried child, who is attending an educational institution as defined in subsection (y) of R.S.43:21-19 on a full-time basis and is under the age of 22. If an individual's spouse is employed during the week the individual files an initial claim for benefits, this paragraph (2) shall not apply. If both spouses establish a claim for benefits in accordance with the provisions of this chapter (R.S.43:21-1 et seq.), only one shall be entitled to dependency benefits as provided in this paragraph (2). (C) Any determination establishing dependency benefits under this paragraph (2) shall remain fixed for the duration of the individual's benefit year and shall not be increased or decreased unless it is determined by the division that the individual wrongfully claimed dependency benefits as a result of false or fraudulent representation. (D) Notwithstanding the provisions of any other law, the division shall use every available administrative means to insure that dependency benefits are paid only to individuals who meet the requirements of this paragraph (2). These administrative actions may include, but shall not be limited to, the following: (i) All married individuals claiming dependents under this paragraph (2) shall be required to provide the social security number of the individual's spouse. If the individual indicates that the spouse is unemployed, the division shall match the social security number of the spouse against available wage records to determine whether earnings were reported on the last quarterly earnings report filed by employers under R.S.43:21-14. If earnings were reported, the division shall contact in writing the last employer to determine whether the spouse is currently employed. 2

(ii) Where a child is claimed as a dependent by an individual under this paragraph (2), the individual shall be required to provide to the division the most recent federal income tax return filed by the individual to assist the division in verifying the claim. (3) For the purposes of this subsection (c), the "Statewide average weekly remuneration paid to workers by employers" shall be computed and determined by the Commissioner of Labor on or before September 1 of each year on the basis of one-fifty-second of the total remuneration reported for the preceding calendar year by employers subject to this chapter, divided by the average of the number of workers reported by such employers, and shall be effective as to benefit determinations in the calendar year following such computation and determination. (d) Maximum total benefits. (1) (A) (Deleted by amendment, P.L. 2003, c.107.) (B) (i) With respect to an individual for whom benefits shall be payable for benefit years commencing on or after July 1, 1986, and before July 1, 2003 as provided in this section, the individual shall be entitled to receive a total amount of benefits equal to three-quarters of the individual's base weeks with all employers in the base year multiplied by the individual's weekly benefit rate; but the amount of benefits thus resulting under that determination shall be adjusted to the next lower multiple of $1.00 if not already a multiple thereof. With respect to an individual for whom benefits shall be payable for benefit years commencing on or after July 1, 2003 as provided in this section, the individual should be entitled to receive a total amount of benefits equal to the number of the individual s base weeks with all employers in the base year multiplied by the individual s weekly benefit rate; but the amount of benefits thus resulting under that determination shall be adjusted to the next lower multiple of $1.00 if not already a multiple thereof. (ii) Except as provided pursuant to paragraph (1) of subsection (c) of R.S.43:21-7, benefits paid to an individual for benefit years commencing on or after July 1, 1986 shall be charged against the accounts of the individual's base year employers in the following manner: Each week of benefits paid to an eligible individual shall be charged against each base year employer's account in the same proportion that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during the base year. (iii) (Deleted by amendment, P.L.1997, c.255.) (2) No such individual shall be entitled to receive benefits under this chapter (R.S.43:21-1 et seq.) in excess of 26 times his weekly benefit rate in any benefit year under either of subsections (c) and (f) of R.S.43:21-4. In the event that any individual qualifies for benefits under both of said subsections during any benefit year, the maximum total amount of benefits payable under said subsections combined to such individual during the benefit year shall be one and one-half times the maximum amount of benefits payable under one of said subsections. 3

(3) (Deleted by amendment, P.L.1984, c.24.) Amended 1938, c.396; 1939, c.94, s.1; 1940, c.247, s.1; 1945, c.72; 1948, c.110, s.19; 1950, c.172, s.1; 1952, c.187, s.1; 1954, c.248; 1955, c.203, s.1; 1961, c.43, s.1; 1967, c.30, s.1; 1967, c.30, title amended 1967, c.286, s.12; 1974, c.86, s.1; 1977, c.307, s.1; 1978, c.18; 1984, c.24, s.1; 1995, c.394, s.6; 1997, c.255, s.1. 43:21-4. Benefit eligibility conditions An unemployed individual shall be eligible to receive benefits with respect to any week only if: (a) The individual has filed a claim at an unemployment insurance claims office and thereafter continues to report at an employment service office or unemployment insurance claims office, as directed by the division in accordance with such regulations as the division may prescribe, except that the division may, by regulation, waive or alter either or both of the requirements of this subsection as to individuals attached to regular jobs, and as to such other types of cases or situations with respect to which the division finds that compliance with such requirements would be oppressive, or would be inconsistent with the purpose of this act; provided that no such regulation shall conflict with subsection (a) of R.S.43:21-3. (b) The individual has made a claim for benefits in accordance with the provisions of subsection (a) of R.S.43:21-6. (c) (1) The individual is able to work, and is available for work, and has demonstrated to be actively seeking work, except as hereinafter provided in this subsection or in subsection (f) of this section. (2) The director may modify the requirement of actively seeking work if such modification of this requirement is warranted by economic conditions. (3) No individual, who is otherwise eligible, shall be deemed ineligible, or unavailable for work, because the individual is on vacation, without pay, during said week, if said vacation is not the result of the individual's own action as distinguished from any collective action of a collective bargaining agent or other action beyond the individual's control. (4) (A) Subject to such limitations and conditions as the division may prescribe, an individual, who is otherwise eligible, shall not be deemed unavailable for work or ineligible because the individual is attending a training program approved for the individual by the division to enhance the individual's employment opportunities or because the individual failed or refused to accept work while attending such program. (B) For the purpose of this paragraph (4), any training program shall be regarded as approved by the division for the individual if the program and the individual meet the following requirements: 4

(i) The training is for a labor demand occupation and is likely to enhance the individual's marketable skills and earning power; (ii) The training is provided by a competent and reliable private or public entity approved by the Commissioner of Labor pursuant to the provisions of section 8 of the "1992 New Jersey Employment and Workforce Development Act," P.L.1992, c.43 (C.34:15D-8); (iii) The individual can reasonably be expected to complete the program, either during or after the period of benefits; (iv) The training does not include on the job training or other training under which the individual is paid by an employer for work performed by the individual during the time that the individual receives benefits; and (v) The individual enrolls in vocational training, remedial education or a combination of both on a full-time basis. (C) If the requirements of subparagraph (B) of this paragraph (4) are met, the division shall not withhold approval of the training program for the individual for any of the following reasons: (i) The training includes remedial basic skills education necessary for the individual to successfully complete the vocational component of the training; (ii) The training is provided in connection with a program under which the individual may obtain a college degree, including a post-graduate degree; (iii) The length of the training period under the program; or (iv) The lack of a prior guarantee of employment upon completion of the training. (D) For the purpose of this paragraph (4), "labor demand occupation" means an occupation for which there is or is likely to be an excess of demand over supply for adequately trained workers, including, but not limited to, an occupation designated as a labor demand occupation by the New Jersey Occupational Information Coordinating Committee pursuant to the provisions of subsection h. of section 1 of P.L.1987, c.457 (C.34:1A-76) or section 12 of P.L.1992, c.43 (C.34:1A-78). (5) An unemployed individual, who is otherwise eligible, shall not be deemed unavailable for work or ineligible solely by reason of the individual's attendance before a court in response to a summons for service on a jury. (6) An unemployed individual, who is otherwise eligible, shall not be deemed unavailable for work or ineligible solely by reason of the individual's attendance at the funeral of an immediate family member, provided that the duration of the attendance does not extend beyond a two-day period. 5

For purposes of this paragraph, "immediate family member" includes any of the following individuals: father, mother, mother-in-law, father-in-law, grandmother, grandfather, grandchild, spouse, child, foster child, sister or brother of the unemployed individual and any relatives of the unemployed individual residing in the unemployed individual's household. (7) No individual, who is otherwise eligible, shall be deemed ineligible or unavailable for work with respect to any week because, during that week, the individual fails or refuses to accept work while the individual is participating on a full-time basis in self-employment assistance activities authorized by the division, whether or not the individual is receiving a self-employment allowance during that week. (8) Any individual who is determined to be likely to exhaust regular benefits and need reemployment services based on information obtained by the worker profiling system shall not be eligible to receive benefits if the individual fails to participate in available reemployment services to which the individual is referred by the division or in similar services, unless the division determines that: (A) The individual has completed the reemployment services; or (B) There is justifiable cause for the failure to participate, which shall include participation in employment and training, self-employment assistance activities or other activities authorized by the division to assist reemployment or enhance the marketable skills and earning power of the individual and which shall include any other circumstance indicated pursuant to this section in which an individual is not required to be available for and actively seeking work to receive benefits. (9) An unemployed individual, who is otherwise eligible, shall not be deemed unavailable for work or ineligible solely by reason of the individual s work as a board worker for a county board of elections on an election day. (d) With respect to any benefit year commencing before January 1, 2002, the individual has been totally or partially unemployed for a waiting period of one week in the benefit year which includes that week. When benefits become payable with respect to the third consecutive week next following the waiting period, the individual shall be eligible to receive benefits as appropriate with respect to the waiting period. No week shall be counted as a week of unemployment for the purposes of this subsection: (1) If benefits have been paid, or are payable with respect thereto; provided that the requirements of this paragraph shall be waived with respect to any benefits paid or payable for a waiting period as provided in this subsection; (2) If it has constituted a waiting period week under the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et seq.); (3) Unless the individual fulfills the requirements of subsections (a) and (c) of this section; 6

(4) If with respect thereto, claimant was disqualified for benefits in accordance with the provisions of subsection (d) of R.S.43:21-5. The waiting period provided by this subsection shall not apply to benefit years commencing on or after January 1, 2002. An individual whose total benefit amount was reduced by the application of the waiting period to a claim which occurred on or after January 1, 2002 and before the effective date of P.L.2002, c.13, shall be permitted to file a claim for the additional benefits attributable to the waiting period in the form and manner prescribed by the division, but not later than the 180th day following the effective date of P.L.2002, c.13 unless the division determines that there is good cause for a later filing. (e) (1) (Deleted by amendment, P.L.2001, c.17). (2) With respect to benefit years commencing on or after January 1, 1996 and before January 7, 2001, except as otherwise provided in paragraph (3) of this subsection, the individual has, during his base year as defined in subsection (c) of R.S.43:21-19: (A) Established at least 20 base weeks as defined in paragraph (2) of subsection (t) of R.S.43:21-19; or (B) If the individual has not met the requirements of subparagraph (A) of this paragraph (2), earned remuneration not less than an amount 12 times the Statewide average weekly remuneration paid to workers, as determined under R.S.43:21-3(c), which amount shall be adjusted to the next higher multiple of $100.00 if not already a multiple thereof; or (C) If the individual has not met the requirements of subparagraph (A) or (B) of this paragraph (2), earned remuneration not less than an amount 1,000 times the minimum wage in effect pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) on October 1 of the calendar year preceding the calendar year in which the benefit year commences, which amount shall be adjusted to the next higher multiple of $100.00 if not already a multiple thereof. (3) With respect to benefit years commencing before January 7, 2001, notwithstanding the provisions of paragraph (2) of this subsection, an unemployed individual claiming benefits on the basis of service performed in the production and harvesting of agricultural crops shall, subject to the limitations of subsection (i) of R.S.43:21-19, be eligible to receive benefits if during his base year, as defined in subsection (c) of R.S.43:21-19, the individual: (A) Has established at least 20 base weeks as defined in paragraph (2) of subsection (t) of R.S.43:21-19; or (B) Has earned 12 times the Statewide average weekly remuneration paid to workers, as determined under R.S.43:21-3(c), raised to the next higher multiple of $100.00 if not already a multiple thereof, or more; or (C) Has performed at least 770 hours of service in the production and harvesting of agricultural crops. 7