Murphy Signs Bill Allowing Striking Workers To Collect Unemployment Sooner

By Christian Wade | The Center Square contributor, The Center Square New Jersey

April 25, 2023

(The Center Square) — New Jersey workers will be allowed to collect unemployment benefits sooner if they go on strike, under a bill signed into law by Gov. Phil Murphy.

The state Assembly approved the Democratic-led measure in March on a largely party-line vote, with Republicans opposing the proposal. It shortens the window to get unemployment benefits if workers in New Jersey go on strike or are locked out of their job because of a labor dispute from 30 to 14 days, among other changes.

Murphy said the new law addresses "loopholes" in the state's unemployment insurance system and argued UI benefits should be a "universal right for individuals who have lost their jobs, are unable to find work, or are currently in the middle of a labor dispute."

"These benefits are crucial to allow individuals going through this process the support they need to continue to take care of themselves and their families during difficult times," Murphy said in a statement.

"The law takes effect immediately and will apply to all UI benefit claims filed on or after January 1, 2022," according to the Murphy administration.

The bill's primary sponsor, state Assemblyman Anthony Verrelli, D-Hopewell, said during labor disputes, employers often "wait out" workers who they know are losing money every day they spend on strike. He said the legislation will restore balance to contract negotiations and provide support for workers on the picket lines.

"Those workers are not earning a paycheck during that strike and therefore can only sustain their efforts for a limited amount of time," he said. "This bill will encourage an employer to come to the bargaining table sooner and that’s beneficial for all sides."

Not surprisingly, labor unions praised Murphy for signing the bill, which they said are among the strictest unemployment benefit rules in the nation.

"Workers and their families often struggle financially when they go on strike to protest injustice in the workplace," Charles Wowkanech, president of the New Jersey State AFL-CIO, said in a statement. "Going on strike is a very difficult decision, but it is sometimes necessary when workers are pushed to their limits."

Approval of the new law comes amid a high-profile labor dispute in New Jersey, with more than 9,000 faculty members at Rutgers University going on strike earlier this month after contract negotiations broke down. Murphy intervened in the dispute, hosting negotiations between the two sides.

Last week, the university and three unions representing faculty members reached a tentative agreement to boost wages and other concessions. Still, the unions have warned they could return to the picket lines if they don't agree to the final contract.

The focus of the work of The Center Square New Jersey is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.