NJ Law Will Allow More Striking Workers To Collect Unemployment

NEW JERSEY — Employers in New Jersey have one less way to “wait out” striking workers thanks to a new law that was signed last week, advocates say.

Gov. Phil Murphy signed A4772/S3215 into law on April 24. The legislation closes loopholes that currently prevent workers participating in labor disputes from receiving access to unemployment insurance (UI) benefits, the governor stated.

According to Murphy’s office, the bill will amend existing law and takes effect immediately. Here’s what it will do:

• Permit UI benefits to be distributed to workers during an employer lockout, even if a strike did not immediately precede the lockout
• Decrease the timeframe from 30 days to 14 days following a strike that UI benefits are disqualified, while allowing for benefits to be paid immediately regardless of the timeframe if replacement workers are hired on either a permanent or temporary basis
• Clarify that there is no disqualification if an issue in the labor dispute is the failure of the employer to comply with an agreement between the parties

The new law will apply to all UI benefit claims filed on or after Jan. 1, 2022.

Assemblyman Anthony Verrelli, one of the bill’s sponsors, said the new law will encourage employers to come to the bargaining table sooner, something that is beneficial for all sides.

“Often what will happen is that an employer will simply ‘wait out’ striking workers,” Verrelli said. “Those workers are not earning a paycheck during that strike and therefore can only sustain their efforts for a limited amount of time.”

Murphy said that unemployment insurance benefits should be a “universal right” for people who have recently 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,” the governor added.

Sen. Paul Sarlo, chair of the Senate Budget Committee said the new law will be “beneficial to employees and employers alike.” But at least one pro-business group has raised an eyebrow at the new law.

“Unfortunately, this law could actually incentivize strikes and harm employers, such as nonprofit healthcare entities, by requiring them to pay unemployment insurance and staff salaries during labor disputes when they hire mandated replacement workers – regardless of whether those workers are permanent or temporary replacements,” said Alexis Bailey, vice president of government affairs at the New Jersey Business and Industry Association.

Learn more about UI eligibility in New Jersey here.

Send news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.