New Jersey Employers Waiting for Guidance on Unemployment Compensation Law

Amendments to New Jersey’s Unemployment Compensation Law (UCL) are scheduled to take effect on July 31, 2023. One of the most significant changes to the UCL is that employers will now need to electronically report certain “separation information” to the New Jersey Department of Labor and Workforce Development (NJDOL) immediately after an employee is separated. The NJDOL has explained that the purpose of the new law is to expedite claim processing. The new law does not specify what “separation information” is required and how employers are to submit the information, and instead directed the NJDOL to issue guidance on these issues.

Quick Hits

• Effective July 31, 2023, New Jersey employers will be required to electronically report certain “separation information” to the NJDOL immediately after an employee is separated.
• The NJDOL has not yet specified what “separation information” is required.
• The NJDOL has provided instructions on how employers may register for the department’s online reporting system.

Despite these changes that are taking effect on July 31, the NJDOL has not yet released the required guidance to employers. Rather, the NJDOL’s responses to frequently asked questions state that the NJDOL “is still developing the new infrastructure that will enable this new requirement.” At this time, it is anticipated that the separation information required from employers will remain the same as is currently required by forms BC-2 (Request for Wage Separation Information), BC-28 (Request for Separation Information), and BC-3E (Notice to Employer of Monetary Determination and Request for Separation Information), but employers will have to wait for the official guidance.

The NJDOL has provided instructions on how employers may register for the online reporting system. According to the NJDOL, employers will need to create an online account (if one does not exist already) with the state’s Employer Access system. This account will provide employers with updates from the NJDOL’s Division of Unemployment Insurance via email. Employers that do not have an Employer Access account already will need to input the unique codes provided by the NJDOL on their 2023 annual combined assessment bill sent at the end of July 2023. Additionally, employers that do not have the unique code provided on the annual combined assessment bill will need to select “no” when asked whether they have the authorization code issued by the NJDOL.

Ogletree Deakins’ Morristown office will continue to monitor the NJDOL’s activities and report on the New Jersey and Wage and Hour blogs when an updated form or instructions for the department’s new online infrastructure are provided.

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