On July 2, Governor Chris Christie signed a bill (S1813) to reduce the unemployment insurance tax rates that will be imposed on employers during fiscal year 2011. The bill is designed to avert an automatic per employee increase up to $683 on July 1, 2010. Instead, the bill sets an increase of $130 per employee.
The bill also (1) creates a three-tiered structure (misconduct, severe misconduct and gross misconduct), which either prohibit payment of benefits or extend the waiting period before benefits can be paid, and (2) establishes an Unemployment Insurance Fund Task Force to study and assess the fund’s problems and recommend solutions. Both of these aspects of the bill directly resulted from Governor Christie’s prior recommendations (see the March 2010 issue of the New Jersey eAuthority).