Trenton – The Senate Labor Committee today advanced legislation sponsored by Senators Fred Madden and Troy Singleton that would allocate sufficient funds to the unemployment compensation fund from federal government assistance and halt increases in employer unemployment taxes related to benefits paid during the COVID-19 state of emergency.

 

The bill, S-733, would annually allocate available monies from federal assistance to the unemployment compensation fund to pay back any balance in federal unemployment insurance loan advances. The bill would require the C0mmissioner of Labor and Workforce Development to submit a report to the Legislature annually after any deposit of federal government assistance into the fund.

 

“Economic insecurity due to unemployment is a serious problem to the health, morals and welfare of New Jerseyans. The COVID-19 pandemic caused mass layoffs and drained the unemployment fund,” said Senator Madden (D- Gloucester/Camden), chairman of the Senate Labor Committee. “Unemployment insurance helped many workers during the height of the pandemic; replenishing the fund should not now be a financial burden on businesses that are just starting to recover.”

 

“The past two years have been an extremely difficult time for many of our state’s businesses who are just beginning to reestablish their economic footing,” said Senator Singleton (D-Burlington). “Many employers received federal financial assistance during the height of the COVID-19 pandemic and applying additional taxes in present-day to pay back the benefits they needed to survive would be yet another untimely hardship on them. It is our hope that with this legislation, we can ease the burden it may have on employers and ensure that they are covered, financially.”

 

The bill was released from committee by a vote of 5-0.