Official Site of The State of New Jersey

Under the Unemployment Compensation Law, you are required to pay unemployment insurance taxes and to provide the Division of Unemployment Insurance with certain information about your employees if they file claims for benefits. All information you give to the Division is confidential and privileged. You should be familiar with the provisions of the law relating to basic and continuing qualifications for benefits and to the amount of money a claimant may receive.

It is important that you give your separated employees Form BC-10, “Instructions for Claiming Unemployment Benefits,” showing your correct name, your New Jersey Employer Identification Number, and the address to which a request for information should be mailed. You can get supplies of this separation notice by contacting the Bureau of Program Services and Standards at 609-292-2347.

The Unemployment Compensation Law provides some income to an unemployed person in the interval between one period of employment and another. The amount of unemployment insurance benefits that a claimant is potentially eligible to receive is directly related to his/her actual earnings during the base-year (see below for base-year definition). To be monetarily eligible for benefits, the claimant must have had wages in covered employment in each of 20 base weeks or, in the alternative, have earned during the base period, a specific dollar amount or more in remuneration.

On January 29, 2001, Chapter 17, P.L. 2001, an act modifying certain New Jersey unemployment and disability insurance benefit eligibility requirements, was signed into law. The law simplified the basic eligibility requirements. Effective January 1, 2001, the base week amount is equal to 20 times the state hourly minimum wage ($220 in 2021 and $240 in 2022), and the alternate earnings test is equal to 1,000 times the state hourly minimum wage ($12,000 in 2022). [Previously, the base week amount and the alternate earnings test were tied to the Statewide Average Weekly Wage (the base week amount was equal to 20% of the SAWW; the alternate earnings test was equal to 12 times the SAWW) and were recalculated annually.] The 2001 legislation ties the base week amount and the alternate earnings test to the state hourly minimum wage, and will change only when the state minimum hourly wage changes.

In addition, in order to be entitled to receive benefits for any week claimed, the claimant must not be subject to any of the disqualification or ineligibility conditions listed here.

When a person becomes unemployed and files a claim for benefits, his/her monetary eligibility is determined by the wage information available in our central computer. Employers submit the wage information quarterly via Form WR-30, “Employer Report of Wages Paid.” The claimant’s base-year period is established at this time. The regular base year is defined as the first four of the last five completed calendar quarters. All claims are initially tested for monetary validity using this regular base-year period. The wages compensating this four-quarter period form the basis for the computation of benefit credit. The chart lists the annual calendar quarters and the corresponding base-year for unemployment claims:

For claims originally determined invalid under the regular base-year period, there are two alternative base-year periods that can be used to determine monetary eligibility. Alternative Base Year #1 consists of the four most recently completed calendar quarters preceding the date of claim, and Alternative Base Year #2 consists of the three most recently completed calendar quarters preceding the date of claim and weeks in the filing quarter up to the date of the claim. Alternative Base Year #2 can be used only when the claim is still invalid after testing validity using the Regular and Alternative #1 base years.

As soon as a claim is filed, all of the claimant’s base-year employers are notified of the Division’s initial monetary determination on the Form BC-3E, “Notice to Employer of Monetary Determination.” Form BC-3E.1, “Request for Separation Information,” attached to Form BC-3E, must be completed and returned to the Division only if:

1. The claimant was separated for reason other than lack of work;
2. The claimant is receiving a company pension;
3. The claimant received wages for a period after his/her last day of work (e.g., vacation pay, severance pay, payment in lieu of notice, etc.);
4. The claimant’s separation is temporary, and the claimant has a definite date of recall.

NOTE: If the claimant worked for you only during the lag period—that is, the calendar quarter in which he/she filed a new claim and the immediately preceding calendar quarter—the Division will send you a Form BC-28, “Request for Separation Information.” You must complete this form in accordance with the instructions provided and return it within 10 days from the date of mailing.

It is important to give complete details about the reason a person is no longer in your employ when requested. The Division will determine, from the facts you report about the separation, whether the claimant is eligible to receive benefits. The information you provide may also be used to determine if you should be relieved of charges to your experience rating account. See “Relief of Benefit Charges for Disqualifying Separations.”

Maximum Weekly Benefit Rate - The maximum weekly benefit rate payable is 56 2/3 percent of the statewide average weekly wage paid to workers by employers subject to the law. The Commissioner of Labor and Workforce Development determines the statewide average wage on or before September 1 in each year based on the wages paid during the preceding calendar year. It is effective for benefit years started in the following calendar year. The maximum weekly benefit rate payable to claimants whose benefit years begin in 2022 is $804.

Weekly Benefit Rate - The amount payable each week is computed individually on the basis of the claimant’s average weekly wage in the base year. Each claimant is to be paid 60 percent of his/her average weekly wage, subject to the maximum, as explained above. A claimant who did not earn sufficient wages in his/her base year to receive the maximum weekly benefit rate payable may collect dependency benefits. Dependency benefits are payable at 7 percent of the claimant’s weekly benefit rate for the first dependent and 4 percent for each of the next two dependents, provided that the claimant’s spouse or civil union partner is unemployed during the week in which the claim is established.

“Dependent” means an individual who is unemployed during the calendar week in which the claimant files an initial or transitional claim, and is the claimant’s:

1. Spouse or civil union partner; that is, a person to whom the claimant is legally married; or in a legal civil union; or
2. Dependent unmarried child; that is, son, daughter, stepson, stepdaughter, legally adopted son or legally adopted daughter under the age of 19, or under the age of 22 and attending an educational institution as defined in the law.

Maximum Benefit Amount - New Jersey’s unemployed workers are eligible for benefits equal to the worker’s number of base weeks in the base-year period, up to a maximum of 26 weeks.

Partial Benefits - Individuals who work less than full time due to lack of work may be eligible for partial benefits. To be eligible for partial benefits, the individual must not be employed for more than 80% of the normal hours worked in the occupation. The partial weekly benefit amount payable is computed by subtracting the claimant’s gross wages (fractional part of a dollar omitted) for the week claimed from 120 percent of the claimant’s weekly benefit rate. The partial benefit amount is computed to the next lower dollar, if not already a multiple thereof.

Certain company pensions or other type of retirement benefits are offset against unemployment compensation benefits. If the base-year employer and worker contributed to the cost of the pension, the unemployment insurance payment will be reduced by an amount equal to half of the pension amount. If a base-year employer paid the entire cost, the full pension payment will be deducted. If the worker paid the whole cost of the pension, no deduction will be made. Social Security pension income is not offset against unemployment benefits.

Form BC-2, “Request for Wage and Separation Information,” will be sent to you only if:

1. The Division has no record of receiving your quarterly wage information for the named claimant on a properly completed Form WR-30, “Employer Report of Wages Paid,” or
2. Weekly wage information (instead of quarterly wage information) is needed to determine a claimant’s benefit entitlement, or
3. Alternative base-week amounts or base-year periods must be used to test monetary eligibility.

In all cases, you must report all wages earned in the base year specified. This includes regular pay, overtime, holiday pay, sick pay and back pay awards. The request that the Division sends to you will specify the exact beginning and ending dates of that period.

The law provides that if you fail to return the request within 10 days from the date of mailing thereon, you will be subject to an INITIAL penalty of $25 for each report not submitted within10 days of the request, and to an ADDITIONAL $25 penalty for the next 10-day period of noncompliance.

There are times when a person reopens a claim. This occurs when a claimant returns to work, then becomes unemployed again within 52 weeks from the date of the original claim. When a claim is reopened, the Division must obtain information from his/her most recent employer(s) on Form BC-28, “Request for Separation Information,” as to why the individual is no longer working. If you know of any information that might affect the payment of the reopened claim, you are required by law to report this information when you receive such a request. The Division can approve or deny a claim only on established facts.

Under certain conditions a claimant may be disqualified from receiving unemployment insurance benefits. These reasons and the penalties involved are listed below:

1. Voluntarily leaving work without good cause attributable to such work. The claimant is disqualified for the week in which the quit occurs and for each week thereafter until he/she has earned in employment at least six times the claim’s weekly benefit rate in at least four weeks of employment if the separation occurs before July 1, 2010. For separations on July 1, 2010, and later, the claimant is disqualified for the week in which the quit occurs and for each week afterward, until the claimant has earned in employment at least 10 times the claim’s weekly benefit rate in at least eight weeks of employment. If the claimant is subsequently separated from this employer for other than lack of work, a new determination will be made.
2. Discharge for simple misconduct connected with the work (insubordination, lateness or absences with no written warnings), for separations occurring before July 1, 2010. The claimant is disqualified for the week in which the misconduct occurs and for the seven weeks that immediately follow such week. For separations on July 1, 2010, and later, the claimant is disqualified for the week in which the simple misconduct occurred and for the seven weeks that immediately follow.
3. Discharge for severe misconduct connected with the work (behavior that demonstrates a severe indifference to the employer’s interest but may not be a crime, such as use of drugs/alcohol on the job, repeated violations of a company rule, repeated lateness or absences after receiving a written warning from the employer, destruction/theft of company property or misuse of benefits) occurring July 1, 2010, or later. The claimant is disqualified indefinitely until he or she works in new covered employment for at least four weeks and earns at least six times the claim’s weekly benefit rate. There is no severe misconduct issue on separations occurring before July 1, 2010.
4. Discharge for gross misconduct connected with the work: that is, a work-related act punishable as a crime of the first, second, third or fourth degree under the New Jersey Code of Criminal Justice. For separations before July 1, 2010, the claimant is disqualified for the week in which the discharge occurs and for each week thereafter until he/she has earned in four or more weeks of covered employment at least six times the claim’s weekly benefit rate. For separations occurring July 1, 2010, and later, the claimant is disqualified for the week in which the discharge occurred and for each week afterward until he/she has earned in eight or more weeks of covered employment at least 10 times the claim’s weekly benefit rate. In addition, wages earned with that employer prior to the day of discharge cannot be used for benefit purposes or to remove a disqualification.
5. Failure, without good cause, to apply for or accept suitable work. A disqualification shall continue for the week in which such failure occurred and for the three weeks that immediately follow such week.
6. Unemployed due to a labor dispute. Such disqualification continues for the duration of the labor dispute or until it has been determined that conditions have changed so that there is no longer substantial curtailment of activity at the place of employment. However, if the employees were “locked out” by the employer, were not on strike immediately prior to the lockout, and have been directed by recognized union leadership to work under the preexisting terms and conditions of employment, the employees may be eligible for benefits.
7. Benefits received illegally as the result of false or fraudulent representation. The claimant is disqualified from benefits for one year from the date of discovery by the Division, and subject to a fine of 25 percent of the total amount of benefits received illegally or $20 for each week of benefits received illegally, whichever is greater.
8. Full-time attendance at a public or other nonprofit educational institution by a claimant whose training has not been approved by the Division to enhance the claimant’s employment opportunity, and who did not earn a major portion of his/her base-year wages while attending school. The claimant is disqualified until he/she is no longer a full-time student.

An individual may be ineligible for benefits for other reasons that do not involve the employer, in contrast to the aforementioned disqualifications, which generally do involve the employer. Ineligibility may be for a fixed period or may continue throughout the life of a claim or until the facts change. Reasons for ineligibility are:

1. Failure to demonstrate availability to work.
2. Failure to make an active search for work when required by the Division.
3. Inability to work (See Chapter II, Section 5, on Temporary Disability Insurance).
4. Failure to report to the One-Stop Career Center as directed by the Division, or failure to be available for scheduled telephone appointments.
5. Any individual who is an officer of a corporation, or who has more than a 5 percent equitable or debt interest in the corporation, and who has base-year wages with the corporation will not be considered “unemployed” in any week during the individual’s term or ownership in the corporation. The claim will be invalid and the individual will be ineligible for benefits.
6. If the corporation permanently ceases operations and files for formal dissolution in accordance with the New Jersey Business Corporation Act, N.J.S.A. 14A:l-1 et seq.; or files for bankruptcy under Chapter 7 of the United States Bankruptcy Code, or if the individual’s corporate officer/owner status is terminated, the individual could be considered unemployed and may be eligible for a valid unemployment claim.

The Division depends on employers to provide complete and accurate information about the separation of any employee, so we can apply the provisions of the law to the facts of the claim in determining whether the claimant can be paid. This is why you are notified when a claim has been filed.

Whenever a separation issue is involved, the employer is requested to participate in the initial fact-finding interview. It is in your interest to have a member of your organization, who has knowledge regarding the circumstances of the separation, participate in such interview. The scheduled interview will be conducted by telephone. If it is not possible to participate in the interview, you should provide complete and accurate information when so requested.

Chapter 255, P.L. 1997, which is effective with unemployment claims dated January 4, 1998, and later, provides for the relief of charges of benefits paid to a claimant if the claimant’s employment by that employer ended in any way that would have disqualified the claimant if the claimant had applied for benefits at the time when that employment ended. This amendment does not apply to employers who elect reimbursable status. Prior to the enactment of this amendment, when an individual overcame a disqualification and was otherwise eligible for benefits, all of the individual’s base-year employers were charged for a portion of the benefits the individual received. While the eligibility of the claimant is not changed by this amendment, the employer’s account will not be charged for the benefits received by the claimant for periods that occur subsequent to the disqualifying separation.

NOTE: If a claimant files an appeal and the disqualification is overturned, you will be liable for applicable benefit charges. It is in your best interest to participate in all scheduled appeal hearings.

This amendment does not change the way benefits for non-disqualifying separations are charged. That is, the experience rating accounts of employers are charged for each benefit payment in proportion to the amount of wages that the employer paid the claimant during the base year as part of the total wages earned during the base year. If an employer is relieved of charges because of a disqualifying separation, the percentage of charge liability of the individual’s other base-year employers does not change.

When you are notified that an individual has filed a claim, and the reason for separation is other than lack of work, you should provide as much information as possible regarding the separation, attaching additional sheets if necessary. Complete and mail or fax the form to the address shown on the form.

The Division reviews the form to determine if the reason for separation is potentially disqualifying. If you are the claimant’s most recent employer and the reason for separation is potentially disqualifying, you will be notified of the fact-finding hearing. Hearings are conducted by telephone. If you are not the most recent separating employer, and you report a potentially disqualifying separation, the determination to relieve charges will be based on the written information supplied by you and the claimant. We may write or telephone you if we need additional information.

Employers reporting potentially disqualifying separations will be notified in writing if the individual’s separation is/would have been disqualifying under the law and, therefore, the employer should be relieved of charges. An employer may appeal the determination according to the instructions printed on the form.

The employer is the front line of defense against unemployment insurance fraud. Fraud is usually a “wage-benefit conflict,” which occurs when a claimant is working while collecting unemployment insurance benefits and not reporting his/her earnings to the Division.

Form B-187Q, “Unemployment Benefits Charged to Experience Rating Account,” is mailed to employers each quarter. The form is not a bill, but it is a statement providing the names and Social Security numbers of claimants who are collecting benefits against your account, the date they filed their claims, the compensable weeks they have been paid, and the amount paid in each of those weeks.

If a claimant returns to work for you, a chargeable employer, while continuing to collect unemployment benefits, indicate the return-to-work date in the space provided as the reason for protest. We will initiate an investigation upon receipt of the B-187Q.

If you have information that a claimant has been working for another employer while receiving unemployment benefits on your account, report the potential fraud immediately. You may do this online here. Alternatively, you may call the unemployment fraud hotline at 609-777-4304, or fax your information to 609-292-5593. You may report any case of unemployment fraud of which you become aware, regardless of whether the claimant ever worked for you. Reporting fraud will prompt an immediate investigation.

The Department’s primary fraud detection method is the computer cross-match of benefit payment records with the wage records submitted by employers on the quarterly WR-30, “Employer Report of Wages Paid.” If the cross-match indicates a possible overpayment, form BPC-98, “Weekly Wage Information Request,” is mailed to employers in order to obtain a weekly breakdown of any wages earned during weeks when benefits were collected.

Most overpayment investigations are conducted and resolved by mail and telephone. However, investigators may make unannounced, in-person visits to employers in order to expedite an investigation or to resolve a complex case. Employers are required by New Jersey Unemployment Compensation Law (N.J.S.A. 43:21-11(g) and N.J.A.C. 12:16-2) to provide employment records at any reasonable time to authorized representatives of the Department of Labor and Workforce Development.

Any overpayments detected, fraudulent or otherwise, to claimants collecting on your account will be credited to the account and may reduce your unemployment tax rate.

Employers are required to report basic information about employees who are newly hired, rehired, or who return to work after a separation from employment. The information is used to identify recipients of public assistance and unemployment and disability benefits who fail to report earnings. The basic information that employers report is:

Employee: Name, address, and Social Security number
Employer: Name, payroll address, and FEIN
Optional: Date of hire, date of birth, and gender

Employers have several options in reporting the data to the New Hire Operations Center that is administered by the New Jersey Department of Human Services. Data may be reported electronically (mailed diskette, tape, e-mail); hard copy (mail, fax, W-4, printed list, state form, or other); and online here.

The Division of Unemployment Insurance will use the new-hire information to help prevent overpayments and/or the early detection of overpayments through a cross match of payment records and initial claims with the new hire information.

The number of weeks for which a claimant may receive unemployment benefits is extended temporarily by law when the extended benefit trigger rate exceeds federally prescribed levels. There are now two criteria for determining when an extended benefits period begins.

One criteria is met and up to an additional 13 weeks of benefits may be payable when New Jersey’s rate of insured unemployment (IUR) for a 13-week period averages at least 5 percent and is 20 percent higher than the average rate for the corresponding 13-week period during the preceding two years, or averages at least 6 percent for the same 13-week period. Once EB triggers “on,” the program remains in effect for at least 13 weeks, and continues as long as insured unemployment meets these prescribed levels.

With the enactment of P.L. 2005, chapter 123 in July 2005, New Jersey adopted the optional total unemployment rate (TUR) trigger for EB with respect to any week of unemployment beginning after December 27, 2003. This provided a second more attainable way to trigger an extension of unemployment benefits, in addition to the already established mechanism based on the IUR. The TUR trigger provides for two levels of benefits.

A 13-week extension of benefits is triggered if the state’s average seasonally adjusted TUR for the most recent three-month period reaches 6.5 percent and if that rate is 110 percent or more of the average seasonally adjusted TUR during the corresponding three-month period in either or both of the two preceding calendar years.

A 20-week extension of benefits is triggered during “high unemployment periods” when the average seasonally adjusted TUR for the most recent three months reaches 8 percent and is 110 percent or more of the average seasonally adjusted TUR during the corresponding three-month period in either or both of the two preceding calendar years.

Regardless of which rate, IUR or TUR, triggers an extension of benefits, the extended benefits are paid from a combination of federal and state funds. Fifty percent of the benefits are paid from federal funds and 50 percent are paid from the New Jersey Unemployment Trust Fund.

During an extended benefits period, a claimant may establish a claim for extended benefits if he/she (1) has a regular unemployment claim in existence as of the effective date of the EB period and (2) has exhausted all benefits on that regular claim or (3) if that regular claim expires during the EB period, and the claimant has insufficient covered wages or employment in any state to establish a new unemployment claim.

The Unemployment Compensation Law protects your rights as an employer. These protections include your right to appeal determinations or decisions from the Division of Unemployment Insurance and the Division of Temporary Disability Insurance that you believe may contain errors, or you believe are incorrect. Similar provisions protect the rights of claimants.

You have the right to request a review of any determination or decision by the Division that affects you. There are two administrative levels to the appeal process. The first is the Appeal Tribunal. The second, and higher level, is the Board of Review. Both the employer and the claimant may be represented by an attorney or non-attorney in administrative proceedings before the Division.

It is possible to appeal a Board of Review decision to the New Jersey Superior Court, Appellate Division. For example, if the Division determines that an employer is subject to the law and must pay unemployment insurance taxes, the employer disputing this may appeal the case through various levels up to the New Jersey Supreme Court.

Your rights to a review, hearing or a further appeal are always shown on the written determination or decision that you receive. It is important that you observe the time limits for filing an appeal, which are specified on the determination or decision. There are different time limits for each level of appeal so be sure to carefully read and observe the applicable time limit. The appeal must be filed within 10 days of the mailing date of the determination or within seven days of receiving the determination. For an appeal to the Board of Review of an Appeal Tribunal decision, the appeal must be filed within 20 days of the mailing sate of the Appeal Tribunal Decision. If the appeal is not filed within those time limits, you must explain the reason for the delay.

The appeal period will be extended only if you can show good cause for filing late. Good cause exists when you can show that the delay was due to circumstances beyond your control, which you could not have reasonably foreseen or prevented. An appeal that is filed late without good cause will be dismissed. If you are ever in doubt as to your right to appeal in any case, you should immediately inquire about such right and the time limitations involved.

If you disagree with any written determination you receive on a Family Leave Insurance claim filed with the State Plan or Family Leave During Unemployment Office, you may file an appeal. Each determination contains a written statement concerning your appeal rights. All appeals must be in writing and may be mailed, faxed or sent by e-mail.

The appeal request must be received or postmarked within seven days after delivery of the determination or 10 days after the date of mailing of the determination, except an appeal from a Demand for Refund. An appeal from a Demand for Refund must be received or postmarked within 20 calendar days after delivery of the notice or 24 days after the mailing date of the notice.

When an appeal is filed, you will be notified by mail of the date, time and location from which the appeal hearing will be conducted. Your participation in a telephone hearing with an Appeal Tribunal examiner will not cost you anything. It is not necessary to have an attorney present at the hearing, but you may be represented by an attorney or anyone else you choose. You will receive the results of the hearing by mail.

If you disagree with the determination made by the private plan insurance carrier, you have the right to appeal to the Division of Temporary Disability Insurance. You have one year from the start of your period of family leave to file your appeal of a Private Plan decision.

The Temporary Disability Benefits Law protects against wage loss suffered because of inability to perform regular job duties due to illness or injury. You are required to pay disability insurance taxes and to give the Division of Temporary Disability Insurance certain information about your employees when they file claims for disability benefits. Therefore, you should be familiar with sections of the Temporary Disability Benefits Law covering initial and continuing eligibility for benefits and the amount of benefits a claimant may receive. These provisions are essentially as listed following.

A New Jersey employer subject to the Unemployment Compensation Law is also subject to the Temporary Disability Benefits Law, except for certain government entities. Government entities that are excluded from automatic disability insurance coverage may elect such coverage for their employees, effective January 1 of a calendar year, by filing a written notice to that effect with the Division of Employer Accounts within 30 days of January 1 of that year; that is, from December 1 through January 31. Such coverage must be extended to all employees whose employment is covered by the Unemployment Compensation Law. An election must remain in effect for at least two full calendar years. It may be terminated as of January 1 of any year thereafter by filing written notice with the Division of Employer Accounts at least 30 days prior to the termination date.

A subject employer is automatically covered under the State Plan unless workers are covered under an approved private plan for temporary disability insurance.

Disability insurance claims are processed by mail. The worker may apply for benefits from home or the hospital. Form DS-1, “Claim for Disability Benefits,” may be obtained by writing or telephoning the employer, a union, or the Division of Temporary Disability Insurance, PO Box 387, Trenton, New Jersey 08625-0387. All or some benefits may be forfeited if the claim is filed more than 30 days after the start of disability.

According to the Temporary Disability Benefits Law, an employer must issue to the worker and to the Division a “Claim For Disability Benefits,” Form DS-1, containing the worker’s name, address, Social Security number and wage information needed to determine the worker’s eligibility for temporary disability benefits.

To establish a valid claim in 2017, a worker must have had at least 20 base weeks of New Jersey covered employment or, in the alternative, must have earned $8,400 or more in covered employment during the 52 weeks immediately preceding the week in which the disability begins. A base week is a calendar week in the base-year during which the worker earned in covered employment $168 or more; that is, an amount equal to 20 times the state minimum hourly wage or a non-paid week (up to 13) in which they were separated from employment due to a declared state of emergency during the base year.

The method of calculating a claimant’s average weekly wage for disability insurance is different from that used for unemployment insurance. Under the Temporary Disability Benefits Law, the average weekly wage generally is based on the base-week earnings in the eight calendar weeks immediately before the week in which the disability begins. The total base-week wages earned during these weeks are divided by the number of base weeks in the eight-week period to obtain the average weekly wage. (The weekly wage may include overtime pay, tips and/or the cash value of remuneration other than cash.)

If the average weekly wage used to calculate the weekly benefit amount is less than the average weekly wage that the individual earned during the 26 weeks immediately preceding the period of leave, the individual may request that the weekly benefit amount be recalculated using those 26 weeks. The request must be in writing to the Division of Temporary Disability Insurance.

The weekly benefit amount is figured individually on the basis of the claimant’s average weekly wage. Each claimant is paid two-thirds of his/her average weekly wage, up to the maximum amount payable, which is $633 for disabilities beginning during calendar year 2017. There is no provision in the law for the payment of dependency benefits to disability claimants. The maximum weekly amount is recalculated annually and is equal to 53% of the statewide average weekly wage.

The maximum amount of benefits that may be paid for each period of disability is one-third of the total wages in New Jersey covered employment paid to the worker during the base-year, or 26 times the weekly benefit amount, whichever is less.

No benefits are payable to any person:

• For the first seven consecutive days of each period of disability (the “waiting week”). The waiting week becomes compensable when disability benefits have been paid for all or some part of each of the three weeks immediately following the waiting week.

• For any period of disability that did not begin while the claimant was a covered individual. A covered individual means any person who is employed by a covered employer at the time the disability commences, or who has been out of such employment for 14 days or less.

• For any period during which the claimant is not under the care of a legally licensed physician, dentist, optometrist, podiatrist, chiropractor, psychologist, advanced practice nurse or certified nurse midwife.

• For any period of disability due to willfully and intentionally self-inflicted injury, or injury sustained in the perpetration by the claimant of an act punishable as a crime of the first, second, third or fourth degree under the New Jersey Criminal Code of Justice or for any period that the claimant would be disqualified for unemployment benefits due to gross misconduct.

• For any period during which the claimant performs any work for remuneration or profit.

• In a weekly amount which, together with any remuneration the claimant continues to receive from his/her employer, would exceed his/her regular wages immediately prior to disability.

• For any period during which the claimant would be disqualified under the Unemployment Compensation Law for participation in a labor dispute, unless the disability commenced prior to such period.

• For government workers: for any period during which a covered government worker has not exhausted all accumulated sick leave.

In addition to the above limitations, the law also prohibits the payment of temporary disability benefits:

• For any period for which benefits are paid or payable under any unemployment compensation or similar law, or under any disability or cash sickness benefit or similar law, of the State of New Jersey, or of any other state or the federal government (including permanent Social Security disability benefits).

However, if disability benefits are paid or payable under the disability benefits law of another state, or under the federal maritime law, a claimant may still be eligible for New Jersey benefits. In this circumstance, the weekly benefit rate would be reduced by the amount paid concurrently under the other state or maritime law.

• For any period during which workers’ compensation benefits are paid or payable, other than for permanent partial or permanent total disability previously incurred.

Also, temporary disability benefits shall be reduced by the amount paid concurrently under any governmental or private retirement or pension program to which a worker’s most recent employer contributed on his/her behalf. However, Social Security retirement benefits do not reduce State Plan disability benefits.

In order to medically substantiate a claim, the claimant may be required to submit to a physical examination by a state-appointed physician. In addition, the employer may request an independent medical examination if there is good cause to suspect that the employee is not disabled. There is no cost to the employee or the employer for the examination. Failure to submit to an examination is cause for denial of benefits. For more information about the medical examination process or to request a medical examination, call 609-633-8718, or FAX 609-292-1692.

If you have reason to believe that an employee is collecting temporary disability benefits and working for another employer, call 609-984-4540, FAX 609-292-1692.

If the claimant indicates on a claim form that he/she worked for you at some time during his/her base-year period (52 weeks immediately preceding the week in which the disability began) the Division may send you a wage report request. You are required by law to supply the requested wage information. If you do not comply within 21 days from the time that the form was mailed to you, the Division will assess a $250 penalty.

The employer for whom the claimant last worked immediately prior to the onset of the disability will assume all the charges for all benefits paid to the claimant for that period of disability.

Benefits payable under the Temporary Disability Benefits Law are considered “third party sick pay.” Federal law provides that the portion of gross disability benefits paid, which is attributable to the chargeable employer’s contributions for disability insurance coverage, is subject to federal taxation for Social Security, Medicare, FUTA and federal income tax.

Based on the chargeable employer’s average experience rate for State Plan temporary disability insurance during the most recent three years, the Division calculates the worker’s portion of Social Security (FICA) contributions and Medicare contributions of each benefit authorization. That amount is deducted from the benefits to be paid to the claimant and is forwarded to a federal depository. To calculate the FICA and Medicare contribution that you, the employer, must remit to the federal government, refer to the “Taxable Amount” column on the Division’s Form DS-7C, “Notice of Disability Benefits Charged or Credited.” The figure in this column specifies the portion of benefits to use in calculating the employer’s contribution at the applicable employer rate.

Upon the claimant’s completion of Form W4S, “Request for Federal Income Tax Withholding from Sick Pay,” a federal income tax deduction may also be made from the payable disability benefit gross amount. This deduction is indicated on Form DS-7C in the “Federal Tax Withheld” column. The employer is not required to match this withholding amount.

If you have questions about payment of FUTA taxes on the portion of paid benefits that is attributable to your disability insurance contributions as an employer, direct them to the Internal Revenue Service. The Division makes no deduction from paid benefits to meet employer FUTA liability.

If a worker or employer disagrees with a determination on a disability claim and wishes to appeal, it must be done in writing. The appeal must be filed within 10 days of the date of mailing of the determination or within seven days of receipt of the determination. However, if a claimant disagrees with a demand for refund of disability benefits, he/she must do so in writing within 24 days of the date of mailing or within 20 days of receipt of such demand for refund. If the appeal is not filed within the required time limits, an explanation of the reason for the delay must be provided. The appeal period will be extended only if good cause for filing late is shown. Good cause exists when it can be shown that the delay was due to circumstances beyond the appellant’s control, which could not have been reasonably foreseen or prevented. An appeal that is filed late without good cause will be dismissed.

The New Jersey Division of Temporary Disability Insurance uses an automated claims processing system (DABS). Automation has reduced the time required to determine a disability claim.

There are samples of DABS-generated forms in the Forms Section of this handbook.

A brief synopsis of the automated functions of DABS includes:

1. Daily mailing of benefit checks to claimants in conjunction with daily mailing of notices for these payments to the chargeable employer.

2. Daily mailing of requests for information not received on the claimant’s original disability claim form (DS-1). When the forms are returned, the system automatically directs the form to the examiner assigned to the case.

3. System-generated determinations calculated from the information received by State Plan Disability. The chargeable employer is mailed a copy of all determinations rendered by the system.

4. Various internal controls built into the system to protect the chargeable employer from fraudulent claims.

These automated functions have improved the overall accuracy and consistency of determinations issued by the State Plan Bureau. In addition, automation has increased capacity and efficiency in handling and responding to telephone and written inquiries from claimants, employers, and all other interested parties.

The Division of Temporary Disability Insurance conducts informational seminars. Interested employers or their representatives have the opportunity to learn more about the New Jersey Division of Temporary Disability Insurance Program and the DABS claims-processing system by contacting:

New Jersey Department of Labor and Workforce Development
Division of Temporary Disability Insurance
PO Box 387
Trenton, New Jersey 08625-0387
(609) 984-4540

A worker who becomes totally disabled and who has been out of covered employment for more than 14 days may be eligible for benefits under the Disability During Unemployment program.

Claims filed under this program are governed by both the Unemployment Compensation and Disability Benefits laws. However, these claims are primarily unemployment insurance claims, established under Section 4(f) of the Unemployment Compensation law. Therefore, to be eligible for benefits, the claimant must meet all the requirements of this law, and be totally unable to work. The claimant must also be under the care of a legally licensed physician, dentist, podiatrist, optometrist, chiropractor, psychologist, or advanced practice nurse.

To have a valid 4(f) claim, the claimant must have been paid a minimum amount of wages while in a job covered by New Jersey’s disability insurance program during the base period of the claim. Employment with local governments that have not elected disability coverage for their workers is not covered for disability benefits; nor is out-of-state employment, even though it is covered for unemployment insurance.

To file for benefits, the claimant must complete Form DS-1, “Claim for Disability Benefits,” and mail it to the Division of Temporary Disability Insurance, PO Box 387, Trenton, New Jersey 08625, where the claim will be processed.

If the claimant has an unemployment insurance claim and becomes disabled while unemployed during the benefit year, he/she may be paid 4(f) benefits against the claim. In most cases the claimant will receive the same weekly rate as was received on the unemployment insurance claim. The maximum that one can collect on unemployment insurance and 4(f) benefits combined is one and one-half times the maximum benefit amount of the claim.

If the 4(f) claim is the initial claim, it will be processed under the wage record system. This system generates a monetary determination listing all New Jersey subject employers for which the claimant worked during the base period. The determinations also include all wages reported by each of those employers.

A claim filed for disability will be valid if the claimant earned at least $168 in covered employment in each of 20 calendar weeks, or earned at least $8,400 during the base period. The regular base period is the first four calendar quarters of the last five completed calendar quarters before the date of the claim.

If a claim was originally determined invalid under the regular base period, there are two alternative base periods that can be used to establish monetary eligibility. Alternative Base Year #1 consists of the four most recently completed calendar quarters preceding the date of claim, and Alternative Base Year #2 consists of the three most recently completed calendar quarters preceding the date of the claim plus weeks in the filing quarter up to the date of claim.

The maximum benefit for 2017 is a weekly rate of $677, and a maximum amount of $17,602. The claimant is entitled to one week of potential benefits for each week worked in covered employment, subject to a maximum of 26 weeks.

Once the claimant completes Form W4S, “Request for Federal Income Tax Withholding from Sick Pay,” a federal income tax deduction at the rate of 10% will be made.

Information necessary to determine eligibility is obtained from the claimant, to whom we mail a packet of forms the claimant must complete and return. This includes dependency information, as well as student, corporate officer or pension status. Separation information is also obtained from the employer. Both the claimant and the employer have opportunities for rebuttal through telephone calls, which are documented by memoranda.

Upon receipt of all information, a determination will be made. It remains in effect and is applicable to any claim that the claimant might make during the same benefit year for unemployment insurance benefits.

Benefits payments made under the Disability During Unemployment program are not charged to the claimant’s base-year covered employer(s); such payments are charged to the unemployment disability account within the State Disability Benefits Fund. However, because claimants may use 4(f) claims to claim unemployment benefits after recovery from the disabling condition, it is important that employers respond timely to any Form BC-28, “Request for Separation Information,” issued in connection with a 4(f) claim. Charges for unemployment benefits potentially payable during the benefit year of a 4(f) claim may be affected by the information provided by employers on Form BC-28.

A claimant who disagrees with a determination of 4(f) benefits and wishes to appeal may do so in writing within 10 days from the date the decision was mailed or within seven days of receipt of the determination. However, if a claimant disagrees with a demand for refund of 4(f) benefits, he/she may do so in writing within 24 days of the date of mailing or within 20 days of receipt of such demand for refund. If the appeal is not filed within the required time limits, an explanation for the delay must be provided. The appeal period will be extended only if good cause for filing late is shown. Good cause exists when it can be shown that the delay was due to circumstances beyond the appellant’s control, which could not have been reasonably foreseen or prevented. An appeal that is filed late without good cause will be dismissed.

The New Jersey Temporary Disability Benefits Law permits employers to cover their workers under private plans that are approved and monitored by the Division of Temporary Disability Insurance, Private Plan Compliance Section. Covered employers with approved private plans are relieved of employer contributions to the State Disability Benefits Fund, as are their workers, as long as coverage is continued under the plan.

As a subject employer, you may establish a private plan for the payment of disability benefits in place of the benefits payable under the State Plan. Such private plans may be contracts of insurance issued by authorized carriers, by employers as self-insurers, or by agreements between unions and employers.

All private plans must be approved by Private Plan Compliance Section. Employers opting for private plan coverage must submit an application and complete description of the plan for review. Some of the requirements are:

(1) Eligibility requirements for benefits may be no more restrictive than the State Plan’s.

(2) Benefits must be at least equal to State Plan benefits, both as to weekly amount and total weeks compensable.

(3) Workers’ contribution must not exceed those required under the State Plan.

(4) If employees are required to contribute to the cost of a private plan, a majority of the workers must agree to that arrangement by written election before the plan can be approved.

(5) Some employers who wish to self-insure their private plan may be required to provide security to guarantee the payment of benefits.

You may terminate a private plan you may do so at any time. However, you must first notify Private Plan Compliance Section in writing of your intention at least 30 days before the effective date of the termination.

Workers may terminate a private plan under certain conditions. Also, an insurer may terminate a private plan with 60 days’ written notice to Private Plan Compliance Section.

Private Plan Compliance Section may withdraw its approval of a private plan because of the termination of the insurance coverage or for other good cause.

When a private plan is terminated, coverage under the State Plan is automatic effective the day following termination. No application forms are required of the employer or the workers to begin State Plan coverage. In such cases, liability for contributions to the State Plan is also effective immediately. It is recommended that employers changing from private plan to State Plan coverage obtain an adequate supply of State Plan claim forms (DS-1) from the Division of Temporary Disability Insurance. To apply for approval or termination of a private plan, write to:

Division of Temporary Disability Insurance Telephone: (609) 292-2720
Private Plan Compliance Section FAX: (609) 292-2537
Plan Approval Unit E-mail: Raymond.Russell@dol.nj.gov
PO Box 957 Web site: http://www.nj.gov/labor/tdi/tdiindex.html
Trenton, New Jersey 08625-0957

New Jersey law provides up to six weeks (42 days) of Family Leave Insurance benefits. This program is financed by worker payroll deductions. Employers do not contribute to the program.

Benefits are payable to covered employees from either the New Jersey State Plan, or from a state-approved employer-provided private plan, to:

• Bond with a child during the first 12 months after the child’s birth, or during the first 12 months after the placement of the child with the covered individual for adoption.

For bonding claims after the birth of a child, the covered individual or the covered individual’s domestic partner or civil union partner must be the biological parent of the child.

Your employees must give you 30 days’ notice that they will be taking family leave to bond with their newborn or newly adopted child. If you inform us that you were not given proper notice, the benefit entitlement may be reduced by 14 days.

Bonding leave must be taken for a continuous period of at least seven consecutive days. If the employer permits an exception, the leave may be taken in non-consecutive seven-day periods.

• Care for a family member with a serious health condition that is supported by a certification provided by a health care provider. Claims may be filed for consecutive weeks, for intermittent weeks, or for intermittent days during a 12-month period, beginning with the first date of the claim.

“Family member” means a child, spouse, domestic partner, civil union partner, or parent of a covered individual.

“Child” means a biological, adopted, or foster child, stepchild or legal ward of a covered individual, child of a domestic partner of the covered individual, or child of a civil union partner of the covered individual. A child is either less than 19 years of age, or older but incapable of self-care because of mental or physical impairment.

Employees covered under the New Jersey State Plan can obtain information about the program, as well as an application for Family Leave Insurance benefits (Form FL-1), here; by telephoning the Division of Temporary Disability Insurance’s Customer Service Section at (609) 292-7060, or by writing to the Division of Temporary Disability Insurance, PO Box 387, Trenton, NJ 08625-0387.

If the employee is receiving State Plan temporary disability benefits for pregnancy, after the child is born, the Division will automatically mail Form FL-2, Family Leave Insurance Benefits – New Mother Bonding to the employee. This form gives information about filing a claim for Family Leave Insurance benefits to bond with the newborn child. If the claim is filed for the period immediately after the employee recovers from her pregnancy-related disability, in most cases, she will receive the same weekly benefit amount she was paid for her pregnancy-related disability claim. No one may receive more than the maximum weekly benefit amount allowed by law for the year in which the claim is filed. No waiting period is required in this instance.

Accurate and timely wage information reported by employers is essential to the prompt processing of claims. Wage information is obtained primarily from either Part D of the Family Leave Insurance Application (Form FL-1), or from the Wage Request Form (Form E15). If the claimant indicates on the claim form that he/she worked for you at some time during his/her base-year period (52 weeks immediately preceding the week in which the period of family leave began), the Division may send you a wage report request.

You are required by law to supply the requested wage information. If you do not comply within 25 days from the date that the form was mailed to you, the Division will assess a $250 penalty.

An employee who files a claim for intermittent Family Leave Insurance must complete the Intermittent Family Leave Claim form. This form is Part E of the Family Leave Insurance application (Form FL-1), and is also on the back of the Family Leave Insurance Continued Claim Certification (Form FL-3). Family Leave Insurance can be paid only for whole days of leave. Benefits are not paid for partial days of leave.

An authorized employer representative must sign the completed Intermittent Family Leave Claim form, confirming the dates indicated by your employee. This verification helps to prevent overpayments. No benefits will be authorized beyond the date of the employer’s signature.

You may require your employees to use up to two weeks of sick leave, vacation time, or other paid time off, but you must provide full pay for this leave time. If you require that your employees use up to two weeks of paid time off, you can request to have the maximum Family Leave Insurance allowance reduced by up to 14 days.

An employer can elect to provide workers with Family Leave Insurance benefits under a private plan that has been approved by the Division of Temporary Disability Insurance. The Division will not approve a private plan that requires employee contributions, unless a majority of the employees who will be covered by the private plan have agreed to private plan coverage by written election. Employers will provide information about the private plan and the proper forms for covered employees to claim benefits under the private plan.

If the period of Family Leave begins more than 14 days after the last day of covered employment and there is a separation from employment, the individual may be eligible for benefits under the Family Leave During Unemployment program. The individual must meet all requirements for unemployment benefits, except that he/she is not required to show availability for work. If the individual is on an approved leave of absence from covered employment, the individual may be eligible for benefits under the State Plan Family Leave Insurance Program.

If you disagree with any written determination that you receive for a Family Leave Insurance claim for the State Plan or Family Leave During Unemployment Office, you may file an appeal. Each determination contains a written statement about your appeal rights. All appeals must be submitted in writing and may be mailed, faxed, or sent via e-mail. You can find more information about appeals here.