Governor Signs Pro-Worker UI Benefits Bill

Expands Access to Benefits for Workers During Labor Disputes

On Apr 24, 2023

Gov. Phil Murphy today signed A4772/S3215, which concerns unemployment insurance (UI) benefits for workers during labor disputes. This bill addresses certain loopholes that currently prevent workers participating in labor disputes, such as strikes, from receiving access to UI benefits.

The governor stated in a press release issued today that, “Unemployment insurance benefits should be a universal right for individuals 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.”

Meanwhile, Alexis Bailey, vice president of government affairs at the New Jersey Business & Industry Association (NJBIA), commented, “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.”

In particular, the bill amends existing law to:

1. Permit UI benefits to be distributed to workers during an employer lockout even if a strike did not immediately precede the lockout;
2. 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; and
3. 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.

This bill takes effect immediately and will apply to all UI benefit claims filed on or after January 1, 2022.

“Workers dedicate a significant portion of their lives to their careers, and they deserve to be protected financially while expressing their legal right to strike over wages, benefits and workplace conditions,” said DOL Commissioner Robert Asaro-Angelo.

To access more business news, visit NJB News Now.

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