NJ Offers Tax Credits to Employers to Offset Minimum Wage Increases for Workers with Impairments

A $10 million tax credit program put into effect for the 2019 tax year will help offset payroll cost increases for employers of workers with impairments.

The program was created through the minimum wage law signed by Governor Murphy in 2019 to ease the transition for businesses to a $15 minimum wage, and is administered by the New Jersey Department of Labor and Workforce Development. It is designed to help bridge the economic gap for employers as the minimum wage rises by $1 per hour each year until it reaches $15 per hour in 2024 for most employees.

Employers of workers with impairments will be able to claim credit for the cost of the wage increases and corresponding increases in payroll taxes that the employer pays on those workers’ wages.

“Every hardworking New Jerseyan working full-time deserves a fair, livable wage,” said Governor Phil Murphy. “With this new program, we are committed to providing individuals with disabilities the opportunity to fully participate in our society and economy while ensuring the viability of businesses in New Jersey.”

“While it is critical for workers to be able to earn a living wage, we must also continue to support our business community, especially those who provide employment for hard-to-place workers,” said Labor Commissioner Robert Asaro-Angelo.

The program is part of Gov. Murphy’s Jobs NJ, a multi-pronged initiative to grow New Jersey’s talent pool to meet the needs of businesses into the future. It is part of the governor’s over-arching goal of providing equitable opportunities in the workforce and building a stronger, fairer economy for all. To learn more about Jobs NJ, click here.

Qualifying employees are those who earn at least minimum wage and whose work capacity is “significantly impaired by age or physical or mental deficiency or injury” and who are found by the state to be eligible for personal assistance or prescribed drugs to be able to perform the essential tasks of the job.

Eligible employers must complete an Application for Certification, which can be found here.

To read more about "minimum wage" and workers' compensation, click here.

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 jon@gelmans.com has been representing injured workers and their families who have suffered occupational accidents and illnesses.

NJ Announces Increases in Maximum Benefit Rates & Taxable Wage Base

The New Jersey Department of Labor and Workforce Development (NJDOL) announced increases in the maximum benefit rates and taxable wage base as of January 1 for its Unemployment Insurance, Temporary Disability Insurance, Family Leave Insurance, and Workers’ Compensation programs.

On January 1, the maximum weekly benefit amount for Unemployment Insurance beneficiaries increased to $713, from $696. The maximum weekly benefit for state plan Temporary Disability and Family Leave Insurance claims increased to $667, from $650, while the maximum weekly benefit for Workers’ Compensation rose to $945, from $921.

The maximum benefit rates and the taxable wage base are recalculated each year based on the statewide average weekly wage, in accordance with the laws governing these programs. The benefit rates and taxable wage base for 2020 reflect the $1,259.82 average weekly wage for 2018, which rose by 2.6 percent from $1,228.25 in 2017.

The level of wages subject to wage taxes in 2020 increased to $35,300 for employers covered under the Temporary Disability Insurance program and for workers and employers covered under the Unemployment Insurance program, the Workforce Development Partnership Program, and Supplemental Workforce Fund for Basic Skills.

Additionally, a law enacted last year (P.L. 2019, chapter 37) increased the level of wages subject to wage taxes effective January 1 for workers covered under the Temporary Disability and Family Leave Insurance programs to cover significant increases in these benefits that go into effect later this year, including a higher maximum benefit rate and an extension in the maximum amount of leave available. The taxable wage base is $134,900 for 2020 for workers contributing to these programs, up from $34,400, or 107 times the statewide average weekly wage, up from 28 times the average weekly wage.

The increase in the maximum weekly benefit rate for Temporary Disability and Family Leave Insurance claims starts July 1, with an increase to $881 from $667. This represents 70 percent of the statewide average weekly wage, up from 53 percent of the average weekly wage. Additionally, the maximum amount of continuous leave will increase to 12 weeks, up from six weeks, and the maximum amount of intermittent leave will increase to 56 days, up from 42 days.

To qualify for Unemployment, Temporary Disability, or Family Leave benefits this year, an applicant must have earned at least $200 per week for 20 base weeks, or alternatively, have earned at least $10,000 during the base weeks. Benefit eligibility criteria are based on the state minimum wage in effect on October 1, 2019, when the minimum wage in New Jersey was $10/hour for most employees.

The contribution rate for state and local government entities that choose to make contributions rather than reimburse the trust fund for Unemployment Insurance benefits paid to their former employees, decreased to 0.6 percent of taxable wages during calendar year 2020, down from 0.7 percent in 2019.

Below is a chart showing the 2019 rates and the changes taking place January 1 and July 1:

To read more about "rates" and workers' compensation, click here.
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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 jon@gelmans.com has been representing injured workers and their families who have suffered occupational accidents and illnesses.

Dependents of NJ Public Safety Workers May Receive Supplemental Benefits

A new benefit program, providing additional workers’ compensation benefits for some dependents of public safety workers, goes into effect on January 1, 2020.

Law Enacted to Phase-Out Use of Military Burn Pits

Recent legislation passed Congress and signed by the President last week mandates the  phase-out burn pits used by the United States military. The law provides for medical monitoring and health assessments of military members who have been exposed to toxic chemicals or airborne contaminants from burn pits. This legislation follows the dismissal, almost a year ago, of litigation against third-party contractors by service members, and their dependents, who became ill after alleged exposure to  the toxic fumes where burn pits were utilized in the Iraq and Afghanistan wars.

Public Policy and Multi-Jurisdictional Claims

A NJ appellate court has ruled that public policy favors litigation in the State of New Jersey were there exists a dispute over multi-jurisdictional choice of law issues governing workers’ compensation insurance coverage in NJ.

Judicial discretion

Just APPROVED FOR PUBLICATION 12/13/2019 a NJ Appellate case defining expectations and focussing on: judicial discretion, medical treatment and disallowed prescription opioids that do not ”cure and relieve.”

Workplace Deaths Rise

Work is getting more dangerous in the US. The US Bureau of Labor Statistics reports, there were 5,250 fatal work injuries recorded in the United States in 2018, a 2 percent increase from the 5,147 in 2017.