Sponsored by:
Assemblywoman NANCY F. MUNOZ
District 21 (Morris, Somerset and Union)
Assemblywoman HOLLY SCHEPISI
District 39 (Bergen and Passaic)
SYNOPSIS
Providing gross income tax exclusion for awards for unlawful gender-based compensation discrimination.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax exclusion for certain claims and awards in connection with certain unlawful gender-based compensation discrimination, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Gross income shall not include amounts received by a taxpayer for an informal claim or legal action, whether by suit or agreement, and whether as a lump sum or periodic payment, for unlawful gender-based discrimination in compensation or in terms, conditions, or privileges of employment
b. As used in this section, “unlawful gender-based discrimination in compensation or in terms, conditions, or privileges of employment” means an act that is unlawful discrimination in compensation or in terms, conditions, or privileges of employment on the basis of gender under a provision of federal, state, or local law, or common law:
(1) providing for the enforcement of civil rights, or
(2) regulating any aspect of the employment relationship, including claims for wages, severance, overtime, compensation, breach of contract, or benefits, or prohibiting the discharge of an employee.
2. This act shall take effect immediately and apply to taxable years beginning after its date of enactment.
STATEMENT
This bill provides the victim of gender-based wage discrimination a gross income tax exclusion for any awards or settlements he may receive, to prevent a second mistreatment by the tax system.
A “successful” victim of unlawful gender discrimination in compensation or in terms, conditions, or privileges of employment who has brought a claim to trial or settlement agreement may receive an award or settlement to compensate for a period of under-compensation, only to discover that the lump sum payment has pushed her into a higher tax bracket and an increased tax bill.
This bill provides a gross income tax exclusion for awards and settlements for gender-based discrimination in compensation or in terms, conditions, or privileges of employment.