ASSEMBLY LABOR COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1971

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Assembly Labor Committee reports favorably the Assembly Committee Substitute for Assembly Bill, No. 1971.

      This committee substitute provides that no employer's account will be charged for unemployment insurance benefits paid to a claimant if the claimant's employment by that employer was ended in any way which would have disqualified the claimant for benefits if the claimant had applied for benefits at the time when that employment ended, except that the employer may be charged if the claimant was laid off and received remuneration in lieu of notice or was involved in a labor dispute with that employer.

      The substitute also imposes penalties on employers who knowingly mislead the Department of Labor to reduce unemployment charges against themselves. Finally, the substitute provides that the department's administrative expenses will be given first priority in the use of funds from the Unemployment Auxiliary Fund.

      The substitute has no effect on determinations regarding any individual’s eligibility for unemployment benefits or the amount of benefits paid to the individual. The changes made by the substitute only concern how employers are charged for benefits.

      This committee substitute is identical to Senate Bill, No. 1616 [2R].