On May 12, 2014, the New Jersey Senate approved a Bill (S.1440) that would make it unlawful for New Jersey employers to discriminate against job applicants who are currently unemployed.  This prohibition would apply to the hiring process as well as to the setting of terms and conditions of employment.

New Jersey law (NJSA 34:8B-1) currently prohibits employers from discriminating against unemployed persons in job postings or advertisements.  The proposed Bill, if passed, would expand protection to preclude discrimination of unemployed individuals with regard to hiring, compensation, or other terms, conditions or privileges of employment.  However, the Bill would not prohibit an employer from inquiring into an applicant’s employment history and the circumstances surrounding an applicant’s separation from prior employment.

A significant difference between the New Jersey Bill and similar laws prohibiting discrimination against the unemployed such as New York City’s Law, which became effective on June 1, 2013, is that the New Jersey Bill does not provide employees with a private cause of action to sue employers for discrimination.  Under the New Jersey Bill, employers who violate the Bill face fines of up to $1,000 for the first offense, $5,000 for the second offense and $10,000 for each subsequent offense, which is enforced by the New Jersey Department of Labor and Workforce Development.  On the other hand, individuals who believe they have been discriminated against by New York City employers on the basis of their employment status have the right to sue in court and recover compensatory and punitive damages, as well as attorneys’ fees.

We will continue to monitor this Bill as it makes its way to the Assembly for approval before reaching the Governor.