New Jersey Law Further Expands Striking Workers’ Eligibility for Unemployment Benefits


On April 24, 2023, New Jersey Governor Phil Murphy signed legislation further expanding the circumstances under which striking workers can collect unemployment insurance (UI) benefits. This followed legislation Governor Murphy previously signed into law in 2018 allowing striking workers to collect UI benefits under a variety of different circumstances never before allowed under New Jersey’s Unemployment Compensation Law. The continued expansion of unemployment benefits for workers engaging in a strike against their employer uses state funds to subsidize labor disputes and may negatively impact the state’s economy.

Quick Hits

 

The new law does the following:

This law took effect immediately and applies retroactively to all UI benefit claims filed on or after January 1, 2022.

Final Thoughts

Strikes and lockouts should always be a last resort when, despite best efforts, labor and management are unable to resolve a labor contract or related dispute. Making it easier and advantageous for strikers to receive unemployment benefits may cause strikes in New Jersey to become more prevalent and last longer. Workers who may consider voluntarily withholding their labor through striking now have more incentive to do so and with reduced risk of wage loss. Employers may be concerned that their unemployment tax payments are more likely to finance strikes and labor disputes that present an existential challenge to their business operations. Only time will tell how enhancing employee leverage against employers impacts the climate for business growth and development in New Jersey.


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National Law Review, Volume XIII, Number 191