On February 6, 2023, New Jersey Gov. Murphy signed into the law commonly called “The New Jersey Temporary Workers’ Bill of Rights (A1474 2R),” which requires temporary staffing agencies and their clients in certain industries to equalize the compensation and benefits of temporary workers with that of regular employees, provide each temporary worker with a detailed itemized statement of wage and deduction information and other requirements. The applicable industry includes food preparation and service, building and ground cleaning, transportation occupations, and construction.

Most of the law’s provisions will take effect on August 5, 2023, except the new hire notice requirement and non-retaliation provision will become effective on May 7, 2023.

The new law provides significant equal compensation protection to temporary workers, including the “average cost of benefits, or the cash equivalent thereof.” However, the law does not further define benefits for this purpose. Covered employers for temporary agencies or third-party clients should review this development with their employment counsel and monitor any updates to these new requirements.

Temporary Workers’ Bill of Rights (A1474/S511) »

As a reminder, if an employer has at least one employee who resides primarily in New Jersey for at least 15 days in any month, the employer is subject to file Form(s) 1095 with the New Jersey Division of Taxation in the subsequent year annually. The current 2022 tax year’s filing is due on March 31, 2023. To meet NJ’s reporting requirements, employers can provide copies of Forms 1095-C (or B) prepared for the ACA employer mandate and individual mandate provisions.

For fully insured plans, if their insurers are filing their NJ residents’ Form(s) 1095-B, then the employers are not required to file the forms with the state. However, employers are encouraged to discuss and confirm with their insurers that the insurers are filing their forms in a timely manner.

For self-insured plans, employers are responsible for timely filing completed Forms 1095-C (or B) with the state.

The main objective of this state reporting is for the state to enforce its Individual Mandate requirement by verifying that each resident had health coverage in the prior year.

Affected employers should be aware of these developments.

New Jersey Shared Responsibility Requirement Site »

The New Jersey Department of Labor and Workforce Development has announced the 2023 maximum weekly benefit amount that eligible employees will receive under temporary disability insurance is 85% of their average earnings up to a maximum of $1,025 per week (2022: $993 per week).

For the 2023 premium rates for temporary disability insurance (TDI) and family leave insurance (FLI), please refer to the October 25, 2022, edition of Compliance Corner.

2023 Rate information, Contributions and Due Dates »

On October 21, 2022, the NJ Department of Labor and Workforce Development (LWD) announced the 2023 TDI and FLI contribution rates. Below are the 2023 contribution rates for employees who work in NJ:

As the above chart shows, there will be no employee contribution for TDI but only for FLI of 0.06% rate in 2023. Employers who participate in the state’s TDI program will be moved to a lesser contribution table and are expected to see a collective reduction of $20 million in their TDI contributions for 2023. Employers are not required to contribute to FLI.

TDI and FLI contribution rates have been decreasing over recent years due to low utilization of the TDI and FLI programs (fewer claims) compared to the collected funds.

TDI provides partial wage replacement to NJ employees who must stop working due to a physical or mental health condition or other disability unrelated to their work. FLI provides NJ employees with partial wage replacement when they take time off to bond with a newborn, newly adopted or placed foster child, or to provide care for seriously ill or injured family members. (The definition of family members is broad for the purpose of NJ FLI, and it can be found here.)

2023 Contribution Rates Announcement »
New Jersey TDI and FLI Programs Main Site »

On January 19, 2022, Gov. Murphy signed Executive Order No. 283 requiring covered workers at healthcare facilities and high-risk congregate settings to be up to date with their COVID-19 vaccinations, including having received booster shots when they are eligible. The new requirement was imposed to strengthen protections against the spread of COVID-19 and the Omicron variant to vulnerable populations across the state.

Examples of covered health and high-risk congregate settings covered facilities under the Order can be found at the NJ state’s press release site here. The covered workers include both full and part-time employees, contractors, and individuals providing operational, custodial, or administrative support.

Unvaccinated healthcare facilities’ covered workers subject to the Biden Administration’s vaccine mandate for healthcare settings had until January 27, 2022, to obtain their first dose of the primary series of a COVID-19 vaccination, and will have until February 28, 2022, to submit proof that they have completed their primary series and any booster shots for which they are eligible. For unvaccinated healthcare facilities’ covered workers who are not subject to the Biden Administration’s vaccine mandate for healthcare settings and high-risk congregate care, they will have until February 16, 2022, to obtain their first dose of the primary series of a COVID-19 vaccination and submit proof that they are up to date with their vaccination by March 30, 2022.

All covered workers will be required to be vaccinated by the dates set forth in the Order noted above and will no longer be permitted to submit to testing as an alternative to vaccination, except for employees who request and receive an exemption because of a disability, medical condition or sincerely held religious belief. If an employee receives an exemption, they must submit to weekly or bi-weekly testing in accordance with the previous Executive Order signed by the Gov. last year.

Employers with healthcare facility covered workers and high-risk congregate settings in the state should be aware of these new updates.

Executive Order 283 »

As a reminder, if an employer has at least one employee who resides primarily in New Jersey for at least 15 days in any month, the employer is subject to file Form(s) 1095 with the New Jersey Division of Taxation in the subsequent year annually. The current 2021 tax year’s filing is due on March 31, 2022. Employers are permitted to provide copies of Forms 1095-C (or B) that are prepared for the AIRS to meet NJ’s reporting requirements.

For fully insured plans, if their insurers are filing their NJ residents’ Form(s) 1095, then the employers are not required to file the forms with the state. Employers are encouraged to discuss and confirm with their insurers that the insurers are filing their forms timely.

For self-insured plans, employers are responsible for filing completed Forms 1095-C (or B) with the state, timely.

The main objective of this state reporting is for the state to enforce its Individual Mandate requirement by verifying that each resident had health coverage in the prior year.

Affected employers should be aware of these developments.

New Jersey Shared Responsibility Requirement Site »

The NJ Department of Labor and Workforce Development (LWD) recently announced that the 2022 Temporary Disability Insurance (TDI) employee contribution is 0.14% on the first $151,900 (wage cap) in covered wages earned during the calendar year. Accordingly, the maximum employee contribution for 2022 is $212.66/week. It is a significant rate decrease from the current rate of 0.47%. Employers are responsible for paying between $39.80 and $298.50 on the first $39,800 earned by each employee during this calendar year.

The 2022 employee contribution rate for Family Leave Insurance (FLI) is 0.14% on the first $151,900 (wage cap) in covered wages earned during the calendar year. The maximum employee contribution for 2022 FLI is $212.66 (the same as TDI). Employers are not required to contribute to the FLI program.

New Jersey employers should take note of the changes to these contributions and work with their payroll providers to institute the contributions.

Rate Information »
NJ TDI, Information for Workers, How the Program is Funded »
NJ TDI, Information for Employers, How the Program is Funded »
NJ FLI, How the Program is Funded »

On September 10, 2021 Commissioner Caride issued Bulletin No. 21-10 as a response to Tropical Storm Ida and the state of emergency declared by Gov. Murphy on September 1, 2021. The bulletin requires carriers to provide coverage of prescription drug refills even when the covered person has not yet reached the scheduled refill date. They must also permit coverage prescription drugs in excess of a 90-day supply. There must also be coverage through early refills and relaxed quantity limits with respect to lost or destroyed medications.

The Department of Banking and Insurance expects carriers to comply with and communicate the provisions of this bulletin to covered persons. Employers with New Jersey plans should be aware of this guidance.

Bulletin No. 21-10 »

On April 12, 2021, Commissioner Caride released Bulletin No. 21-07, extending the special enrollment period (SEP) on the state exchange as a part of New Jersey’s ongoing response to the COVID-19 pandemic and following the passage of the American Rescue Plan Act of 2021. The SEP will now be in effect through November 30, 2021. As background, individuals may usually only elect coverage through the state exchange (Get Covered New Jersey) during open enrollment or special enrollment periods.

During this SEP, individuals who are not already enrolled in an individual health benefits plan can apply for coverage through the exchange or directly through carriers. The SEP will also allow individuals who are already enrolled in a health benefits plan to replace their coverage with coverage on the exchange. The coverage will be effective no later than the first of the next month after an individual’s enrollment.

Although this change affects the individual market, employers should keep this in mind as it would likely create a qualifying event that would allow for an employee to potentially drop employer coverage (for themselves or their dependents) to go on the New Jersey exchange.

Bulletin No. 21-07 »

On January 29, 2021, Commissioner Caride released Bulletin No. 21-03, providing a special enrollment period (SEP) on the state exchange as a part of New Jersey’s ongoing response to the COVID-19 pandemic. The SEP will be in effect from February 1, 2021, through May 15, 2021. Individuals may only elect coverage through the state exchange (Get Covered New Jersey) during open enrollment or special enrollment periods.

During this SEP, individuals who are not already enrolled in an individual health benefits plan can apply for coverage through the exchange or directly through carriers. The SEP will also allow individuals who are already enrolled in a health benefits plan to replace their coverage with coverage on the exchange. The coverage will be effective no later than the first of the next month after an individual’s enrollment.

Although this change affects the individual market, employers should keep this in mind as it would likely create a qualifying event that would allow for an employee to potentially drop employer coverage (for themselves or their dependents) to go on the New Jersey exchange.

Bulletin No. 21-03 »