Construction contractors would be presumed to have an employer-employee relationship subject to New Jersey’s employment laws unless they can prove otherwise to the NJ Department of Labor and Workforce Development (LWD), according to legislation released February 26 by the Assembly Labor Committee. The bill, A-4009 (Caraballo, Egan), also would criminalize the misclassification of employees as independent contractors by making a “knowing” violation a third-degree crime and a “reckless” violation a fourth-degree crime. It now heads to the full Assembly for consideration.

NJBIA opposes this bill. The Association believes that intentionally misclassifying workers hurts both reputable employers and employees alike and should be punished with civil penalties. But hitting contractors with criminal penalties that are felony crimes goes too far. Furthermore, these penalties apply not only to the employer, but also to any “officer, agent, superintendent, foreman or employee of the employer.” Since the criminal intent required for these offenses could be mere recklessness, this could subject an employee to criminal liability despite the fact that the employee had no clear intent to misclassify the worker.

Finally, the bill provides unprecedented authorization to the Commissioner of Labor to shut down any and all job sites of a contractor who violates the act, even if the violation occurred at only one site. This provision would put people out of work for significant periods of time for the bad actions of a single individual. For more information, contact John Rogers at ext. 209.

House Votes for Instant Unions, No Elections Needed—The House of Representatives voted March 1 to allow union organizers to create unions without the secret-ballot elections that are the hallmark of labor relations and American democracy. The House voted 241 to 185 for H.R. 800 (Miller, D-CA). The bill would take away the rights of employers to demand secret-ballot votes on recognizing a union. Instead, it would authorize the “card check” method, in which a union would be certified as soon as a majority of workers at a business sign cards saying they are interested in joining a union. No election would be held. The vote was largely along party lines, with most Democrats supporting the bill.

NJBIA strongly opposes these so-called “card check” bills, whether imposed at the state or national level. Employees should not be denied the opportunity to hear their employer’s point of view or to weigh the pros and cons of unionization before making a decision. Union organizers could easily pressure employees into signing cards. The only way to protect the right of employees to make an informed decision is to hold an election, as the law currently provides. When employees get to hear both sides of a unionization argument, employers win about half of the union elections. For more information, contact John Rogers at ext. 209.

Bill Expanding Business Closing Notification Requirements Ready for Final Vote—Legislation that would impose greater notification requirements and penalties on companies undergoing layoffs cleared the Senate Labor Committee on February 26. With Assembly approval already received, the bill, A-1044 (Van Drew, Johnson)/S-472 (Sweeney, Doria) is now poised for final legislative approval by the full Senate.

The measure would require employers with 100 or more employees to provide 90 days public notice before closing a business or laying off 50 or more employees within a 30-day period. If employers miss the notice requirements by even a single day, the bill would require them to pay employees the equivalent of one week’s wages for each year of employment. NJBIA opposes this bill because it would go far beyond the requirements of federal law or business-closing laws in any other state. Federal law requires only 60 days notice and does not penalize businesses with huge severance payments that could cost an employer hundreds of thousands of dollars.

Businesses that lay off employees are usually struggling financially. Imposing these restrictions and onerous penalties at a time when a business is struggling to remain solvent would only aggravate its difficulties by chasing away suppliers and customers, costing New Jersey more jobs in the long run. For more information, contact John Rogers at ext. 209.

Greenhouse Gas Limits Get Environment Committee OK—Despite potentially serious economic impacts, the Assembly Environment Committee on February 26 released legislation to limit emissions of greenhouse gases to 1990 levels (roughly a 20 percent cut from current levels) by 2020. The bill, A-3301 (Stender, Vainieri Huttle), is awaiting action in the Assembly Telecommunications and Utilities Committee.

Regulating greenhouse gas emissions is expected to increase the cost of electricity as energy generation is one of the leading sources of those emissions. Commercial and industrial users in New Jersey already pay among the highest rates in the nation. Attempts to regulate greenhouse gases would likely put limits on how much energy businesses can use, mandate use of more expensive building materials and techniques in construction, and increase taxes on the use of energy.

Additionally, New Jersey should not impose arbitrary greenhouse gas limits before the State’s Energy Master Plan is completed. Finally, the bill would have virtually no impact on global warming. For more information, contact Sara Bluhm at ext. 204.

Expansion of Wrongful Death Lawsuits Released from Committee—Legislation that would expand how much plaintiffs could receive in wrongful death lawsuits and expand the number of people who can sue was released February 26 by the Assembly Judiciary Committee. NJBIA opposes the bill because the expanded damages and litigation could result in increased insurance premiums for employers for automobile insurance, product liability, general liability and medical malpractice insurance. Employers are already struggling financially. The increased costs to their business either through increased lawsuits or higher insurance premiums will be difficult to handle. For more information, contact Christine Stearns at ext. 260.

NJBIA President to Give Economic Forecast March 16 at Middlesex Chamber Summit—Philip Kirschner, president of New Jersey Business & Industry Association, will be a speaker on the Economic forecast panel at the Central Jersey Business Conference on March 16. This event will take place from 8:00 to 9:30 a.m.at the NJ Convention Center, Raritan Center, Edison. It will be followed by concurrent seminars, while over 200 exhibitors from around the region are available to discuss doing business with you.

The third annual Middlesex County Business Week 2007 is scheduled for March 12 -16. This weeklong event is designed to celebrate the achievements of business and community leaders. Event highlights include: the new Central Jersey Business Conference; “Go Global” Economic Summit; Annual Business Awards Breakfast; and over fifteen seminars countywide. Additional details on registration or sponsorship for this event and the entire week of seminars are available at 732-821-1700 or www.mcrcc.org.

Learn How to Manage Your Human Resources at NJBIA's HR101 Seminar, March 9—For the small or mid-size company, NJBIA is offering this seminar on how to manage your human resources. The seminar will run from 8:30 a.m. to 12:30 p.m. at the Sheraton in Eatontown, NJ (near exit 105 of the Garden State Parkway). The cost is $109 per person for NJBIA members, $139 for nonmembers. For more information contact Alex Hollywood at 609-393-7707, ext. 262, or register online now. Sponsorship opportunities are $1,000 for NJBIA members, $1,500 for nonmembers. To become a sponsor contact Sherry Esteves at ext. 219.

Meet the Legislative Leaders: South Jersey, March 28—At this briefing breakfast, to be held at the Mansion on Main Street in Voorhees, you will hear from invited legislators Louis Greenwald, Assembly Budget Committee Chairman; Stephen Sweeney, Senate Labor Committee Chairman; Martha Bark, Senate Republican Conference Leader; and Francis Bodine, Assembly Republican Deputy Leader.

The event will begin at 7:30 a.m. with a full breakfast and a brief overview of NJBIA's legislative agenda. Our panel of legislative leaders will offer their thoughts and answer your questions about health insurance costs, state and local taxes, environmental fees and permits, energy costs and other issues impacting your business. Legislators from throughout the region will also be invited to attend, making this a tremendous networking event. The cost is $69 per person for NJBIA members, $105 for nonmembers. For more information, contact Katie Wittkamp at 609-393-7707, ext. 239, or register online. To become a sponsor contact Sherry Esteves at ext. 219.

Meet the Governor's Chief Advisors, April 11—NJBIA will continue its Meet the Decision Makers breakfast series on Wednesday, April 11 at the Forsgate Country Club in Monroe Township (just off Exit 8A of the NJ Turnpike) with top representatives of the Governor's office including Chief of Staff Thomas Shea, Chief Counsel Ken Zimmerman and Policy Counsel Heather Howard. Register for this event now.

You can also register for our Tuesday, May 1, breakfast with State Treasurer Bradley Abelow, which will take place at the Holiday Inn East Windsor (just off Exit 8 of the NJ Turnpike).

Each breakfast will be held from 7:30 a.m. to 10:00 a.m. The cost to attend each breakfast is $69 per person for NJBIA members and $105 for nonmembers. For more information, or to become a sponsor, contact Sherry Esteves at 609-393-7707, ext. 219.

New Good Neighbor Awards Advertising and Sponsorship Opportunities—The New Good Neighbor Awards annually recognize the best and most exciting commercial and industrial development projects in the State of New Jersey.

Capitalize on the high visibility of this prestigious award by taking advantage of the Advertising and Sponsorship opportunities we are offering for 2007.

• Co-sponsor the June 1, 2007 luncheon honoring the winners.

• Advertise in the June 2007 issue of  New Jersey Business Magazine.

• Maximize your visibility and save money by signing up for both.

For more information on sponsorship contact Sherry Esteves at 609-393-7707, ext. 219. For more information on advertising opportunities, contact Vincent Schweikert at 973-882-5004, ext. 110.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. Learn more about becoming an NJBIA sponsor online or contact Sherry Esteves at 609-393-7707, ext. 219.