Legislation that would prevent an automatic $350 million payroll tax increase on employers cleared the Assembly Appropriations Committee on June 5. The bill, S-1698 (Buono)/A-2801 (Greenwald, Milam), would add $260 million to the Unemployment Insurance (UI) fund so it can continue to pay claims. Without the money, employers’ payroll taxes will automatically increase on July 1 by 15 percent. The bill now heads to the Assembly floor for final legislative approval.

The money is needed to shore up the balance in the UI fund, which has dropped considerably because the State has continually diverted past payroll taxes that were supposed to be dedicated to unemployment benefits. While Governor Jon Corzine is the first Governor in recent memory not to raid the UI fund, past governors diverted $4.7 billion in UI tax revenues over the last 14 years. The $260 million would replace some of that money and keep the fund solvent for at least a year. For more information, contact at ext. 247.

Greater Efficiency, Use of Renewable Energy Is Key to Controlling Energy Costs, State Officials Say

Projects delayed by the economic downturn would not lose their existing permit approvals under legislation released by the Assembly Housing and Local Government Committee on June 5. Known as the Permit Extension Act of 2008, the bill, A-2867 (Greenwald, Malone), would extend to December 31, 2012, the expiration date of all State and local government approvals issued since January 1, 2006. The permitting process in New Jersey is extremely time-consuming and expensive. In many cases, projects must obtain dozens of permits from five levels of government. Permits can easily take five years and hundreds of thousands of dollars to secure. But the housing mortgage crisis, the tightening of the credit markets, and other economic factors have delayed financing for many projects that have already successfully completed the arduous permitting process. At a time when the State economy desperately needs such projects to move forward, it makes no sense to force them to navigate the entire time-consuming permitting process again because of an arbitrary deadline.

The State’s previous Permit Extension Act was a great success. The extension of government-issued permits in 1992 proved to be a successful economic stimulus, and it was later extended for another two years, providing a total extension of eight years. It stabilized the construction workforce, accelerated construction activity during a recession and created jobs, all without negatively impacting the environment. For more information, contact at ext. 247.

Senate Labor Committee Acts on Changes to Workers’ Compensation System

The Senate Labor Committee on June 5 released legislation that would make some modifications to New Jersey’s workers’ compensation system. Employers are required to purchase workers’ compensation insurance to cover work-related injuries to their employees. New Jersey’s current workers’ compensation system works well and should be fundamentally maintained. The system, funded entirely by employers, provides generous benefits at reasonable premium costs. In fact, even though New Jersey has among the highest labor costs of any state in the nation, it is ranked only 23rd in workers’ compensation costs. Here is a summary of the bills the committee released.

S-1914 (Sarlo, Cunningham) - Would make it a third-degree crime to knowingly fail to provide required workers’ compensation insurance. The bill was amended to clarify that only deliberate failures, not oversights or clerical errors, would be subject to criminal penalties. NJBIA supports the bill. Businesses that deliberately avoid their workers’ compensation obligations increase insurance costs for all other businesses.

S-1917 (Sarlo, S. Kean) - Would increase the membership of the Compensation Rating and Inspection Bureau, which sets the rules and premium rates for workers’ compensation insurance. The bill would add one member each from a Statewide business organization, a Statewide labor organization, and the public at large. NJBIA supports the bill.

S-1918 (Sarlo, Madden) - Would authorize the Insurance Fraud Prosecutor to prosecute cases where employers fail to provide workers’ compensation insurance. NJBIA supports the bill.

Twelve Projects Win 2008 New Good Neighbor Awards

Twelve new construction and renovation projects were honored June 6 at the 48th Annual New Good Neighbor Awards Luncheon. Hosted by NJBIA and New Jersey Business Magazine, the event was held at the Woodbridge Hotel and Conference Center. This year’s winners are:

• AAA Mid-Atlantic Operations Center, Hamilton (Mercer County)
• Berkeley College, Newark
• The Grand Cascades Lodge at Crystal Springs Resort, Hamburg
• Metropolitan Plant and Flower Exchange, Fort Lee
• Paterson Market Growers, Paterson
• Pepsi Bottling Group, Kearny
• The Roebling Mansion/NJ State League of Municipalities Headquarters, Trenton
• sanofi-aventis US Headquarters, Bridgewater
• Sheraton Meadowlands Hotel and Conference Center, East Rutherford
• Washington Park Fidelco LLC, Newark
• Raritan Valley Community College West Building, North Branch
• Visiting Nurse Association of Somerset Hills, Somerset Hills

NJBIA Government Affairs Publications Available Now Online

NJBIA produces many publications to alert our member companies to the legislative and regulatory actions in Trenton that impact their businesses. Each publication is a useful guide designed to help your company keep up with the latest developments in Trenton and stay in compliance. Access publications online.

Seminar: Hot Legal Topics for Employers, June 17

This half-day seminar is a must for human resources managers. NJBIA will bring together some of NJ’s foremost HR attorneys to cover critical workplace issues, such as paid family leave, hiring and firing, wage- and hour-compliance, and discrimination and harassment. Our panelists will cut through the legal jargon and tell you what you need to know to avoid legal liability. Register online now, or for more information, contact at 609-393-7707, ext. 213.