Good and Bad Bills Move in New Jersey Legislature
Two bills strongly supported by the NJCPA and other business groups were passed out of the Assembly Commerce and Economic Development Committee on May 19. Both bills provide state aid to reduce the large hikes in Unemployment Insurance Fund contributions triggered by the high unemployment rate during the COVID pandemic. One of the bills (A2152) uses federal COVID relief funds to directly provide aid to the fund. The other (A3683) provides direct tax credits to small businesses, as defined by the Small Business Administration, to offset the increase in contributions.
On the negative side, a bill that severely restricts the scope of restrictive covenants in employment agreements was released by the Assembly Labor Committee. The bill is so restrictive and broadly written that for most employers it will make the use of these covenants impossible. A broad coalition of business groups, including the NJCPA, opposes the bill (A3715).