New Eligibility Issues for New Jersey Workers

On December 17, 2010, President Obama signed into law an extension for continued unemployment insurance benefits into the year 2011.  Now that the extension may be available to workers who have exhausted their regular unemployment insurance benefits, the issue remains whether an unemployed individual is eligible for unemployment insurance benefits in New Jersey.  On July 2, 2010, Governor Christie signed into law changes to the unemployment insurance eligibility for New Jersey applicants.

A key provision changes unemployment insurance eligibility for workers who are fired for misconduct or who voluntarily quit their jobs. The proposed eligibility requirements are more stringent, particularly for workers fired for “severe misconduct.” A three-tiered structure has been established — simple misconduct, severe misconduct and gross misconduct — which either prohibits payment of unemployment insurance benefits or extends the waiting period before benefits can be paid.

Under the old law, individuals could be disqualified from unemployment insurance benefits under the following circumstances: (1) voluntary resignation; (2) misconduct; (3) failure to apply for or accept suitable work; (4) involvement in a labor dispute; (5) receipt of money in lieu of notice; (6) receipt of other benefits (such as workers’ compensation or temporary disability); (7) fraud and (8) participation in a training program. Under the old law, if an employee is terminated for misconduct, then the penalty would be for that employee to be disqualified from receiving unemployment insurance benefits for six weeks. After the six week period was over, the applicant would still be able to obtain the remainder of his unemployment insurance benefits.

The new law extends the disqualification period and adds another circumstance under which an individual could be totally disqualified from claiming any unemployment benefits. Now, if a claimant is found to have committed “simple misconduct,” such as insubordination or consistent lateness or absences, although not having received written warnings from your employer, then the claimant may be disqualified for the first eight weeks.  After the eight week period was over, the applicant would still be able to obtain the remainder of his unemployment insurance benefits.

If a claimant is found to have committed “severe misconduct,” then he will receive total disqualification from all benefits for the entire period of unemployment until he works in new employment four (4) weeks and earn six (6) times his weekly benefit amount and becomes separated through no fault of his own.  Examples of severe misconduct are: use of drugs/alcohol on the job, repeated violations of a company rule, continued lateness or absences after receiving a written warning from your employer, destruction/theft of company property or misuse of benefits.

If a claimant was fired for any reason that is serious enough to be considered a crime of the first, second, third or fourth degree under the New Jersey Code of Criminal Justice, then the claimant may be disqualified from collecting benefits indefinitely under “gross misconduct.” To remove a “gross misconduct” disqualification, a claimant must return to work for at least eight (8) weeks, earn ten (10) times his weekly benefit rate, and become unemployed through no fault of his own.

If an applicant has been denied unemployment insurance benefits due to the new “severe misconduct” category or for any of the misconduct categories, then he should immediately request a hearing before an Appeal Tribunal and seek the advice of an attorney.   Call Kamensky Cohen for more details and assistance in any legal issues you may have regarding your unemployment benefits.  (609) 394-8585.