Bill Text: NJ A4109 | 2012-2013 | Regular Session | Introduced
Bill Title: Concerns certain severance payments and unemployment insurance benefits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-06 - Introduced, Referred to Assembly Labor Committee [A4109 Detail]
Download: New_Jersey-2012-A4109-Introduced.html
Sponsored by:
Assemblyman JACK M. CIATTARELLI
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Concerns certain severance payments and unemployment insurance benefits.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning severance pay and unemployment insurance benefits and supplementing chapter 21 of Title 43 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An individual shall be disqualified for benefits for any week with respect to which the individual is receiving or has received full severance pay. A lump sum full severance payment in lieu of periodic full severance payments shall disqualify the individual for the number of weeks determined by dividing the total lump sum payment by the individual's weekly wage.
For purposes of a lump sum full severance payment, the number of weeks of disqualification determined pursuant to this subsection shall be computed to the next lower multiple of one, but not less than one, if not already a multiple thereof.
b. Any week or weeks of disqualification for benefits shall reduce the maximum total benefits of the individual during the benefit year by an amount equal to the individual's weekly benefit rate times the number of weeks of disqualification determined pursuant to subsection a. of this section.
c. Nothing in this section shall be construed so as to preclude an individual, who is otherwise eligible, from receiving any State or federal extension of unemployment compensation.
For purposes of this section: "full severance pay" means severance pay equal to, or greater than, the final regular rate of compensation paid to the individual prior to the termination of employment; "severance pay" means payments made by an employer to an employee on account of separation from the service of the employer, regardless of whether the employer is legally bound by contract, statute, or otherwise to make those payments, except that "severance pay" does not include payments for pension, retirement, or accrued leave, or payments of supplemental unemployment benefits; and "weekly wage" means the amount of compensation earned by an individual in the last full week of employment before receiving a lump sum severance payment.
2. This act shall take effect immediately.
STATEMENT
This bill disqualifies an individual for unemployment insurance (UI) benefits for any week in which the individual is receiving or has received full severance pay.
The bill provides that, for purposes of a lump sum full severance payment, the individual will be disqualified for the number of weeks determined by dividing the total lump sum payment by the individual's weekly wage.
The bill requires that the number of weeks of disqualification will be computed to the next lower multiple of one, but not less than one, if not already a multiple thereof, and the disqualification will reduce the individual's maximum total UI benefits that an individual is entitled to receive.
Finally, the bill defines "full severance pay" as severance pay equal to, or greater than, the final regular rate of compensation paid to the individual prior to the termination of employment; and "severance pay" as payments made by an employer to an employee on account of separation from the service of the employer, regardless of whether the employer is legally bound by contract, statute, or otherwise to make those payments, except that "severance pay" does not include payments for pension, retirement, or accrued leave, or payments of supplemental unemployment benefits. "Weekly wage" means the amount of compensation earned by an individual in the last full week of employment before receiving a lump sum severance payment.
