On March 1, 2019, New Jersey Governor Phil Murphy signed S1567 into law requiring employers with at least 20 employees to offer a pre-tax transportation fringe benefit. Employees can decide to set aside up to $270 a month for transit passes, which can be purchased through vouchers, fare cards, smart cards, debit cards, or direct payments to a transit operator.
While not required, employers can also choose to deduct up to $270 a month for parking. The commuting benefit is not offered to employees covered by a collective bargaining contract.
It is important that employers offer this benefit to comply with IRS regulations. Employers that fail to comply with the law are subject to a penalty of between $100 to $250 for the first violation. However, before a penalty is imposed, employers will have 90 days from the date of the violation to offer the pre-tax transportation fringe benefit program.
If the 90-day cure period passes and the employer does not adopt a pre-tax transportation fringe benefit, they will be subject to a $250 penalty for each additional 30-day period in which they fail to offer the benefit. Implementation of such benefits must take place no later than March 1, 2020.
Worker Adjustment and Retraining Notification Act (WARN)
New Jersey has amended the Worker Adjustment and Retraining Notification (WARN) Act. More specifically, the WARN Act requires employers with 100 or more full-time employees to provide 90 days notice to employees affected by a mass layoff, transfer of operations, termination of employment, or termination of operations.
In addition, New Jersey will become the first state to mandate severance pay to employees separated as a result of certain layoffs, transfers, or terminations of operations even if the employer provides the requisite advance notice. The law takes effect on July 19, 2020.
The severance will be paid to both full- and part-time employees impacted by such events even if the employer complies in a timely manner with all notice requirements.
New Jersey WARN applies to employers that have an establishment in New Jersey with at least 100 full-time employees. An establishment is defined as a single place of employment that has been operated by an employer for more than three years. It may be a single location or a group of locations, such as an industrial park or separate facilities that are across the street from each other.
A full-time employee is any individual that is not a part-time employee. A part-time employee is an employee that works an average of fewer than 20 hours per week or who has been employed for fewer than 6 of the 12 months preceding the time when notice is required under the law.
Employers must provide 90 days’ notice to affected employees before the first termination of employment occurs in connection with a mass layoff, transfer of operations, or termination of operations. The notice must be provided if 50 or more full-time employees are impacted and must be given to the affected employees and the NJ Commissioner of Labor and Workforce Development.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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