November 1, 2010 - Tracking Legislation and Other Items Important to the NJ Business Community

Vote “Yes” on the Ballot Question That Would
Prevent The Diversion of Money from Dedicated Funds

The New Jersey Chamber of Commerce strongly encourages you to vote “yes” on the 2010 General Election Public Question when you go to the polls tomorrow, Tuesday, November 2.
 
Currently employee benefit funds in New Jersey are in dismal financial shape because more than $5 billion has been diverted from those funds over the past 18 years. This problem would be prevented in the future with passage of the ballot question.

If passed, the proposed constitutional amendment would require that deductions of employer and employee wages for the unemployment compensation fund, the state disability benefits fund or any other employee benefit fund be used only for their intended purposes. The Legislature and executive branch would not be allowed to borrow the funds or use them for any other purpose. Passage also would ensure that workers would receive these benefits in their time of need.

The constitutional amendment was approved unanimously by the New Jersey Senate and Assembly and would go into effect if voters approve it.

Below is a copy of the question:
 
CONSTITUTIONAL AMENDMENT TO DEDICATE ASSESSMENTS ON WAGES
BY THE STATE TO THE PAYMENT OF EMPLOYEE BENEFITS

Shall the amendment to Article VIII, Section II of the State Constitution, agreed to by the Legislature, which: prohibits collection by the State of assessments based solely on employee wages and salaries for any purpose other than providing employee benefits; dedicates all employer and employee contributions collected for any employee benefit fund, and all returns on investments of those contributions, to the purpose of that fund; and prohibits any transferring, borrowing, appropriating or using of those contributions or returns for any other purpose, be approved?

GOVERNMENT REFORM

Taxpayer Savings - S-1998 (Ruiz/D-29; Kean, T./R-21; Lampitt/D-6; DiMaio/R-23): Passed in Assembly 77-1 and sent to Governor. This bill authorizes two or more state colleges or universities to form a state college risk management group and to participate in joint liability funds, risk management programs, and related services provided by the group. Contact: Michael Egenton.

Limiting Compensation for Unused Sick Leave – S-2220 (Sarlo/D-36; Lampitt/D-6; Albano/D-1; Casagrande/R-12; Moriarty/D-4): Passed in Assembly 78-0 and sent to Governor. This bill limits compensation for retired employees of boards of education and local governments for accumulated unused sick leave to $15,000, and limits the carry-forward of vacation leave to one year. These changes, coupled with other public employee benefit reforms, will save significant taxpayer dollars. Contact: Michael Egenton.

LABOR

Assembly Labor Committee
Excessive Penalties – A-663 (Greenstein/D-14): Committee held. This bill establishes criminal penalties for failure to pay minimum wage. The bill provides that if amount of unpaid wages owed to all employees is $75,000 or more, the employer shall be guilty of a crime of the second degree. If the amount of unpaid wages owed exceeds $500 but is less than $75,000, the employer is guilty of a crime of the third degree. If the amount of unpaid wages owed is $200 or more but is not more than $500, the employer is guilty of a crime of the fourth degree. If the amount of unpaid wages owed is less than $200, the employer is guilty of a disorderly persons offense. Contact: Michael Egenton.


Prohibiting Credit Checks – A-3238 (Ramos/D-33; Tucker/D-28): Committee passed. This bill prohibits an employer from requiring a credit check on a current or prospective employee as a condition of employment, unless the employer is required to do so by law, or reasonably believes that an employee has engaged in a specific activity that is financial in nature and constitutes a violation of law. The State Chamber believes employers should not be restricted in using credit check criteria regarding candidates who seek employment. Contact: Michael Egenton.


Assembly Labor Committee A-3238 Vote: Egan, Joseph (Chair) – Yes; Evans, Elease (Vice Chair) – Yes; Albano, Nelson – Yes; Coughlin, Craig – Yes; Dancer, Ronald – No; DeAngelo, Wayne – Yes; Peterson, Erik – No; Scalera, Frederick – Yes; Webber, Jay - No

Trenton Watch is a publication of the New Jersey Chamber of Commerce. Thumbs up and down indicates the chamber’s support or opposition to issues. Questions? Call the State Chamber Government Relations Department at (609) 989-7888. Comments are always welcome.