Labor Dept. announces increase in maximum benefit rates

Business. The New Jersey Dept. of Labor and Workforce Development increased the maximum benefit rates and as of Jan. 1 for unemployment, insurance, temporary disability insurance, family leave insurance and workers' compensation programs.

16 Jan 2020 | 03:41

    The New Jersey Department of Labor and Workforce Development (NJDOL) announced increases in the maximum benefit rates and taxable wage base as of Jan. 1 for its Unemployment Insurance, Temporary Disability Insurance, Family Leave Insurance, and Workers’ Compensation programs.

    On Jan. 1, the maximum weekly benefit amount for unemployment Insurance beneficiaries increased to $713, from $696. The maximum weekly benefit for state plan Temporary Disability and Family Leave Insurance claims increased to $667, from $650, while the maximum weekly benefit for Workers’ Compensation rose to $945, from $921.

    The maximum benefit rates and the taxable wage base are recalculated each year based on the statewide average weekly wage, in accordance with the laws governing these programs. The benefit rates and taxable wage base for 2020 reflect the $1,259.82 average weekly wage for 2018, which rose by 2.6 percent from $1,228.25 in 2017. The level of wages subject to wage taxes in 2020 increased to $35,300 for employers covered under the Temporary Disability Insurance program and for workers and employers covered under the Unemployment Insurance program, the Workforce Development Partnership Program, and Supplemental Workforce Fund for Basic Skills.

    The increase in the maximum weekly benefit rate for Temporary Disability and Family Leave Insurance claims starts July 1, with an increase to $881 from $667. This represents 70 percent of the statewide average weekly wage, up from 53 percent of the average weekly wage. Additionally, the maximum amount of continuous leave will increase to 12 weeks, up from six weeks, and the maximum amount of intermittent leave will increase to 56 days, up from 42 days.