TO: Members of the Assembly Appropriations Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                           A-5691/S-3714 (Greenwald/Murphy/Verrelli/Madden/Gopal)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to express our support for A-5691/S-3714 (Greenwald/Murphy/Verrelli/Madden/Gopal), which clarifies and updates an earlier law intended to provide relief for employers, including those in the nonprofit community, that have been forced to reduce staff levels due to the COVID-19 pandemic.

A-5691/S-3714 (Greenwald/Murphy/Verrelli/Madden/Gopal), provides that employers that reimburse the state for unemployment claims are not liable for any portion of the payments of unemployment benefits that are not paid by the federal government pursuant to the CARES Act, the American Rescue Plan Act, or any other applicable federal law. The American Rescue Plan now covers 75 percent of a nonprofit employer's unemployment insurance payments. This legislation that would update coverage, initially written in response to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to cover the remaining 25 percent for nonprofit and government employers.

Nonprofits proved more critical than ever last year, working tirelessly to provide essential services within their communities during the pandemic. However, not-for-profits were not immune from the impact that COVID-19 had on their operations, and many nonprofits had to make the difficult choice to reduce staff or services to stay operational for the communities they serve. These nonprofits are now facing devastating unemployment charges that for-profit businesses have not had to pay during the worst stages of the pandemic and economic downturn.  

The CCSNJ was proud to support previous legislation, that was signed into law by Governor Murphy, S-3011, which intended to exempt any not-for-profit employer that elects to make direct payments, in lieu of taxes, for unemployment insurance compensation paid to laid-off employees during pandemic. The CCSNJ equally supports this corrective legislation on behalf of our approximately 100 nonprofit member companies.

For these reasons, the CCSNJ urges you to support A-5691/S-3714 (Greenwald/ Murphy/ Verrelli /Madden/Gopal)