New Jersey S.2357: What Employers Should Expect

Having spent decades working with unemployment programs across the country—from state agencies to employer groups to TPAs—I’ve seen many changes in how states administer unemployment claims. Some changes feel routine. Others signal a shift toward modernization. New Jersey’s recent passage of S.2357 falls into the second category.

The law is designed to improve communication between employers and the New Jersey Department of Labor (NJDOL) by ensuring the state receives separation details sooner and more consistently. Recently, the Association of Unemployment Tax Organizations (AUTO) asked NJDOL to clarify several operational questions. The department’s written responses finally give employers a clearer picture of what to expect as the state moves forward with implementation.

Below is a practical, easy-to-digest summary of what New Jersey employers should know.

1. The Heart of S.2357: Two Options for Employers

NJDOL has confirmed that employers have two ways to meet the new requirement. Employers do not have to do both—just one.

You must either:

Option 1 — Respond to the UI claim notice within 7 days, or

Option 2 — Provide the separation information in the employer portal within 7 days of separation.

Either option satisfies the requirement on its own.

Submitting the separation information at the time of separation is preferred because it gives the agency a head start and often leads to quicker, more accurate determinations. However, NJDOL emphasized that this is not mandatory. If an employer simply responds to the initial claim notice within the 7-day timeframe, the requirement is considered met.

This clarification should bring relief to many employers who feared the law imposed two separate, and potentially duplicative, steps.

2. About That $500 Penalty…

You may have heard S.2357 includes a $500 penalty for failing to provide separation information.

Here’s what NJDOL shared:

• The penalty remains part of the statute.
• NJDOL is not enforcing it at this time.
• The agency wants to give employers time to adjust to the new system.
• Enforcement could begin at a later date once the system is fully operational.

In short, the penalty exists, but employers should focus on learning the process rather than worrying about fines right now.

3. Employer Access (EA) Portal Registration: The First Step

To participate in the new reporting process, employers must activate their Employer Access (EA) account within the MyNewJersey system.

NJDOL clarified the following:

• Employers need a unique authorization code to register.
• These codes were mailed to employers in July 2024.
• A follow-up statewide mailing is planned for January 2026 for employers who didn’t receive or misplaced their code.
• Employers must register before a TPA can link to their account.
• After the employer registers, the TPA can request access using the employer’s EIN and authorization code.
• The employer then approves (or denies) the request via email.

Registration is truly the gateway to everything else. Without it, employers and TPAs cannot begin using the new separation reporting system.

4. Submitting Separation Details Early: How NJDOL Uses the Data

Many employers asked how the state will handle separation information submitted before a former employee files a UI claim.

NJDOL shared the following helpful process:

• Early separation details will be stored in the system but not acted upon immediately.
• The system will crossmatch this information daily against new UI claims.
• When a match occurs, the claimant will receive a fact-finding questionnaire that includes the employer’s earlier statement.
• If the employee never files for benefits, nothing is sent to the individual—and the information simply remains on record.

This optional early submission can improve accuracy and reduce back-and-forth between employers, claimants, and the agency.

5. Practical Advice Moving Forward

Based on NJDOL’s responses, here’s what I would advise employers right now:

1. Register your EA account as soon as you have your authorization code—this unlocks everything.
2. Choose the approach that best fits your workflow: respond to the claim within 7 days OR post the separation at the time of separation.
3. Don’t stress about penalties right now but do build good habits early.
4. Stay in communication with your TPA so responsibilities are clear and aligned.
5. Expect further refinement, as with any modernization effort, changes may continue as the system evolves.

New Jersey’s intent is not to burden employers but to create a more consistent and efficient UI process. With clear expectations and the ability to choose the method that works best for your organization, compliance should feel manageable—not overwhelming. Experian Employer Services will continue to provide updates and best practices as available.