New Jersey Employer Penalty Threatens Jobs, Health Care Coverage and Economic Growth

WASHINGTON – A coalition of employers filed a federal lawsuit today challenging New Jersey’s recently enacted “Fair Share” law, which imposes a new penalty on employers that create jobs in New Jersey and makes it more difficult for them to provide health care coverage to their employees.

“This law amounts to a penalty on employers that create jobs, provide health care coverage and drive economic growth in New Jersey,” National Retail Federation Executive Vice President of Government Relations David French said. “Rather than working with the businesses and organizations that employ millions of people and support communities across the state to find constructive ways to provide health care to New Jersey workers, lawmakers rushed forward with a mandate that ignores federal law, imposes new penalties on employers and makes New Jersey a more difficult place to do business.”

Beyond imposing a costly new penalty on job creators, the law would force employers to redesign their health benefit plans to comply with state-imposed mandates. That requirement directly conflicts with the Employee Retirement Income Security Act of 1974, which Congress enacted to encourage employers to provide health care coverage under a uniform national framework. ERISA enables large employers to offer comprehensive, affordable coverage to employees across state lines without navigating a patchwork of conflicting state benefit mandates and reporting requirements. Allowing New Jersey's law to stand would undermine the national framework protecting employee benefits that has been in place for more than 50 years.

New Jersey’s new employer penalty legislation was rushed through without meaningful stakeholder engagement. The result is a law that is unlawful, wholly unworkable and administratively burdensome on New Jersey’s job creators.

The lawsuit was jointly filed in the U.S. District Court of New Jersey by NRF, the Restaurant Law Center, the International Franchise Association and the American Hotel and Lodging Association.

The plaintiffs are seeking declaratory and injunctive relief to prevent enforcement of the statute so they can continue to create jobs and provide meaningful health care coverage to thousands of New Jersey workers.

About NRF
The National Retail Federation passionately advocates for the people, brands, policies and ideas that help retail succeed. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs — 55 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com