NJ expands program offering $500 bonus for unemployed workers who return to labor force
The New Jersey Labor Department said Friday that it would expand a program meant to entice unemployed people back into the workforce and help employers deal with labor shortages that have persisted since the pandemic started.
Called Return and Earn, the program offers $500 back-to-work bonuses for employees and covers half the costs of training new hires for up to six months. Both are paid through employers, which are reimbursed by the state.
Gov. Phil Murphy unveiled the program in September 2021, at a time when businesses complained they couldn’t find enough staff and the state jobless rate stood at 6.2%, according to federal data. As of February, that had fallen to 3.5%, according to the U.S Bureau of Labor Statistics, with 168,600 New Jerseyans collecting unemployment.
Expanded eligibility requirements
On Friday, the Labor Department said it was expanding eligibility for Return and Earn, from businesses with 100 or fewer employees to those with 500 or fewer. The state will now reimburse training costs for as much as $20,000 per employee and $200,000 across all employees, up from the previous limits of $10,000 and $40,000, respectively.
Lackluster interest in earlier incentives
Murphy allocated $10 million in federal COVID relief funds for Return and Earn. But the program initially struggled to attract interest from employers. An investigation by the news site Gothamist last year found paltry use of the incentive: $289,400 in wage subsidies had been paid to businesses for hiring 165 workers through April 2022.
Many employers didn’t know about the program, according to the Gothamist investigation, while others complained of bureaucratic snags. The Labor Department didn't return calls on Friday asking about more recent utilization numbers.
Related: Were you overpaid in NJ unemployment benefits? Here's what to do
How to apply for Return and Earn
Employers can apply online via NJ.gov/labor/returnandearn. Their training plans must be approved by the state before they can participate in the incentive program.
State officials said they're providing outreach to industries hit particularly hard by the COVID-19 pandemic, including manufacturing, transportation, supply chain, logistics, health care, retail, leisure and hospitality.
Who's eligible
The state outlined the eligibility criteria:
State Labor Department works with interested employers to identify prospective candidates for available positions.
The employer provides substantive on-the-job training at its location or, depending on circumstances, uses approved virtual training that results in skill badges or industry-recognized credentials.
Eligible applicants are private and not-for-profit employers with up to 500 full-time employees.
Candidates must be New Jersey residents working full time (minimum 32 hours per week).
The positions must pay at least $16 per hour.
Seasonal, temporary, part-time, commission-based or 1099 positions are not eligible.
Additionally, many workers are eligible for supportive services like child care and transportation reimbursement, which have been barriers for many reentering the workforce.
“The expansion of the Return and Earn program ensures we’re reaching every corner of the workforce, providing workers with training for a rewarding career and employers with the resources to grow and thrive,” said Labor Commissioner Robert Asaro-Angelo.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; Twitter: @danielmunoz100
This article originally appeared on NorthJersey.com: NJ expands Return to Earn work program for unemployed workers
