$500 For New Hires At NJ Businesses: See New Incentive Program

NEW JERSEY — New Jersey has launched a new program that helps unemployed residents as they return to work, and small businesses as they struggle to find new employees, Gov. Phil Murphy announced on Monday.

“We must have a state economy that is stronger, fairer, more equitable and more inclusive than the one that we had pre-pandemic,” Murphy said during a news conference.

“Most especially, the small businesses that are not just the cornerstones of our communities, but the backbone of our state’s economy,” Murphy said. “We recognize that we need to do more to help the job seekers that are most vulnerable, such as the long-term unemployed and those switching to new industries and careers, regardless of whether or not their economic dislocation was due to the pandemic.”

Dubbed “Return and Earn,” the new program offers $500 to new hires for small businesses that employee 100 or fewer people for jobs that pay at least $15 an hour. The subsidy will be funded by $10 million in American Rescue Plan Act (ARPA) funds.

"I would characterize it as a PILOT," Murphy said. "We're going to put $10 million into it and get it off the ground. If the uptick is as high as we anticipate it will be, we'll amp that up."

Additional related supportive services will be funded by Workforce Innovation and Opportunity Act (WIOA) funds.

The state Department of Labor will help small businesses identify prospective candidates, who will all be New Jersey residents who work full-time (32 hours a week). Seasonal, part-time, commission-based, or 1099 positions are not eligible.

Through the program, businesses can receive a wage subsidy up to six months or $10,000 per new employee hired under the program. The subsidy is capped at $40,000 across all employees.

“Returning to work comes with some of its own costs,” Murphy said. “For instance, the cost of transportation, or child care, and this benefit is designed to help workers meet these costs.”

While unemployment has plagued New Jersey - and all states - throughout the pandemic, the Garden State saw gains in total non-farm work for the eighth straight month, according to the U.S. Bureau of Labor Statistics. This included 10,200 new private sector jobs, and 10,100 new public sector jobs.

New Jersey has now recovered 468,600 jobs, or about 65 percent, of the number lost in March and April 2020 due to the coronavirus pandemic and measures taken in response to it.

But this program does more than just help residents find work, Murphy said.

Businesses will provide on-the-job training to help the new employees earn credentials that will be recognized industry-wide. Employers will then be reimbursed for 50 percent of the wages paid for regular hours worked during the contracted employer-provided training period.

The state Department of Labor will help small businesses identify prospective candidates, who will all be New Jersey residents who work full-time (32 hours a week or more).

“Employers, especially small businesses, face challenges in finding the workers they need and investing in training them,” Murphy said. “Job-seekers have better outcomes in training programs that combine work and learning, but many small businesses simply do not have the resources to support new hires who need on-the-job training.”

“The Murphy Administration is committed to doing everything we can to help our workers and businesses overcome the labor challenges of the economic recovery,” Department of Labor Commissioner Robert Asaro-Angelo said. “The Return and Earn program will assist New Jerseyans in returning to the workforce, and provide employers with the resources they need to fill the vital positions that will allow them to grow and thrive. The pandemic may have put our workers through the ringer, but this Administration is prepared with the tools to get every Garden State worker back on track and earning a steady income.”

The "Return and Earn" program is being executed in collaboration with the New Jersey Economic Development Authority (EDA) and the Office of Innovation.

Employers can visit NJ.gov/labor/returnandearn to express interest in this program and receive application information as it becomes available. New Jersey job-seekers can visit CareerServices.nj.gov for help finding gainful employment opportunities.