LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4222

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JUNE 21, 2022

 

 

SUMMARY

 

Synopsis:

Expands working hours for minors; updates process for obtaining working papers for minors.

Type of Impact:

Potential increase in Gross Income Tax collections in the Property Tax Relief Fund; potential increase in State revenue collections to Unemployment Insurance Compensation fund, Supplemental Workforce Fund for Basic Skills, Workforce Development Partnership Fund, and to State Disability Benefits Fund, including the Family Leave account; potential increase in administrative State expenditures.

Agencies Affected:

Departments of the Treasury and Labor and Workforce Development.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Cost Increase

Indeterminate

 

State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that the enactment of this bill may result in an indeterminate annual increase in Gross Income Tax collections to the Property Tax Relief Fund, to the extent that the net taxable wages are not fully offset by the potential displacement of other workers.

 

·         The OLS also estimates that the enactment of the bill may lead to an increase in payroll tax collections to the Unemployment Insurance Compensation Fund,  Supplemental Workforce Fund for Basic Skills, Workforce Development Partnership Fund, and to State Disability Benefits Fund, including the Family Leave insurance account, given the increase in wages earned by minors under the bill.

 

·         The OLS notes that the bill may result in an annual indeterminate increase in State expenditures to the Department of Labor and Workforce Development tied to the requirement that the department establish and maintain a database for the employment of minors that is accessible by the public and that displays each employer that is required to register under the provisions of the bill.  The OLS notes that any cost increase would depend on operational decisions by the department, which the OLS cannot anticipate.  

 

 

BILL DESCRIPTION

 

      This bill expands working hours for minors.  The bill makes permanent P.L.2021, c.149, which expanded summer working hours for minors between 16 and 18 years of age to up to 50 hours per week for the summer of 2021.  The bill expands working hours for minors who are 14 years of age and 15 years of age to mirror federal laws for working minors.

      The bill removes authority from school districts to issue working papers for minors and establishes a centralized database within the Department of Labor and Workforce Development for minors and employers to register with in order for minors to work.  The registration is a one-time registration for minors and will be effective until the minor is no longer a minor. 

      The bill removes parental consent for a minor to work but requires the department to provide parents with an opt-out for extended summer working hours for the minor.

      The bill increases the amount of time a minor may work before a break is required from five hours to six hours.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the enactment of this bill may result in an indeterminate annual increase in Gross Income Tax collections to the Property Tax Relief Fund, to the extent that the net taxable wages are not fully offset by the potential displacement of other workers.

      The OLS also estimates that the enactment of the bill may lead to increase in payroll tax collections to the Unemployment Insurance Compensation Fund, Supplemental Workforce Fund for Basic Skills, Workforce Development Partnership Fund, and to State Disability Benefits Fund, including the Family Leave insurance account, given the increase in wages earned by minors under the bill.  These programs are funded through payroll taxes, the rates of which are set annually and applied to that year’s taxable wage base. 

      The OLS notes that the bill may result in an annual indeterminate increase in State expenditures to the Department of Labor and Workforce Development tied to the requirement that the department establish and maintain a database for the employment of minors that is accessible by the public and that displays each employer that is required to register under the provisions of the bill.  The OLS notes that any cost increase would depend on operational decisions by the department, which the OLS cannot anticipate. 

 

Section:

Commerce, Labor and Industry

Analyst:

Juan C. Rodriguez

Senior Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).