SENATE LABOR COMMITTEE

STATEMENT TO

SENATE, No. 788

STATE OF NEW JERSEY

DATED:  MARCH 3, 2025

      The Senate Labor Committee reports favorably Senate Bill No. 788.

      This bill exempts from coverage under the “unemployment compensation,” R.S.43:21-1 et seq., any services provided by a volunteer first responder who receives a stipend, including any clothing allowance, for the volunteer’s services if the stipend is less than the amount that would be regarded as compensation subject to the National Labor Relations Act.  The exempted first responder would not be subject to unemployment insurance (UI) taxes and not be eligible for UI benefits.  The exclusion would also exclude the first responder’s stipend from contributions to the temporary disability and family temporary disability benefits funds, and it would exclude the first responder from being eligible to receive those benefits for the volunteer first responder services.

      Under the bill, “volunteer first responder” means a volunteer firefighter, volunteer member of a duly incorporated first aid, emergency, ambulance, or rescue squad association, or any other individual who, in the course of volunteer services, is dispatched to the scene of a motor vehicle accident or other emergency situation for the purpose of providing medical care or other assistance.

      Additionally, the bill excludes from gross income the amounts received through stipends, including any clothing allowance, provided by a municipality for services performed by a volunteer first responder. 

      Recently, municipalities have found it more difficult to recruit volunteers to serve as emergency services personnel.  In response, many have begun providing stipends to help alleviate staffing shortages.  Although they provide a greater incentive to volunteer, the amounts received through these stipends are subject to State and federal income tax.  By exempting these stipends from calculation of a taxpayer’s gross income under State law, the State can further assist municipalities in their efforts to provide proper emergency services to their residents.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.