SENATE LABOR COMMITTEE
STATEMENT TO
SENATE, No. 2306
STATE OF NEW JERSEY
DATED: MARCH 14, 2024
The Senate Labor Committee reports favorably Senate Bill No. 2306.
This bill, titled the “New Jersey Works Act,” provides a financial incentive for businesses to establish pre-employment and work readiness training programs in partnership with institutions of higher education, comprehensive high schools, county vocational schools, and nonprofit organizations. Under the bill, a business entity may receive a credit against the corporation business tax or gross income tax for 100 percent of any financial assistance provided to support a qualified pre-employment and work readiness training program approved by the Department of Labor and Workforce Development (DOLWD). A maximum of $12 million in tax credits per State fiscal year is allowed to be granted to taxpayers for assistance provided to institutions of higher education, secondary comprehensive schools, vocational schools, or nonprofit organizations for approved pre-employment and work readiness training programs.
The bill requires an institution of higher education, comprehensive high school, county vocational school, or nonprofit organization that has entered into a partnership with a business entity to submit a pre-employment training plan for approval by the DOLWD. Each pre-employment and work readiness training program is required to offer at least 12 weeks of paid training at the minimum wage for each participant, and include, but not be limited to, instruction and training in basic math and English literacy, communication skills, critical thinking, leadership, life skills and job readiness skills training, and any other training deemed necessary by the DOLWD. A single pre-employment and training plan may be submitted by multiple institutions of higher education, comprehensive high schools, county vocational schools, or nonprofit organizations, but the plan must designate one entity as the lead organization for the plan.
The bill requires that program participants be at least 16 years old. Whether a trainee possesses a high school diploma or high school equivalency diploma may not be considered in determining eligibility to participate. Each program is required to offer trainees employment with a business entity which has provided funding for the program.
The bill requires the DOLWD to review each pre-employment training and work readiness plan to determine if it qualifies for financial assistance for which a tax credit may be granted. Each program must consist of pre-employment and work readiness training activities that will provide low- and moderate-income trainees and persons in need of mid-career training with skills training or vocational retraining. The institution of higher education, comprehensive high school, county vocational school, or nonprofit organization is required to demonstrate that it has the capacity to implement the pre-employment training plan, provide adequate assurances that the assistance provided by a business entity will be expended exclusively to implement the plan, and provide documentation of completion rates under the plan.
The bill appropriates from the General Fund to the DOLWD and the Division of Taxation in the Department of the Treasury such funds as are necessary to administer the program.