NJDOL to provide $500 to new hires, cover 50% of wages during training as economy recovers from Covid-19 pandemic
Governor Phil Murphy recently announced that the New Jersey Department of Labor and Workforce Development (NJDOL) will begin implementation of the Return and Earn program. This new initiative will provide a $500 incentive for unemployed workers reentering the workforce and receiving job training from businesses with 100 or fewer employees.
“Throughout this pandemic, I have heard much about the issues facing small businesses and the dedicated, hard-working men and women who enable their success,” said Governor Murphy. “Our Administration is committed to assist businesses in hiring workers, while providing benefits to those entering and re-entering the workforce that will set them up for success in their new jobs and their future careers. This program will help both businesses and their workers, and is yet another step that we have taken to boost our economy.”
“The Murphy Administration is committed to doing everything we can to help our workers and businesses overcome the labor challenges of the economic recovery,” said Department of Labor Commissioner Robert Asaro-Angelo. “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.”
Facilitated by NJDOL’s Business Support Unit, Return and Earn will take advantage of New Jersey’s existing On-the-Job Training infrastructure to provide wage reimbursement support to New Jersey employers that hire eligible applicants with identifiable skills gaps. Employers will then be reimbursed for 50% of the wages paid for regular hours worked during the contracted employer-provided training period.
Employers can receive the wage subsidy for up to 6 months, up to the cap of $10,000 per Return and Earn employee and are limited to a total Return and Earn subsidy across all employees of $40,000.
NJDOL is currently working on the execution of this program, including developing a streamlined online application process. The general process and eligibility criteria are as follows:
- NJDOL will work with employers to identify prospective candidates for available positions.
- The employer will provide substantive On-the-Job Training at their location or, depending on circumstances, utilize approved virtual training, that result in skill badges or industry-recognized credentials.
- Eligible applicants are private and not-for-profit employers with up to 100 full-time employees.
- Candidates must be New Jersey residents working full-time (minimum 32 hours per week).
- Seasonal, part-time, commission-based, or 1099 positions are not eligible.
Additionally, many workers will be eligible for supportive services like childcare and transportation reimbursement, which have been barriers for many re-entering the workforce.
More information will be issued by NJDOL in the coming days. Employers can visit NJ.gov/labor/returnandearn to express interest in this program and receive application information as it becomes available.
The Return and Earn program is being executed in collaboration with the New Jersey Economic Development Authority (EDA) and the Office of Innovation, and is part of the Murphy Administration’s whole-of-government approach to support to the business community and its workers.
“Our small business community has been hit hard over the last 18 months, and now, as things begin to return to normal, worker shortages are threatening their ability to meet the newfound demand,” said Senator Cruz-Perez, Chair of the Senator Economic Growth Committee. “This new program will benefit both small businesses in need of new employees and workers looking to return to the workforce in a higher-skill position. Providing wage replacements will remove the burden of training new employees while also developing our state’s talent pool at a time we need it most.”
This $500 Return and Earn incentive and On-the-Job Training subsidy will be funded by $10 million in American Rescue Plan Act (ARPA) funds. Additional related supportive services will be funded by Workforce Innovation and Opportunity Act (WIOA) funds.