New Jersey Employment Law Alert: Mandatory Separation Reporting

Beginning December 8, 2025, New Jersey implemented a significant change to how employers must report employee separations to the New Jersey Department of Labor and Workforce Development (NJDOL). These changes are designed to modernize unemployment insurance reporting and help the state process claims more quickly and accurately – but they also introduce new compliance obligations for business regardless of their size.

Under the updated rules, all employers in New Jersey must report employee separations electronically through the State’s Employee Access Portal. This means employers must proactively report separations, including terminations, resignations, layoffs, retirements, and other forms of job separation – regardless of whether the employee files for unemployment benefits. This requirement applies to all employers subject to New Jersey’s unemployment insurance laws – which generally includes any business with one or more employees where these laws apply.

Previously, employers only had to respond when a separated employee filed for unemployment benefits. This new law makes reporting immediately and directly to the NJDOL.

To comply with the new law, employers must:

1. Register for an Employee Access Account. Employers need to set up an online account with the NJDOL Employer Access System. If you have not registered yet, you can do so by going to this link.
2. Report separation details online. Using the portal, employers must complete and submit separation details soon after the employee leaves. The online process guides employers through the necessary steps and asks follow-up questions to ensure complete information is provided.
3. Submit within required timeline. Although, initial guidance is that the information should be reported when the employee separates, some agencies interpreting earlier parts of the statute recommend employers submit separation data within seven (7) days of separation or within seven (7) days after receiving notice of an unemployment claim.
4. Keep copies of confirmations. Always save confirmation receipts and reference numbers – these helps demonstrate compliance if there is ever a future audit.
5. Provide the BC-10 Form to the Worker. Employers must continue to give the separated employee the traditional BC-10 notice with instructions about filing for unemployment benefits.  The new law does not change this requirement.
6. Report to NJDOL Directly. In addition to providing the BC-1o to the employee, the employer must now report separation data directly to the NJDOL – not just respond to an unemployment claim if the former employee files one.

Practical Takeaways for Employers

These developments reflect New Jersey’s increasing emphasis on regulatory compliance and enforcement. Employers should take proactive steps to:

• Ensure registration and operational readiness for the Employer Access Portal
• Implement internal protocols to ensure separation reporting within seven days
• Confirm consistent delivery of the BC-10 form at the time of separation

Employers with questions regarding these new requirements or their potential impact may consult with Tara Spear, Esq. and Scott Unger, Esq. of Stark & Stark’s Employment Group to understand these new regulations, assess compliance obligations, and mitigate risk.