Diegnan Bill to Incentivize Businesses to Keep Jobs in New Jersey Instead of Outsourcing them to Another Country Passes Committee

TRENTON – Legislation sponsored by Senator Patrick J. Diegnan, Jr. that would establish two instances in which an employer that has a call center in New Jersey would be required to provide a notification to the Commissioner of Labor and Workforce Development passed the Senate Labor Committee today.

“If we are giving taxpayer dollars to companies in order for them to create jobs in New Jersey, there is no reason they should turn around and start outsourcing those jobs to another country while still maintaining the same level of financial support,” said Senator Diegnan (D-Middlesex).  “These businesses got taxpayer dollars to create jobs in New Jersey.  If they’re outsourcing New Jersey jobs, they shouldn’t get New Jersey taxpayer support.”

The bill, S-1780, would first be if a call center fails to maintain an adequate amount of staff necessary to handle at least 70% of the customer call volume that originates from New Jersey.  In this case the bill would require the employer to provide notification immediately.  The second would be if the employer plans to relocate one or more of its facilities comprising more than 20% of its operating volume outside of the U.S.  In this case the bill would require the employer to notify the Commissioner at least ninety days prior to the relocation.

The bill would make employers subject to a civil penalty not to exceed $7,500 for each day they fail to provide notification, but would permit the Commissioner to waive this penalty.

The bill would require the Commissioner to compile and maintain a list of all employers that provide notification.  The list would be required to be updated on a monthly basis and made public on the Department’s website.  The bill would also require the Commissioner to keep employers who provide notification on the list for no more than thirty-six months after each instance of notification.

Under the bill, businesses that outsource jobs will have to pay back the unamortized portion of the tax credit they received from the state.  They would also be disqualified from receiving any direct or indirect taxpayer subsidy for three years.

The bill was released from committee by a vote of 3-0-2, and next heads to the Senate Budget and Appropriations Committee for further consideration.