GBV Obtains Decision Invalidating State Unemployment Compensation Regulation

August 1, 2007

GBV partners Francis J. Vernoia and Kathleen Barnett Einhorn have obtained a significant decision from the Appellate Division of the Superior Court of New Jersey, declaring a New Jersey Department of Labor Regulation (N.J.A.C. 12:17-9.6) invalid.  In an August 1, 2007, decision, the Appellate Division held that the regulation, which authorized unemployment compensation benefits for employees who voluntarily accepted an employer's separation package "so that another employee could continue to work," was inconsistent with the New Jersey Unemployment Compensation Law, N.J.S.A. 43.21-5(a) and the New Jersey Supreme Court's decision in Brady vs. Board of Review, 152 N.J. 197 (1997).  A copy of the decision is available at