Governor Murphy’s SFY2025 detailed budget recommendations for the Department of Labor (DOL) total $207.1 million a decrease of 1.6% or $3.5 million from SFY2024 budget allocation.
The Budget and Language recommendations remain unchanged from the previous year, highlighting direct state services for SFY 2025 for management of financial resources to support labor services pending the approval of the Director of the Division of Budget and Accounting. For more on the Governor’s overall budget proposal, please see our SFY2025 Budget writeup.
Below is a review of DOL’s budget.
Public Employment Relations Commission: The recommended allocation for Public Sector Labor Relations in SFY 2025 remains steady at $4.24 million. Meanwhile, Private Sector Labor Relations sees a significant increase, with its funding rising from $500,000 to $1.3 million for SFY 2025. The Public Employment Relations Commission (PERC) focuses on public sector negotiations, managing issues such as unfair practices, and overseeing mediation, fact-finding, and arbitration processes.
NJ Apprenticeship Network: For SFY 2025, the recommended allocation for Apprenticeships shows an increase of $3.1 million, or 63.2%, bringing the total to $8 million, up from the SFY 2024 allocation of $4.9 million. The New Jersey Apprenticeship Network manages economic development through increased skills and educational initiatives. Focusing on sector-specific and demand-driven training programs that provide significant career benefits such as employment, credential advancement, diversity and inclusion, and sustainable connections between employers, training providers, and the workforce.
Temporary Disability Insurance and Workers Compensation: The State's Temporary Disability funding remains level, with the State Disability Insurance Plan's recommended allocation of $33.6 million and the Private Disability Plan's allocation of $5.6 million. For SFY 2025, the proposed funding for workers' compensation maintains the level, with $14.5 million designated for workers' compensation and $2.2 million set aside for special compensation. The Division of Workers’ Compensation enforces the New Jersey Workers’ Compensation Law, which ensures that workers receive compensation benefits, including medical and disability payments for work-related injuries. The Division also mandates that workers carry workers' compensation insurance.
Department Objective: The Department of Labor and Workforce Development (DOL) provides support to individuals seeking employment and promotes initiatives for New Jersey's various industries. The DOL ensures income security for workers who are unemployed or unable to work due to illness, accident, or injury, while also enforcing New Jersey’s labor laws and standards fairly, analyzes state economic and labor market data, supports individuals with disabilities in the workplace, promotes labor-management harmony, and ensures worker health and safety on the job.
These figures are based on the Governor’s proposal and may change based on public testimony, changes by the Legislature, and discussions with the Administration before its enactment by the end of June. The League will provide further updates as the budget process continues.