A 5324 — Establishes fee on certain employers that employ individuals who receive health benefits coverage through State Medicaid program.

2026, c.023 (A5324 1R) TitleCHAPTER 3423 Chapter  11FAn (New)Act Employerestablishing Feea Concerningfee Certainon Employees'certain Healthemployers Benefitsthat Coverageemploy §§1-3individuals C.34:11F-1receiving tohealth 34:11F-3benefits §4coverage Notethrough  the P.L.State Medicaid program, and supplementing Title 34 of the Revised Statutes.

2026, CHAPTER 23, approved June 30, 2026 Assembly, No.

5324 (First Reprint)     An Act establishing a fee on certain employers that employ individuals receiving health benefits coverage through the State Medicaid program, and supplementing Title 34 of the Revised Statutes.

       C.34:11F-1  1.Definitions;

fee to be imposed on employers;

employers may dispute determination;

certain employees excluded.

      1.

      “Employee” means any person suffered or permitted to work by an employer, except that an independent contractor shall not be considered an employee.  For purposes of this act, the employer shall have the burden of establishing that an individual is an independent contractor,contractor by showing that the individual and the services that the individual provides meet the test for independent contractor status set forth in R.S.43:21-19.

      (1) for an employer with at least 50 but fewer than 250 employees who receive health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.), $325 for each employee, and for each of the employee’s dependents, who receives State Medicaid benefits;

      (2) for an employer with at least 250 but fewer than 500 employees who receive health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.), $525 for each employee, and for each of the employee’s dependents, who receives State Medicaid benefits;

      g.   An employer may dispute the determination that the employer is required to pay the fee established pursuant to this section by filing an appeal with the department for a review of that determination;determination, and the department shall have authority to reverse the division’s determination that the employer is required to pay the fee if it concludes the fee was improperly imposed.  An employer shall file the appeal in accordance with rules adopted pursuant to section 3 of this act and shall submit data satisfactory to the department to demonstrate that the assessment of the fee was incorrect, provided, however, the employer shall remit the fee as required by subsections b.

and the department shall have authority to reverse the division’s determination that the employer is required to pay the fee if it concludes the fee was improperly imposed.  An employer shall file the appeal in accordance with rules adopted pursuant to section 3 of this act and shall submit data satisfactory to the department to demonstrate that the assessment of the fee was incorrect;

provided, however, the employer shall remit the fee as required by subsections b.

      (2) an employee who works part-time, on a perper-diem diem basis, or who is a temporary employee;

      1k. k.   (1) An employer shall not rely upon, use, or consider information disclosing whether a job applicant or employee receives health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) as a basis for denying to the applicant or employee the opportunity to obtain or maintain employment, or to advance in position in their job.

      l.    Notwithstanding the provisions of any other law to the contrary, individually identifiable information about an employee or a dependent who receives health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) contained in data prepared for the purposes of implementing the provisions of this act shall be confidential and privileged.  The commissioner, the Director of the Division of Revenue and Enterprise Services, or any employee engaged in the administration thereof or charged with the custody of any such data shall not divulge, disclose, use for their own personal advantage, or examine for any reason other than a reason necessitated by the performance of official duties any information obtained from the data.  Individually identifiable information about an employee or a dependent shall be exempt from disclosure under P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.1act.        2.    Notwithstanding the provisions of any law or regulation to the contrary, the Departments of Human Services, Labor and Workforce Development, and the Treasury shall enter into a memorandum of understanding to share any data and other resources necessary to implement the provisions of this act to the extent allowed under federal law.

      C.34:11F-2  3.   Sharing Notwithstanding the provisions of thedata "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the State Treasurer, in consultation with the Commissioners of Labor and Workforceother Developmentresources andbetween Humandepartments. Services, may adopt, immediately, upon filing with the Office of Administrative Law, regulations that the State Treasurer deems necessary to implement the provisions of this act, which shall specify the number of days that employees, and dependents of the employees, shall be required to receive health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) and employed by an employer to cause the assessment of the fee established pursuant to section 1 of this act and the procedure for appealing the issuance of the fee.  The regulations shall be effective for a period not to exceed 365 days from the date of the filing, and the State Treasurer, in consultation with the  Commissioners of Labor and Workforce Development and Human Services, shall thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

     2.    Notwithstanding the provisions of any law or regulation to the contrary, the Departments of Human Services, Labor and Workforce Development, and the Treasury shall enter into a memorandum of understanding to share any data and other resources necessary to implement the provisions of this act to the extent allowed under federal law.

  C.34:11F-3  Regulations to be adopted, amended, and readopted.

     3.    Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the State Treasurer, in consultation with the Commissioners of Labor and Workforce Development and Human Services, may adopt, immediately, upon filing with the Office of Administrative Law, regulations that the State Treasurer deems necessary to implement the provisions of this act, which shall specify the number of days that employees, and dependents of the employees, shall be required to receive health benefits coverage through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) and employed by an employer to cause the assessment of the fee established pursuant to section 1 of this act and the procedure for appealing the issuance of the fee.  The regulations shall be effective for a period not to exceed 365 days from the date of the filing, and the State Treasurer, in consultation with the Commissioners of Labor and Workforce Development and Human Services, shall thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

                                            EstablishesApproved feeJune on30, certain2026. employers that employ individuals who receive health benefits coverage through State Medicaid program.