WeVote
Log In

Bill

SH

Bill

A 2038

Exempts certain volunteer first responders from coverage under "unemployment compensation law"; excludes from gross income amounts received for certain volunteer emergency services.

2026-2027 Regular Session Introduced by Shama Haider and 4 co-sponsors

The bill exempts stipends for volunteer first responders from unemployment coverage and disability benefits and excludes those stipends from New Jersey gross income.

Introduced, Referred to Assembly Labor Committee
0
WeVote Research Nonpartisan
Bill Summary · A 2038

Overview

Assembly Bill No. 2038 (A-2038), introduced in the 222nd New Jersey Legislature, would both exemptions from unemployment insurance coverage and tax treatment for stipends paid to certain volunteer first responders. Specifically, it would exclude volunteer first responders who receive stipends from coverage under unemployment compensation law and from related disability funds, and it would exclude such stipends from gross income for income tax purposes.

Main purpose and intent

  • To relieve certain volunteer first responders from UI and temporary disability benefit obligations.
  • To ensure stipends paid to these volunteers are not counted as taxable income for gross income purposes.
  • The bill targets volunteers who serve in emergency response roles and receive stipends or clothing allowances.

Key provisions and changes

  • UI and disability exemption (Definitions and coverage changes):

    • Amends R.S.43:21-19 to add a new provision: amounts paid to a “volunteer first responder” who receives a stipend (including clothing allowances) would be exempt from unemployment compensation coverage.
    • Affected individuals would not owe UI taxes and would not be eligible to receive UI benefits for volunteer first responder services.
    • Such stipends also would be excluded from contributions to the State disability benefits fund and from eligibility for temporary disability and family temporary disability benefits tied to volunteer services.

  • Gross income exclusion:

    • Creates a new section stating that gross income shall not include stipends and clothing allowances received by a municipality for services performed by a volunteer first responder.
    • Defines “volunteer first responder” consistently with the UI exemption: a volunteer firefighter, volunteer member of a first aid/emergency/ambulance/rescue squad, or any other individual dispatched to an emergency to provide medical care or assistance.

  • Definitions:

    • Retains broad but specific definition of “volunteer first responder” to encompass various volunteer emergency personnel.

  • Effective date:

    • The act would take effect immediately, with section 2 applying to taxable years beginning after January 1 of the year following enactment.

Who would be affected

  • Volunteer first responders in New Jersey who receive stipends or clothing allowances (e.g., volunteer firefighters, members of first aid, emergency, ambulance, or rescue squads).
  • Municipal employers that provide stipends or clothing allowances to these volunteers.
  • The state unemployment insurance system and temporary disability funds would no longer treat such volunteer services as employment for UI/TD benefits purposes for the exempted individuals.

Procedural and timeline aspects

  • Introduced and referred to the Assembly Labor Committee on January 13, 2026.
  • Immediate effective date suggests there is no waiting period for the bill itself, but Section 2’s gross income exclusion applies to taxable years beginning after January 1 of the year following enactment.

Summary

A-2038 seeks to formalize a tax and unemployment-insurance-related exemption for stipended volunteer first responders. If enacted, eligible volunteers would not be covered by UI, would not qualify for UI or disability benefits for their volunteer work, and their stipends would not be counted as gross income for NJ state taxes. The bill reflects a policy choice to recognize and financially support volunteer emergency services while shifting the tax and UI treatment of such stipends.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.