NJ Unemployment – Employees of a Religious Organization Are Not Entitled to Overtime

By Thomas McKinney

The Federal and New Jersey State tax law exempt churches and religious organizations from paying unemployment taxes.  In 1935 the Federal Government enacted the Federal Unemployment Act of 1935 and in 1970 it was amended to exempt “service performed in the employ of a church … or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church.”  New Jersey also has the same exemption.

This means that if you are employed by a church, a teacher at a religious school or work for company that is operated by a religious organization, you will not be entitled to unemployment compensation if you are terminated.  However, some religious organizations have created there own policies regarding unemployment, but they are typically much less and shorter in duration than unemployment from the government.

July 22, 2011 – Tom McKinney – Castronovo & McKinney, LLC

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.