Business Groups Sue To Block New Jersey Law Penalizing Employers Whose Workers Receive Medicaid

Four national business associations have sued New Jersey to block a law requiring employers to pay annual fees when 50 or more of their employees receive Medicaid benefits. Under Assembly Bill (AB) 5324, employers could be charged between $325 and $725 for each employee or employee's dependent receiving Medicaid, depending on how many workers are enrolled in the program. The law took effect July 1, 2026, and the business groups are asking a court to prevent the state from enforcing it.

The law was signed by Governor Sherrill as part of New Jersey's fiscal year 2027 Appropriations Act . . .