The state legislature should move quickly to require all Credit Unions operating in the State of New Jersey to contribute to the state unemployment insurance fund.
Why is this important?
Credit unions are exempt from paying into the state unemployment insurance fund. This may have made sense in the past when credit unions were small financial cooperatives. However, Credit Unions have expanded their business model and now operate as quasi banks offering a full range of financial services from credit cards to retirement planning.
Employees of Credit Unions should therefore enjoy the same social safety net as those persons employed by for profit financial institutions.
