NEW JERSEY CAMPAIGN FINANCE LAW

Avoid Inadvertent Violations Resulting from Employee Actions

As elections are approaching, employers might want to

review their policies concerning employee contributions to

candidates and political committees. An employer who doesn’t

have such a policy might want to adopt one. In either case, the

policy should be fully implemented and communicated to

employees.

 

The New Jersey Campaign Contributions and

Expenditures Reporting Act and the regulations promulgated

pursuant to that Act are designed to protect the public interest by

preventing corruption in elections. They seek to avoid even the

appearance of corruption in order to preserve the public’s faith in

the state’s democratic processes.

 

The law provides for limits on the amounts that an

individual or corporation can contribute to political campaigns for

non­-gubernatorial candidates and committees: $2600 per

election to a candidate committee; $7200 per election to a

political committee; $7200 per year to a continuing political

committee; $25,000 per year to a legislative leadership

committee; $25,000 per year to a state political party committee;

$37,000 per year to a county political party committee; and

$7200 per year to a municipal political party committee. The

amount which may be given to a gubernatorial candidate varies

according the to a consumer price index established by the New

Jersey Election Law Enforcement Commission.

 

Please note that these amounts are for non­public

contractors ­ entities which hold or seek public contracts are

subject to special restrictions. These restrictions are beyond the

scope of this piece and will be the subject of a future article.

 

As citizens, employees are free to make whatever political

contributions they like in accordance with the law. As a general

rule, employers need not, and should not, concern themselves

with the amounts given or the identity of the recipients.

However, employee contributions may cause an inadvertent

violation of the laws by employers in two ways.

 

First, employers should be sure not to reimburse

employees for political contributions, either as donations or

business expenses. Such reimbursements are considered

contributions by the employer and could put the company over

the limit. Additionally, contributions in­-kind count towards the

limits. If an employee uses the employer’s resources to work for

a candidate (such as preparing, copying and sending a

fundraising mailing or letter of support for a candidate), the value

of those resources is considered a contribution by the employer.

Similarly, employers cannot pay employees any kind of

supplement or bonus with the understanding that all or part of it

is for political contributions.

 

Companies that violate the restrictions, even

inadvertently, are subject to substantial financial penalties.

 

To avoid these problems, management should implement

a political activity compliance policy. Employees must

understand that they cannot make contributions on behalf of the

company, cannot use company resources for political activity

and cannot seek or approve reimbursement for political

contribution expenses. At the same time, when implementing

the policy, employers should clarify that employees have the

right to make their own contributions to whatever candidate or

committee they choose, without involving or informing the

employer.

 
DISCLAIMER ­ This article is for general information only and is

not intended to provide legal advice or to address specific legal

problems. This article does not create an attorney­client

relationship. For legal advice concerning political contributions

and all other legal matters, consult an attorney.

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