A New Jersey appeals court has voided a state Department of Labor regulation that made unemployment benefits available to workers who accept buyouts or early retirement packages, finding that such benefits should be reserved for workers who lose their jobs involuntarily.

“We are satisfied [the regulation] is legally deficient as it contravenes the legislative policies of the Unemployment Compensation Act and is inconsistent with the Supreme Court’s interpretation” of the statute, Appellate Division Judge Francine Axelrad wrote in the case, In re Adoption of N.J.A.C. 12:17-9.6, A-4026-05.

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