New JerseyWarranty Reimbursement.

New Jersey warranty reimbursement requirements

Scope: Effective April 1, 2026, for agreements in effect on or after that date; not retroactive to earlier causes of action.

Parts and labor eligibility

• Labor reimbursement: Prevailing retail rate, including diagnostics.
• Parts reimbursement: Prevailing retail markup.
• Labor-time provision: Separate allowance for reimbursable hours, distinct from the hourly rate.
• Coverage: Qualifying franchisor-paid warranty, extended-warranty, maintenance-plan, service-plan and recall work.
• Special parts: RV parts and certain supplied propulsion batteries and engine/transmission assemblies have separate rules under (d)–(e).

State requirements

• Maximum RO age: 180 days before submission.
• Qualifying RO sample: 100 sequential qualifying customer-paid ROs.
• Alternative sample period: 90 consecutive days of qualifying ROs.
• Sample selection rule: Whichever produces fewer ROs.
• Rate effective date: 30 days after declaration; adjustments limited to an audit of the submitted sample only.
• Request frequency: Parts markup, hourly rate or labor-time allowance: twice per calendar year maximum.

Statutory exclusions

Subsection (j) specifies the exclusions applicable to each rate.

• Manufacturer/distributor promotions and discounted campaigns.
• Wholesale work.
• Vehicle reconditioning.
• Accessory installations.
• Items without individual part numbers.
• Routine maintenance, including brakes, bulbs, fluids, filters, batteries and belts, unless in the course of or related to a repair.
• Tire work, alignments and rotations.
• Body repairs for collision, road-hazard, weather, vandalism, theft or other specified damage.
• Insurance work.
• Required emission inspections.
• Manufacturer-approved goodwill or policy repairs.
• Government-agency repairs, including repairs through its service-contract agent.
• Dealer- or employee-owned vehicles.
• Repairs with aftermarket parts: parts-rate calculation only, not labor.
• Repairs on aftermarket parts.

Official sources

• New Jersey P.L.2025,c.140