Paid Family Leave Vote Postponed
Having passed the Assemby, the Senate postponed action on the so-called paid family leave. The bill would entitle employees up to six weeks of wage continuation to care for ill family members and newborns.
Opposition has been fierce, but in the end an obscure constitutional requirement requiring a super-majority vote on procedural issues caused the Senate to postpone a vote until it reconvenes later this year.
Opponents have argued that the bill would cost jobs, even though employees would pay for the benefit and there is no empirical evidence suggesting wage insurance would cause employers to restrict hiring. Nevertheless, the fear of red tape and absent employees has caused small business to mount a sustained attack. An economic down turn has caused even more anxiety.
Time appears to be on the side of those who seek to derail the bill. The economy appears to be in a recession and legislators do not want to be branded as insensitive to business.
On the other hand, some in the executive branch and their labor allies are anticipating a Democrat in the White House later this year and they would like nothing better than to get national recognition for paid family leave. Indeed, there is speculation that the NJ bill will be a model for national legislation.
As noted in an earlier post, paid family leave represents good social-economic policy; but right now, opponents have the better political club.
March 19th, 2008 at 3:28 pm
If passed, this act will increase everyone’s taxes. Why? Because it is similar to unemployment insurance but there is nobody to send the bill to if the account is overdrawn. Employees view unemployment as a right because they have paid into it. BUT if too many employees are laid off and collect unemployment the employer’s experience rate goes up and the employer then makes up the deficit.
If this is enacted, employees will feel entitled since money was deducted from their paycheck for the benefit. The only way to get that money back is to take advantage of the benefit. Trouble is, when too many people take advantage the meager sum collected will not be enough and since they cannot make up the deficit by charging the employer, tax payers will get the bill!