Delay of Paid Family Leave Unlikely But Employers Need Accurate Information

Dec 2008

(Livingston, NJ) With a package of bills intended to stimulate New Jersey’s economy headed for Governor Corzine’s signature, several legislators have proposed delaying implementation of the so-called paid family leave.

A family leave insurance law was enacted this spring. It provides employees with up to six weeks of wage insurance if they take time off to bond with a newborn or newly adopted child or care for a sick family member.  Benefits are funded through employee contributions, which are estimated to be approximately $26 per year.    The maximum benefit in 2009 will be $546 per week.

On November 17, Assemblyman Scott Rudder (R-8th District) and Assemblywoman Dawn Marie Addiego (R-8th District) introduced A-3466, which would delay enactment of the law for 24 months. On November 13, Assemblywoman Denise Coyle (R-16th District) introduced A-3421, which would delay implementation of the law for one year.

Business lobbyists have jumped on board.

While the bills’ proponents believe that providing family leave insurance would result in a burden for business, the law does not provide for time off or a guarantee of job reinstatement.  Employees who are not already covered by federal or state leave laws are not guaranteed their jobs even if they collect the insurance.

“There is a lot of misinformation out there about this [family leave insurance] law,” says John Sarno, president of the Employers Association of New Jersey (EANJ).  The employers group has submitted extensive comments to the NJ Department of Labor and Workforce Development on the law’s implementation.  Employee contributions begin on January 1, while employees can begin receiving family leave insurance benefits on July 1.

The family leave insurance law does not grant employees any time off.  Employers with 49 or less employees can voluntarily grant time off if they want. Other employers may be required to grant time off under family leave laws.

The law also allows for employers to require employees to use at least 2 weeks of vacation or sick leave before receiving family leave insurance.
 
“This idea that family leave insurance is a paid leave mandate is flat out wrong and is causing wide spread confusion among the employer community.  It’s a real disservice to misrepresent the law when there are enough problems for employers to worry about,” Sarno says. 

EANJ research shows that 3 out of 4 employers with 49 or less employees already grant an employee a leave of absence to care for a seriously ill family member, even though no law requires them to do so.

According to Sarno, most employers, regardless of size, understand that accommodating employee medical and family needs is good for business.  "An employer spends a lot of time and effort training employees.  It’s hard when skilled employees leave.  It’s best to make the effort to return the employee to work when possible," he states.

“This is not the time for scare tactics.  It’s the time to provide business with as accurate information as possible so that they can plan ahead and function through a very difficult economic climate,” says Sarno, who is a lawyer but not a lobbyist.

EANJ is conducting seminars statewide on family leave insurance and leave laws. For more information click here: http://www.eanj.org/calendar/.