Paid Family Leave Comes to New Jersey

Apr 2008

(Livingston, NJ)   On April 7th the NJ Legislature made history  when the State Senate passed the so-called Paid Family Leave, perhaps the most hotly contested piece of social legislation in a generation. Governor Corzine has promised to sign the bill into law when it reaches his desk.

The bill extends the Temporary Disability Insurance (TDI) to provide family leave benefits for six weeks to workers caring for ill family members, newborns and newly adopted children.

Although the bill is often referred to as a “leave law” it would not require employers to grant a leave of absence or to keep a job open with a right to guaranteed reinstatement. In that regard, it is merely an extension of the existing temporary disability income law, which grants 26 weeks of wage insurance to disabled employees. The law would apply to all employers now covered by the Unemployment law.

Much of the confusion about this law appears to be related to how TDI is perceived by many employers, particularly small employers.  Many believe that TDI grants 26 weeks of leave.  As a result, a type of social contract has emerged between small employers and employees who receive TDI benefits.  In short, employers typically do not terminate the employment of such individuals unless there is good cause to do so. This is not expected to change, although the law would permit a small employer to make a discharge decision.

According to John Sarno, president of the Employers Association of New Jersey, when viewed in connection with other laws and regulations, administration of the new wage insurance law may require a sophisticated approach by small employers. 

The Family Medical Leave Act and the NJ Family Leave Act permit eligible employees who work for employers with 50 or more employees to take up to 12 weeks off to care for themselves or a family member, and to care for newborns or newly adopted children.
 
The Americans with Disabilities Act (ADA) and the NJ Law Against Discrimination (LAD) require employers to provide reasonable accommodations to employees with disabilities, which may include granting time off for reasons relating to a disability.  
 
Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, prevents sex discrimination and gender stereotyping and may require, under certain circumstances, the granting of leaves because of pregnancy and related medical reasons, and for meeting care giving responsibilities. In addition, the ADA prohibits discrimination against employees who associate with people with disabilities, which could be disabled family members.

According to Sarno, the business lobby has labeled the bill a leave “mandate”, the kiss of death for employers. “But the reality is that without guaranteed job protection, an employee would have to decide whether to take time off and the employer would have to decide whether to accommodate his/her return, basically the same as it works now.  Therefore, we do not expect that law will significantly disrupt the existing practices and policies of employers.” he says.

So, “paid family leave” will require employers to learn how to administer something new.  It will require additional posting, notice, and reporting procedures. “Will it be a hassle?” asks Sarno. “Oh yes. Will there be a learning curve? You bet. Will it impose a new legal burden? Not really.”