Paid Leave Will Hurt Businesses During Economic Downturn Read
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New Jersey should not impose a massive paid leave mandate on all businesses, especially when the economy is in danger of slipping into a recession, NJBIA recently told the Senate Budget Committee.
 
S-786 (Sweeney, Buono) would mandate that employees at all businesses be allowed to take six weeks of paid family leave.  Following its hearing, the committee released the bill 8-6, with Senators Anthony Bucco, Philip Haines, Leonard Lance, Steve Oroho, Kevin O’Toole and Shirley Turner voting against the bill.  The bill now heads to the full Senate for consideration.

“We are either in a recession or great economic slowdown,” NJBIA President Philip Kirschner told the committee.  “While Congress, in a bipartisan fashion, is working to help business weather this tough economic time, New Jersey is making it more difficult for employers by imposing a huge new mandate.  This legislation will damage employers, add to our State’s negative business climate, and continue to slow the creation of jobs in New Jersey.”

The bill would be especially tough on small businesses.  Unlike current unpaid leave laws, which exempt small businesses with two to 49 employees, this bill applies to every employer, no matter how small.  It is unrealistic to expect employers to operate without employees for 12 weeks (six weeks of existing Temporary Disability Insurance for childbirth plus an additional six weeks under the bill).  Businesses would be forced to pay for temporary workers, overtime and lost productivity.  Some jobs would not get done.  Finding temporary workers for many skilled positions would be impossible.

Despite assertions to the contrary, Kirschner said, businesses do not have the right to fire employees who take the leave for childbirth.  The State Law against Discrimination, the Federal Pregnancy Anti-Discrimination Act, and the Americans with Disabilities Act stand against this.  It is wrong to suggest that small businesses can terminate employees without inviting massive litigation and liability.

Finally, Kirschner said businesses already work with their employees to balance work and family, but they must have the flexibility to manage their particular workplaces.  A one-size-fits-all mandate does not take into account the differences between a small bakery or office, medium-sized manufacturer or large hospital.

Governor Jon Corzine’s long-awaited financial restructuring plan proposes a combination of toll hikes, a spending freeze and budget controls to fix New Jersey’s finances.  NJBIA believes the first priority should be to reduce State spending and sustain fiscal discipline.

Under the Governor’s plan, the State would borrow $38 billion against future toll revenues to cut New Jersey’s $32 billion debt in half and pay for 75 years worth of transportation improvement projects.  The plan also calls for a one-year freeze of State government spending at this year’s level and would prohibit future spending from exceeding recurring revenues.  Corzine said he would also seek a constitutional amendment to require voter approval of future borrowing that isn’t backed by an identifiable source of revenue.

Addressing both houses of the Legislature, Corzine said his plan represents a fundamental change in the way New Jersey handles its finances, one that will “end the era of financial imbalance and fiscal mismanagement once and for all.”

Corzine stressed that none of the roadways would be leased or sold to a private entity.  Instead, the State would create a nonprofit Public Benefits Corporation to sell $38 billion in bonds, which would then be repaid with toll collections.  The plan would greatly increase tolls along the Garden State Parkway, New Jersey Turnpike and Atlantic City Expressway.  Tolls would be hiked 50 percent every four years between 2010 and 2022, plus there would be annual increases tied to the Consumer Price Index (CPI).  The cumulative increase in tolls under this plan would be 800% over the next 14 years.

Any ideas on how to slice the State budget?
Governor Corzine wants to hear them.

Submit your ideas by visiting the Governor's Web site.

Legislation requiring small-business health plans to provide unlimited coverage for the treatment of virtually all behavioral problems and substance abuse has been released by the Senate Health Committee.

S-607 (Vitale, Buono) would increase health insurance premiums for businesses that have already seen their premiums more than double since 2000. 

The mandate would have a huge impact on small businesses as most companies with 2-50 employees must purchase their health plans in the State-regulated market.  Most large-company plans are regulated by federal law and would be exempt from this mandate.  NJBIA believes the Legislature should make health insurance more accessible by making it more affordable, instead of forcing businesses to buy expanded and more costly coverages.

If your business has State or local government contracts worth at least $50,000, you must comply with a law requiring disclosure of political contributions — or risk paying large fines and penalties.

The disclosure report for 2007 must be filed electronically by March 31, 2008, on the NJ Election Law Enforcement Commission’s Web site.  Failure to comply with the law could also put your company at risk of losing its government contracts.

The rules cover the contri- butions of business owners and all principals, partners, officers and directors, as well as their spouses.  Disclosures must be filed even if there are no campaign contributions to report. 

If Your Co. Gets Gov’t Assistance, a Tax Certificate Is Needed
Businesses receiving financial assistance or a monetary benefit from the State must now obtain a Tax Clearance Certificate under a new law that took effect Jan. 28. The NJ Division of Taxation will research applicants’ tax accounts to ensure they have paid all taxes due.  The certificates are required as part of the application for any State business assistance, incentives, grants, loans, or loan guarantees.  Contact Sherry Scheingold at 609-633-8450.

Send Us Your E-Mail Address
So we can better serve your needs, please send us your e-mail address.  It’s an easy ticket to valuable NJBIA benefits and information.  Members who have already provided us with their e-mail addresses, for example, were the first to take advantage of NJBIA’s new Basic Skills Workforce Training Program.  Through this program, your employees can get training in computers, communications, math, and English as a second language at no charge to your company.  Visit www.njbia.org/resources/train for more information.

In addition, members who subscribe to NJBIA e-mails are the first to know about changes in laws and regulations that directly impact their businesses, and are given the opportunity to quickly respond to legislators on business issues up for vote in Trenton.  To sign-up, visit www.njbia.org/email.  The information you provide will be kept confidential and will not be shared with outside groups.

Get Up to $175,000 in Working Capital
Want to lower your credit card processing costs and get working capital?  Through NJBIA’s partnership with Cornerstone Association Merchant Services (CAMS), you can lower your processing costs and integrate into one system the latest non-cash transaction programs such as PIN-based debit, check guarantee programs and signature capture.

You can also get up to $175,000 in working capital, free credit card processing equipment, and free gift and program-reward cards.  Give a CAMS representative a call.  Be sure to have copies of your most recent credit card statements to review.  Call 877-445-8195 to get a free customized quote.  Visit NJBIA's Member Resource Center for more information.

Protect Yourself from Rising Energy Costs
Member companies whose monthly electricity bills are at least $5,000 can lock in pricing and protect themselves against the volatility of an unpredictable energy market.

NJBIA and Constellation NewEnergy have put together the right contract to help your business manage its energy costs.  With a set rate for the term of the contract, the program offers a fixed price that provides long-term price stability and budget certainty, no change in distribution service from your utility, and access to retail choice credits, if applicable.

For more information, contact Stephanie Rios at 212-885-6439, or visit NJBIA's Member Resource Center.

Save 20-52% on Your Shipping Costs
NJBIA member companies can save 20 to 52 percent on their shipping costs by taking advantage of discount prices through the NJBIA Shipping Program.  You can lower your costs whether you are shipping overnight letters, single packages, truckloads or overseas.  Get discounted shipping services with DHL Express, USF Companies, New Penn, Roadway, Yellow Transportation, and UPS international and domestic air freight.

Visit NJBIA's Member Resource Center for more information.  You can also call 1-800-Members (1-800-636-2377) to receive personal assistance in deciding which shipping services are best suited to your company.

FRIDAY, MAY 2
Developing Employee Handbooks & Policies
Properly written employee handbooks and policies are an essential tool for managing a productive workforce, but only if they are prepared the right way.  At this seminar, top New Jersey employment attorneys will explain what your company needs to do to bring your employment policies and handbooks in line with State and federal laws.  The seminar will be held at the Sheraton at Woodbridge Place in Iselin (Route 1 South), starting with registration and continental breakfast at 8:30 a.m.  It will end at 12:30 p.m.  The cost to attend is $119 per person for NJBIA members, $149 for nonmembers.  Register online now, or for more information contact Stacy Wichner at 609-393-7707, ext. 213.  To become a sponsor, contact Sherry Esteves at ext. 219.

MEET THE DECISION MAKERS SERIES 2008
Hear directly from the cabinet officials and legislative leaders who make decisions on issues like taxes, spending, healthcare reform, energy policy and fiscal restructuring.  NJBIA will bring together top Administration officials, along with legislative leaders, for insightful briefings on some of the biggest issues facing your business.  Each breakfast will run from 7:45 a.m. to 10:00 a.m. at Forsgate Country Club in Monroe Township (NJ Turnpike Exit 8A).  The cost is $69 per person for NJBIA members and $105 for nonmembers.  For more information, contact Stacy Wichner at 609-393-7707, ext. 213.

Wednesday, March 26:  Transportation
Get the latest on the Governor’s fiscal restructuring plan and transportation funding from Transportation Commissioner Kris Kolluri, Assembly Transportation Committee Chairman John Wisniewski, The Port Authority of NY and NJ First Deputy Executive Director Susan Bass Levin, and members of the Senate Transportation Committee.

Wednesday, April 2:  Taxes and Spending
Get the inside story on the State budget from the new State Treasurer, David Rousseau, Senate Budget and Appropriations Committee Chair Barbara Buono, Assembly Budget Committee Chairman Louis Greenwald, Senate Republican Budget Officer Leonard Lance, and Assembly Republican Budget Officer Joe Malone.

Tuesday, April 15:  Meet the Legislature’s Majority and Minority Leaders
Like it or not, what happens in Trenton impacts your business.  Don’t wait until a new law is passed to make your voice heard.  Meet Senate Majority Leader Stephen Sweeney, Senate Republican Leader Tom Kean, Assembly Majority Leader Bonnie Watson Coleman, and Assembly Republican Leader Alex DeCroce. 

Tuesday, April 22:  Healthcare Reform
Find out how the State plans to reform New Jersey’s healthcare system from Heather Howard, the new Commissioner of the Department of Health and Senior Services, Senate Health Committee Chairman Joseph Vitale, Assembly Budget Committee Chairman Louis Greenwald, and other legislative leaders.

Friday, May 16:  Energy
Find out what the State plans to do about energy costs and the regulation of greenhouse gases from NJ Board of Public Utilities Commissioner Joseph Fiordaliso and members of the Senate and Assembly energy-related committees.

Friday, October 17:  Environmental Regulation
Meet NJ Department of Environmental Protection Commissioner Lisa Jackson and members of the Senate and Assembly Environment Committees, who will discuss State environmental policy and its impact on your business.

With Recession Looming, NJBIA Urges  Legislature to Hold Back New Mandates

With a possible recession on the horizon, businesses might expect the State Legislature to move slower in 2008 and not pass any new labor mandates.  After four straight years of meager private-sector employment growth, all signs point to a further slow-down in the State economy.  Yet, only a month into this legislative session, it was déjà vu all over again. 

The Senate Budget Committee passed a new paid leave mandate in an 8-6 vote.  Sponsored by Senators Stephen Sweeney and Barbara Buono, S-786 would grant six weeks of paid leave to all employees at every business.  Hundreds of thousands of small businesses that have never had to cope with unpaid leave mandates would face the prospect of having key workers out for six weeks or, for those on maternity leave, 12 weeks. 

But paid leave is just one bill that could negatively impact employers.  S-750 (Codey, Sweeney) and A-4624 (Egan) would prohibit nonunion employers that provide goods or services to governmental entities from using any public funds to oppose unionization efforts.  This ban would place an inordinate burden on employers that contract with governmental entities.  As a condition of receiving any public funding, these employers would have to ensure that all public funds are kept separate from the employer’s anti-unionization activities. 

Because many employers get much of their revenue from public contracts, they would effecively be forced to drop opposition to unionization of their workplaces.  The law would hit employers in the healthcare, transportation and education sectors particularly hard.

This legislation is designed to give unions an unfair advantage over employers and to deny employees a vibrant debate during an organizing drive as envisioned by the National Labor Relations Act (NLRA).   The bill  also raises serious constitutional questions as the NLRA may preempt states from enacting this sort of regulation.

Finally, NJBIA opposes a proposal that would make it a criminal offense to misclassify workers.  While we believe that intentional misclassification hurts reputable employers and employees, we also believe it sends the wrong message to all employers to criminalize matters traditionally handled as civil violations.

Furthermore, employee misclassification is not a clear-cut issue.  Employers currently must consider three factors to determine if a worker is an employee or a contractor.  Unfortunately, these factors often fall in a grey area for employers, and the NJ Department of Labor has refused to provide guidance.  Thus, employers who make honest mistakes because of vague State rules could face criminal charges.  The Legislature should clarify these rules instead of expanding criminal penalties.

It is early in the legislative session and there is plenty of opportunity to change course.  But right now it looks as if lawmakers are picking up right where they left off last session.

New Laws Regarding Worker Rights, Business Closings, Pay to Play, Contractor Payments Finalized in 2006-07

A flurry of laws was passed in the 2006-2007 session of the State Legislature that could have a significant impact on your business operations, particularly in the area of human resources and workforce management.  What follows is a summary of some of the most important laws that were passed.  Please contact John Rogers at ext. 209 if you have any questions.

Worker Freedom from Intimidation Act - P.L.2006, c.53 (S-1123/Coniglio):  The Worker Freedom from Employer Intimi-dation Act prohibits employers from requiring their employees to attend any meeting held to communicate the employer’s opinion about “religious or political matters.”  The law also prohibits employers from requiring employees to participate in any communications with them concerning the employer’s view of “religious or political matters.”   The law defines a “political matter” as “political party affiliation and decisions to join or not join or participate in any lawful political, social or community activity.” 

Pay-to-Play Disclosure – P.L. 2006, c. 271, N.J.A.C. 19:20-26.1 et. seq. & P.L. 2007, c.304 (S-3025/Lesniak):  Business entities that have government contracts are now required to disclose certain election campaign contributions both prior to the award of the contract and in an annual filing.  Specifically, a business must provide a State or local unit with a list of contributions attributed to the business at least ten days prior to the award of the contract.  The list must include the name of each political party committee, legislative leadership committee, continuing political committee, and candidate or joint candidate committee, as well as the date and amount of the contribution.  Additionally, the law requires a business that has received an aggregate of $50,000 or more in contracts in a calendar year with any public entity to file an annual report with ELEC, even if they have not made any contributions.  Nonprofit entities are exempted from the disclosure law.

Business Closings/Layoff Notices - P.L.2007, c.212 (A-1044/Van Drew):  The “Millville Dallas Airmotive Plant Job Loss Notification Act” requires certain employers with 100 or more employees to provide 60 days notice prior to terminating or transferring 50 or more employees in any 30-day period.  Covered employers must provide notice to the effected employees, unions, municipal officials and the NJ Department of Labor. 

Prompt Payment of Contractors - P.L.2006, c.96 (S-1726/Sweeney):  This law requires property owners to pay prime contractors within 30 days of the completion of certain construction work.  The law covers all improvements to structures and real property.  It also applies to the engagement of certain professionals in connection with construction work (e.g., engineers, surveyors, etc.).  The law applies to all contracts entered into on, or after, September 1, 2006.

Misclassification of Construction Employees -
P.L.2007, c.114 (A-4009/Caraballo):  This law disqualifies certain employers from public work and establishes criminal penalties for misclassification of construction workers as independent contractors. 

Expands Protections to Transgender Employees - P.L.2006, c.100 (S-362/Karcher):  This law includes “gender identity or expression” as a protected class under the “Law Against Discrimination.”  The law prohibits employment decisions such as hiring, termination or promotions on the basis of an employee’s or applicant’s gender identity. 

Expands Protections to Employees Based on Religion – P.L. 2007, c. 325 (A-3451/Schaer):  This law expands the New Jersey Law against Discrimination (LAD) by requiring employers to accommodate an employee’s religious beliefs.  The law requires an employer, except where it would cause undue hardship, to permit an employee to use leave from his place of employment for observance of any holy day.  Any absence from work is to be made up by an equivalent amount of time and work at another mutually convenient time or is to be charged against any leave with pay ordinarily granted.

HR Fast Facts
Get the Facts You Need to Help Your Company Steer Clear of Legal Liabilities in New Jersey

NJBIA’s Fast Facts publications provide timely updates on rules issued by State agencies, along with information that will help you stay in compliance.  The Fast Facts also provide useful information on topics like purchasing health insurance coverage.  Below is a listing of Fast Facts designed to help NJBIA members deal with human resource and workforce management issues. 

Business Terminations/Closings
Businesses with 100 or more employees must now comply with New Jersey and federal notice requirements prior to terminating or transferring 50 or more positions in any 30-day period.  This Fast Facts compares the federal and State laws and provides employers with guidance in managing complicated reductions in force.

Worker Freedom from Intimidation Act
The Worker Freedom From Intimidation Act was signed into law on July 26, 2006.  This law prohibits an employer from requiring its employees to attend or participate in any communications with the employer concerning the employer’s view of “religious or political matters.”

Buying Health Insurance for Your Business
This Fast Facts provides information useful in evaluating and comparing health insurance plans.  It makes the process easier by highlighting the different health plan options available to employers and discussing what features to look for when buying health insurance.

New Jersey Small Employer Health Benefits Program
The Small Employer Health Benefits Program guarantees all New Jersey small employers (2-50 employees) access to healthcare coverage.  This Fast Facts briefly explains your basic rights and responsibilities as a provider of health benefits. 

Basics of HSAs
Health Savings Accounts (HSAs) are special savings accounts that enable qualified participants to pay for current health expenses or save for medical and retiree health expenses on a tax-free basis.  HSAs were created as part of the 2003 Medicare reform legislation.  This Fast Facts explains the value of HSAs as an employee healthcare coverage option.

Researching Quality Healthcare
Healthcare costs and quality can vary from hospital to hospital, physician to physician and area to area.  And, consumer-friendly comparative information has been hard to find.  This Fast Facts is intended to guide members to reliable sources of information on New Jersey’s health insurance plans and providers.

Basics of External Appeals
in Managed Care
Employers should be aware that when a health insurance plan regulated by the State denies coverage for medical services prescribed by a medical practitioner as not being medically necessary, the insured has the right to an external appeal.  Employers are not involved in the process, but it is helpful to be aware that the process exists.

Pay-to-Play Disclosure
The 2005 “pay-to-play disclosure law” requires all companies with State or local government contracts of $50,000 or more to file an annual online disclosure with the NJ Election Law Enforcement Commission (ELEC).  This particularly impacts law firms, engineering firms, consulting firms, plumbing supply stores, and equipment sellers.  The 2007 disclosure reports must be filed by March 31, 2008.

Request Your Fast Facts Online
Or contact Karen Ulisse at 609-393-7707, ext. 216

On the economic front, New Jersey ended 2007 with neither a whimper nor a bang.

With an assist from the month of December, which saw the addition of 3,500 private-sector jobs, the best showing since July, New Jersey ended 2007 with a modest gain for the year of 23,600 private-sector jobs, an increase of 1 percent.

The gain, based on preliminary State Labor Department data, which will be revised shortly, closely matched the average of 23,300 private-sector jobs New Jersey has added in each year since 2003. 

In December, the State’s unemployment rate moved up to 4.5 percent from 4.2 percent the month before.  This still left it below the national rate of 5 percent. 

Business and professional services (+13,000) and education and health services (+12,500) were New Jersey’s job-growth leaders in 2007.  Among the industry sectors losing jobs were manufacturing (-4,800), construction (-1,400), and financial services (-1,700).

While private-sector employment ended the year on a moderate up note in New Jersey, economists say there is little chance that the Garden State will escape the wrath of a national recession, which may already be underway.

In recent months, activity in the manufacturing and service sectors has fallen sharply, retail sales and job growth have faltered, and the unemployment rate has risen.  The housing market remains in the dumps, and the credit squeeze has spread to other areas of the economy.

Regional economic data offers evidence that the mid-Atlantic region might already be fighting strong recessionary headwinds.

On January 17, for example, the Federal Reserve Bank of Philadelphia reported that its mid-Atlantic manufacturing index had fallen sharply to the lowest level since the 2001 recession.

“New orders disappeared, order books thinned, employment dropped and hours worked declined precipitously.  In other words, this was a rout,” said Commerce Bank Chief Economist Joel Naroff, commenting on the bank’s report.  “Looking forward, pessimism seems to reign as the (business) expectations index hit its lowest point since 2001.”

Despite the addition of 3,500 jobs in December, New Jersey’s current employment expansion has been unusually weak.

Since the start of the current expansion in March 2003, New Jersey has added an average of about 23,300 new private-sector jobs on an annualized basis.  This is well below the annual average of 70,000 private-sector jobs added in the expansions of the 1980s and 1990s.  It is also well below the national employment-growth rate.

Another concern is the State’s uneven employment growth, with some sectors of the economy faring well and others poorly over the last seven years.  The bulk of the State’s job growth since December 2000 has occurred in the lower paying education/health and leisure/hospitality sectors, while most of the losses have come in information services (including telecommunications), manufacturing, and transportation/warehousing.

Source: NJ Department of Labor, seasonally adjusted, 2006 benchmark