The latest legal issue surrounding the paid leave bill should have Senators questioning how legally sound this legislation is, regardless of their position on the issue, NJBIA President Philip Kirschner said today.

Kirschner was reacting to a recent Office of Legislative Service opinion that the scheduled Monday vote on the bill would require an emergency waiver (which requires a three-fourths majority vote) in order to proceed without violating the New Jersey State Constitution. 

“This bill has been rammed through the legislative process at lightening speed only to raise more questions and concerns as the process goes on,” Kirschner said.  “Whether they support a paid leave mandate or not, Senators have every right to wonder if this bill is legally sound.  At the very least, the Senate should view this as an opportunity to take a break and give this legislation more thoughtful consideration.”

“This is not the first legal hitch surrounding the bill,” Kirschner noted.  “Earlier, proponents assured lawmakers that the bill protected small businesses by shielding from liability only to have the Attorney General write a legal opinion stating that was not the case.  The AG’s opinion was not available when the Senate last voted on the bill!”

“Now we learn that Monday’s planned vote would violate the State constitution,” Kirschner said.  “This should raise a red flag with legislators to slow this bill down.”

NJBIA opposes the paid leave bill, A-873 (Albano), because it would impose a one-size-fits-all mandate on all New Jersey businesses.  It would provide six week of paid leave to employees at every company (unlike existing unpaid leave laws, there is no exemption for businesses with fewer than 50 employees) and increase payroll taxes on every New Jersey worker.

Kirschner said delaying a final vote until the spring would give legislators the opportunity to consider the full impact of this bill.

“At a time when New Jersey is facing steep cuts in spending and the elimination of government programs, it is irresponsible to pass this costly new benefits program,” Kirschner said.  “As New Jersey faces what the beginning of a recession, it is reckless to impose this job-killing mandate on business, and a $100 million payroll tax increase on New Jersey’s working men and women.”

Kirschner pointed out that New Jersey lost 9,200 private-sector jobs in January and that many economists think the nation has entered into a recession.

“We should work to improve our economy to create jobs, not impose more obstacles to job growth.  We should pursue policies that support small businesses that are already struggling with high costs and a stagnant economy not put more job-killing mandates on them.”