NJ Business & Industry President Philip Kirschner today issued the following statement on the signing of A-873, the paid leave mandate:

“We are astonished that the Governor and the Legislature would impose a paid leave mandate on businesses that are already struggling to survive a recession.

“This bill could not come at a worse time.  Private-sector job growth came to a near standstill in 2007, and the State has since lost 10,500 private-sector jobs in the first quarter of 2008.  A recent Rutgers report showed New Jersey is way behind New York and Pennsylvania in creating private-sector jobs.

“New Jersey becomes only the second state in the nation with such a paid leave mandate.  The law is likely to extract a steep economic price down the road in the form of lost jobs and a further deterioration of New Jersey’s already poor business climate.

 “We are very concerned about the impact paid leave will have on employers, jobs and the economy.  NJBIA member companies sent more than 50,000 messages to the Governor and the Legislature urging them not to pass this law.  Rarely have we seen a more unpopular law. We believe paid leave will undermine the State’s ability to retain and attract private-sector jobs.”

“This measure will grant six weeks of paid time off for all employees at all businesses to care for a family member or newborn.  Unlike the existing unpaid leave laws, the bill does not exempt businesses with two to 49 employees. Small businesses that have never had to deal with unpaid leave laws suddenly will find themselves without key employees for long periods of time.

“This mandate will force businesses to pay for temporary workers, overtime, or lost productivity in their workplaces.  Many jobs simply won’t get done.  It will be difficult for companies to find skilled temporary workers to fill positions, if they can find them at all.  This will damage businesses’ relationship with their customers, and it will put them at a disadvantage with competitors in neighboring states that don’t have this mandate.

“Employers already work with their employees to balance work and family needs, but they need the flexibility to operate their workplace to meet their specific needs.  A one-size-fits-all mandate doesn’t take into account the differences in the needs of the small retailer or office, a medium-sized manufacturer or a large hospital.  These employers use sick days, vacation, other time off, flexible scheduling and many other methods to accommodate employees’ needs.