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New Jersey’s paid family leave law has been changed to provide more generous benefits and expanded paid leaves, and to require more small businesses to guarantee job protection for workers on leave.

Under the legislation (A-3975) signed today by Gov. Phil Murphy, employers with 30 or more employees will have to comply with the law’s job protection requirement (the previous threshold was 50 employees). The new law also doubles the amount of paid leave time employees can take from six to 12 weeks, and increases the maximum weekly benefit from $650 a week to $860.

“This comprehensive paid family leave program, coupled with the newly passed earned sick leave and minimum wage increase, are fundamental elements in building a stronger and fairer New Jersey for all working families,” Murphy said.

NJBIA President & CEO Michele Siekerka said doubling the length of paid family leave, and expanding the job protection requirement to include smaller employers, means more businesses face the added cost of paying overtime or hiring replacement workers to cover for absent employees.

“Considering that New Jersey is one of only four states that have paid family leave to begin with, it will put our small businesses at an even greater competitive disadvantage,” Siekerka said.

“Once again, small businesses in New Jersey have been hit with another costly mandate seemingly without any thought or concern about the cumulative impacts of other mandates already placed on their backs, such as expanded paid sick leave, a $15 minimum wage, and the highest business taxes in the nation,” Siekerka said.

The mandatory paid sick leave law that took effect in October 2018 impacts all employers. Small businesses are already scrambling to comply with that new law and will soon have to figure out how to pay the $15 an hour minimum wage, which will be phased in beginning July 1 when the $8.85 minimum wage jumps to $10 an hour on the path to $15 by Jan. 1, 2024.

Siekerka said the challenges that businesses face under the expanded paid family leave law could have been worse had it not been for NJBIA’s efforts to mitigate some of the most onerous provisions during the legislative committee process.

For example, the bill originally sought to double the amount of intermittent family leave time allowed from 42 days to 84 days. Eventually, that provision was amended to 56 days, instead of 84.

In its original form, the bill also would have increased weekly benefits from two-thirds of a worker’s average weekly wage to 90 percent of their pay with maximum benefits capped at 100 percent of the average weekly wage for all workers in New Jersey.  As amended, the new law provides benefits at 85 percent of a worker’s average weekly wage, not 90 percent, and caps maximum benefits at 70 percent of the average New Jersey weekly wage, rather than 100 percent.

15 responses to “Murphy Signs New Paid Family Leave Law that Will Be Costly to Business”

  1. We are a private medical office (primary care). What’s even compounding NJ’s new laws is that Health Insurance companies haven’t paid us more for services in the past 3-5 years and have making us sign up to the same reimbursement rates for the next 3 years…So we don’t even have a chance to grow revenue. Health Insurance and Government taxes are going to cripple our country.

  2. J. Courboin says:

    All the talk about fairness today is a scam on the American people.
    The state of NJ seems to do all it can to get business out of NJ.
    This is sad and I believe it will have a negative effect on all residents of this state.

  3. Dan Holler says:

    I think we’re finally finished.

  4. Scot MacNeill says:

    Does this idiot of a Governor realize what will happen to tax rates when all the people and businesses paying the majority of the taxes leave the state?

  5. Stephen Blejwas says:

    I blame the voters in NJ for this insanity. The have filled our government with progressive liberals who just don’t understand or care. More to come I am sure.

  6. Donald Ferguson says:

    Will someone from NJBIA please jump in here and tell us why we should stay as members. You are just a publication of lobbying failures. You appear totally uninfluential.

    • NJBIA says:

      Donald,

      Thanks for your feedback and for being a long-time member.

      When faced with the political realities of a progressive agenda and a majority party to accomplish it, NJBIA has been steadfast in ensuring that new mandates and costs of doing business are mitigated to the best extent possible. Our efforts have made a difference in the outcome, rest assured, but we are cognizant of the frustration and concerns of our member companies.

      For Paid Family Leave, as noted in the story, the bill originally sought to double the amount of intermittent family leave time allowed from 42 days to 84 days. We helped get that provision amended to 56 days.

      We worked on amendments that the new law provide benefits at 85 percent of a worker’s average weekly wage, not 90 percent sought in the original bill. And it caps maximum benefits at 70 percent of the average New Jersey weekly wage, rather than 100 percent in the original bill.

      For the Minimum Wage law, we were able to help acquire a slow phase-in, which was opposed by supporters of the bill. And we’re continuing to work on corrective legislation.

      In order to show the real impact of policies such as these we are asking our members to share what actions they’re taking to combat these policies; in particular how the minimum wage is impacting you. We will be sharing this information without attribution with the Legislature. We would love to hear from you. Please send your comments to minimumwage@NJBIA.org

    • Jerry Butler says:

      If health insurance isn’t converted to universal free market access where all consumers regardless of occupation including all union and government employees own their policies and control their healthcare expenses and decisions NJ is doomed. The destruction of NJ will accelerate and Trenton will be going out of their minds pretty soon when tax revenue fall way short of projections. People and businesses are just plain fed up with all of the waste, fraud and abuse and many are leaving.

    • Jim says:

      I have talked to them in the past few months. They are working hard for businesses, but all democrats are taking advantage of their control of all three branches.

      Come November every Democrat needs to be voted out

  7. Bill Billand says:

    This Governor is a hurricane of disaster.
    – Paid sick leave, even for part time employees, + the administration of tracking the same.
    – Eventual $15 minimum wage
    – Rain Tax (Lets see where that money goes) So good at justifying & collecting but even better at disguising it’s disposition.
    – Extended family leave (12 Weeks @ max $860) = $10,320 PLUS their temporary replacement while we hold their job.
    – I’ve even heard word of a mandatory severance package for employers who are forced to perform mass layoffs. ( I guess that’s designed as a humanitarian effort to end the suffering and strike the final blow when a CEO is trying to save a troubled business ) ONLY THE STRONG SURVIVE IN NJ.

    I was at McDonnalds a few weeks ago, I noticed ONE girl at the counter. Just 1.
    As I approached the counter I also noticed a series of touch-screen kiosks where I could order and pay for my meal – then simply wait for to arrive at the counter.
    I’m in the I.T. Business and have seen Kiosks range from $800 to $2,400 – Considering a $15.00 hourly wage (Not to mention taxes and benefits) the ROI on a $2,400 Kiosk is 4 weeks. ($2,400 / $15 Hr. = 160 Hours (Four 40 hour weeks)
    Why would a business owner NOT go that route. I would.

  8. K.N says:

    Let’s add to the wildly abused family leave . it would have been nice if our legislators would have sat down with business leaders to discuss the shortcomings of the existing legislation. In true New Jersey fashion they just add another layer of mud. When are people going to wake up.

  9. Jim says:

    These liberals need to be voted out of office. Once the minimum wage employees start seeing their jobs go away due to machines and or businesses leaving they will understand.
    Whenever I go to stores like Wawa, McDonalds etc. I now ask the person at the counter their plans for employment as the minimum wage goes up. Explain business to them and the lower cost of a touch screen. They will start to get it. Spread the word, only way to get these idiots out of office.

  10. David Damiano says:

    Can someone tell Mr Murphy there is a South Jersey and the
    economics are not the same as North Jersey. We need to separate the two. This state is a train wreck waiting to happen.
    We are doomed. Ugh!!

  11. Deb Rickman says:

    The article I am reading says that workers fund this through higher payroll deductions which currently average 33 dollars annually will go to 100 dollars. How does that math add up to the maximum weekly payment of 860 from 650 for 56 days? In fact you may leave employers holding your job for up to 56 days . If you are not needed at your job for 56 days , chances are the job is not that important. Where is the compasmny choice too keep positions? Starting to sound communist to me.

  12. Bruce says:

    Wake up NJ as 0% of $15.00 is $0, small employers will have to raise prices to offset increased government expenses and if they are to stay in business all things wii become more expensive offsetting any forced increase in minimum wage. Most likely employers will use technology to eliminate jobs, close the business or leave the state. Keep voting for this nonsense and we will be left with no cents.

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