On April 7, 2008 New Jersey passed a Paid Family Leave Act which becomes effective July 1, 2009. The policy is being financed by the workers themselves by the implementation of an additional tax of .09 percent starting January 1, 2009. Please note although contributions start January 1, 2009 benefits do not start until July 1, 2009.
The tax of .09 percent means that a worker making $500.00 a week would pay $500.00 X .0009 = $.45 per week or $23.40 for the year. This is deducted from the workers salary as of January 1, 2009 and the employer must collect it by law.
Paid family leave provides employees with up to six weeks of partial wage replacement to care for newborn, adopted or seriously ill family members every year. The program is similar to the State’s existing Temporary Disability Insurance (TDI) program. The paid leave benefit provides two-thirds of the employee’s wages capped at $524 per week for 2008. The maximum benefit rate is adjusted every year. The paid family leave program does not require any employer to hold the employee’s position open, but employers should be mindful of other State and federal laws that may provide employees with the right to reinstatement ( i.e.: FMLA). Eligible employees will also be able to take the leave on an intermittent basis.
All full and part time employees are eligible for paid family leave based on the amount of wages paid over a period of “base weeks.” Specifically, an employee that earns either: (1) $143 or more per week for 20 consecutive weeks, or (2) $7,200 or more over the previous 52 calendar weeks qualifies for the program.
Businesses that have 50 or more employees are required to continue to comply with the unpaid leave provisions of the federal Family and Medical Leave Act and the New Jersey Family Leave Act. These laws require employees to work for the employer for a period of time before they become eligible for the unpaid leave. However, the paid family leave law will allow an eligible employee to take paid family leave almost immediately.
Many questions pertaining to paid family leave still need to be answered. The Department of Labor & Workforce Development is charged with administering the program and will promulgate regulations over the next few months. For more information please visit http://lwd.dol.state.nj.us/
If anyone has any questions, please contact the Union office.