On May 2, 2008, Governor Corzine signed into law the New Jersey Paid Family Leave Law.  Generally speaking, under the new law, commencing on July 1, 2009, eligible employees are entitled to up to six weeks of paid time off to care for a newborn or newly adopted child, or to care for a family member with a serious health condition.  The law applies to all employers subject to unemployment compensation law, regardless of the number of employees they employ (unlike the federal Family and Medical Leave Act and the New Jersey Family Leave Act, which apply only to employers with 50 or more employees).

Eligibility and Benefits.

Under the new law, employees who have worked at least 20 weeks, or who have earned $7,150 or more during their term of employment, are entitled to the paid leave benefits. Eligible employees may collect up to two-thirds of their weekly salary during the leave period (currently capped at $524 per week).

An eligible absence is one that (i) occurs within 12 months after the birth or adoption of a child, or (ii) is related to providing care to a family member experiencing a serious health condition.  “Family members” include the employee’s child, spouse, domestic partner, civil union partner or parent.  “Serious health condition” is defined as an illness, injury, impairment or physical or mental condition requiring inpatient or continuing medical treatment by a health-care provider. Leave that is necessitated by a family member’s serious health condition must be supported by a health-care provider’s certification.

How Leave May Be Taken.

Leave can be taken in one six-week period per year, or in the case of a serious health condition, by taking 42 intermittent days per year.  Employers may require employees to use at least two weeks sick and vacation time before taking paid leave.

How the Benefits Are Funded.

Commencing on January 1, 2009, benefits under the law will be funded through a new employee payroll tax, estimated at $33 per year per employee.  Employers will not be required to fund paid leave benefits, but will likely incur significant administrative costs.

No Claim Due To Job Loss Against Employer of Fewer Than 50 Employees.

Unlike the current New Jersey Family Leave Act, for employers with fewer than 50 employees the new paid-leave law does not entitle employees to any job protections; employees who take paid leave and lose their jobs do not have a claim against the employer due to the job loss.

This law will significantly impact all employers regardless of number of employees.  If you have questions as to how this impacts you please call us.