Scarinci Hollenbeck, LLC
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201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 28, 2018
The Firm
201-896-4100 info@sh-law.comWith New Jersey employers preparing to comply with the state’s new paid sick leave law, additional leave obligations may be on the horizon. The Senate Budget and Appropriations Committee recently advanced Senate Bill 2528, which would expand New Jersey’s paid family leave laws.
New Jersey is one of a handful of states to require employers to provide paid family leave. The Family Leave Act allows workers to take up to six weeks of paid leave during any 12-month period in the form of state temporary disability insurance benefits. Employees on paid leave receive two-thirds of their salary, to a maximum of $638 per week. The benefit is funded via a mandatory employee payroll tax and not by the employer directly.
Senate Bill 2528 revises New Jersey’s laws concerning family leave, pregnancy temporary disability insurance (TDI) leave, family TDI leave, and domestic or sexual violence safety leave. Most notably, the legislation seeks to lengthen the time family leave insurance (FLI) can be paid from six weeks to 12.
As initially proposed, the bill sought to increase the amount of weekly benefits for FLI leave and TDI pregnancy leave from two-thirds of a claimant’s average weekly wage to 90 percent of that wage. It also increased the cap from 53 percent of the State average weekly wage (SAWW) for all workers to 100 percent of the SAWW. The Senate Budget and Appropriations Committee amended the bill to reduce the benefit increase from 90 percent to 85 percent of the worker’s weekly wage. It also reduces the increased cap on benefits from 100 percent of the statewide average weekly wage to 70 percent.
The bill, as advanced by the Senate Committee, would also make several other key changes to employers’ paid leave obligations, including:
Critics of the bill contend that it places too high a burden on small and medium-sized businesses, particularly in light of the cumulative effect created by the state’s new paid sick leave law and new reporting requirements under a new pay equity law. Scarinci Hollenbeck’s Labor & Employment Group will continue to track the progress of the legislation and post updates as they become available.
If you have any questions or if you would like to discuss the matter further, please contact me, Scott Heck, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
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