Center for Non-Profits - Lobby/Ethics Reform Update

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Paid Family Leave Legislation Signed Into Law

(updated 5/4/08)

Legislation to provide for paid family leave was signed into law by Governor Corzine on May 2, 2008. A-873 (Albano/Oliver)/S-786 (Sweeney/Buono) will extend Temporary Disability Insurance (TDI) regulations to allow employees to take up to 6 weeks of time off to care for sick family members, newborn babies or newly adopted children. The new law takes effect January 2009, with the first paid leaves possible the following July.

Previous New Jersey family leave laws applied only to employers of 50 or more employees, while the new law applies to all employers. Employers may require employees to use other paid sick leave or other paid leave prior to accessing family leave benefits. Employers of 50 or more employees are required to reinstate employees following leave, as they were under the previous family leave laws. Under the new law, employers with fewer than 50 employees will not be required to hold a job open or guarantee reinstatement.

The law will be funded through an increase in employee payroll deductions of between 34 and 64 cents per employee per week. Employees would be required to obtain medical verification of the family member's condition for which leave is requested. While on leave, workers would be paid up to 2/3 of their regular salary, to a maximum of $524/week in 2008 (the amount would adjust annually based on cost of living). The maximum allowable leave time will be 6 weeks (reduced from 12 weeks, and then 10 weeks, in the family leave bills considered in the last legislative session), and employers may permit or require an employee to use paid sick leave or other paid leave time before using benefits provided under the bill.

More information regarding the new family leave law will be forthcoming.

This document is for informational purposes only and does not constitute legal advice or a legal opinion. For answers to specific questions concerning your situation, you should consult a knowledgeable attorney who can advise you regarding your particular circumstances.

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