New Jersey Family Leave Insurance
In March of 2008, New Jersey became the second state to implement paid family leave. The Family Leave Insurance (FLI) law, like its California counterpart, allows six weeks to care for a new child or a seriously ill relative, including domestic partners or civil union partners. It provides up to two-thirds of salary, with a cap of $524 a week, paid for through payroll deduction, which would amount to about $33 a year for the average worker (although the contribution rate was lowered by half in the beginning of 2011). As with the California law, job protection is not provided.
Cry Wolf Quotes
I would say that this is still bad legislation for business. It's the same legislative nightmare and the same issues that we argued at 12 weeks are there for six. It's still hard to get temporary workers part time, and it's still going to create a hardship for business.
Small businesses can and do fail because of this. There is a cost, both in dollars and in disruption. The cost in dollars is the cost of a temporary worker for which the company pays a premium, the training of a replacement worker and the overtime paid to remaining workers who help fill in for that absent employee.
It should occur at the national level and not at the state level. My concern about paid family leave in New Jersey is it will make us uncompetitive with other states such as Pennsylvania.
This is why NJBIA and its member companies have been fighting passage of a paid family leave mandate in the Legislature. Despite its good intentions, the mandate would greatly impair the ability of employers to operate their businesses and meet their customers' needs. NJBIA members have sent 50,000 messages to legislators and the governor opposing it. Yet, state policymakers seem to be oblivious. We are teetering on the edge of recession, we are losing jobs, and they want to impose a huge new mandate that has been adopted by only one other state, California...What New Jersey needs now, more than ever, is to have its government leadership focus fiercely on what can be done to strengthen the state's business climate and create new jobs. Businesses are tired of elected officials who say they support a growing economy and small business, only to take actions that contradict their words, like voting for paid family leave.
