Legislators gave final approval to a bill mandating that companies provide paid sick leave, but not before making substantial amendments that will ease the burden on businesses. Among other things, the revised bill permits existing paid-time-off plans to satisfy the measure’s requirements and overrides a dozen or so local existing ordinances so businesses have to follow only one uniform set of rules.
Lawmakers also give final approval to a ban on off-shore drilling, the SALT deduction work-around, and reforms to the way out-of-network healthcare bills are paid.
Paid Sick Leave, A-1827, (Lampitt, D-6; Mukherji, D-33)/ S-2171 (Weinberg, D-37)
Passed Senate April 12, 2018, sent to governor.
NJBIA position: neutral
NJBIA pulled its long-standing opposition to a statewide paid sick leave mandate after lawmakers agreed to several amendments. With the election of Gov. Phil Murphy, a paid sick leave mandate was all but certain, but with these changes, businesses will fare better than they would have under the original bill. Among the changes:
- State law will pre-empt all local ordinances adopted over the last couple of years so businesses have to abide by only one uniform set of rules.
- Existing paid time off plans could satisfy requirements in the bill; businesses that provide paid sick time before the law is enacted may not have to change their programs.
- The mandate is reduced to 40 hours of paid sick leave a year from 72 hours.
- Employers could prohibit employees from using foreseeable earned sick leave on certain dates and require reasonable documentation if unforeseen sick leave is used during those dates.
- Language requiring employers to pay all out-of-pocket expenses for an employee to obtain reasonable documentation was removed.
- Per diem healthcare workers are exempt.
- Employees would not be eligible to use paid sick leave until 120 calendar days after the employee starts. Employers have the option to start eligibility earlier.
- Effective date of law is 180 days following enactment.
Property Tax Deduction, S-1893 (Sarlo, D-36; Sweeney, D-3; McKeon, D-27; Jasey, D-27))
Passed by Assembly April 12, 2018, sent to Governor.
This legislation would allow for the collection of money that would otherwise be paid as property taxes, into charitable contributions so New Jerseyans can deduct them from their taxable federal income.
Under the federal tax reform law passed at the end of 2017, taxpayers are allowed to deduct only $10,000 in state and local taxes from their federal taxable income. This will hurt many New Jerseyans who pay more than that in property taxes alone. Under this legislation, local governments could establish one or more charitable funds, each for a specific public purpose, and permit property tax credits in association with certain donations.
Charitable contributions remain fully deductible under federal law. If taxpayers can lower their property taxes by turning some of them into donations to their local government, they would be able to reduce their taxable income even with the new tax cap.
Nuclear Power Subsidies, A-3724 (McKeon, D-27; Burzichelli, D-3)/S-2313 (Sweeney, D-3; Smith, D-17)
Passed both houses April 12, sent to governor.
NJBIA position: seeking amendments
The bill would create a process for zero emission credits that would subsidize nuclear power plants in New Jersey, paid for by a tariff of $.004 per kilowatt hour on electric bills. NJBIA has long supported nuclear power and understands that it is an important part of the state’s fuel diversity, but this must be balanced with the need for business to remain competitive.
As it is, New Jersey has the highest electric rates in the PJM power grid and the 10th highest in the country. Currently, 24 percent of the electric bill is from government-imposed taxes and fees. This particularly impacts the business community because commercial and industrial ratepayers consume 64 percent of the electricity generated.
In its current form, the bill does not provide an analysis of the ultimate economic impact to the ratepayer and it does not take into account PJM actions or the early retirement of the Oyster Creek nuclear plant. The bill needs amendments that would ensure the proper balance is struck between meeting the needs of the industry while maintaining regional competitiveness.
Out-of-network Consumer Protection, Transparency, Cost Containment and Accountability Act, S-485 (Vitale, D-19; Weinberg, D-37)/A-2039 (Coughlin, D-19; Schaer, D-36)
Passed both houses April 12, 2018, sent to governor.
NJBIA position: support
The measure would s protect consumers from unexpected, non-negotiable bills that drive health insurance premiums higher.
It would ensure consumers receive advance notice if a provider is out-of-network, including disclosures by providers and facilities about network status, potential financial responsibility, description of the services and an estimate of the cost.
The bill also would limit what consumers would have to pay out-of-network providers in some cases and create an arbitration system to resolve healthcare billing disputes when the insurance carrier and provider cannot come to a negotiated agreement.
Urban Enterprise Zone Designations, S-846 (Turner, D15; Cruz-Perez, D5; Pintor Marin, D-29; Mukherji, D-33; Gusciora, D-15)
Passed both houses April 12, 2018, sent to governor.
NJBIA position: support
Under the bill, the former UEZs in Bridgeton, Camden, Newark, Plainfield and Trenton would be reinstated, and the remaining UEZs scheduled to expire prior to December 31, 2023 would be extended through the end of 2023. The bill would also require the Department of Community Affairs (DCA) to conduct a comprehensive analysis of the program and to issue a report on its findings to the legislature.
The UEZ program provides incentives to encourage businesses to locate to urban areas and create private sector jobs.
Offshore Drilling, S-258 (Van Drew, D-1; Singleton, D-7)/A-839 (Land, D-1; Andrzejczak, D-1)
Passed Assembly April 12, 2018, sent to governor.
NJBIA position: support
The bill would prohibit offshore drilling for oil or natural gas in state waters and prohibit the leasing of tidal or submerged lands in state waters for oil or natural gas production, exploration or development.
The bill is in direct response to the federal government’s decision to allow offshore oil and gas exploration along the East Coast. New Jersey controls the first three miles of ocean at the state level, which the state could use to hinder or block drilling along the Jersey coast.
The bill is aimed at protecting New Jersey’s $38 billion tourism industry and the 50,000 jobs supported by its fishing industry.
We pay 36 hours a year sick leave that’s it we will not increase our sick leave.
Then be prepared to be forced out of business, your market share absorbed by more competent businesses that can provide services ethically.
Good riddance.
We will not be changing our sick leave program
We pay 36 hours sick leave that’s it
If Murphy wants to pay more he can pay it out of his pocket
From a Human Resources Manager’s view, your employee turnover must be horrific, and well deserved. Based on an average 8 hr work day, wouldn’t 40 hrs sick leave make more sense? Maybe ignore minimum wage requirements too. Then you’ll be paying more out in fines to the D.O.L. than if you treated your employees fairly from the start.
Would this law apply to season employees as well?
I operate a small landscaping business 9 months a year.
Thanks for your question. Our Member Action Center helps to answer questions like this posed by businesses on a daily basis and should be able to provide some general guidance to you.
The legislation provides that an employee is not eligible to use the earned sick leave until 120 days after they begin working for an employer unless the employer agrees to an earlier date.
If you’d like to discuss your question further, please feel free to reach us at 1-800-499-4419, ext. 3 or member411@njbia.org.
Our paid time off is all in one bucket. We don’t have specific days for sick time. Would we be required to change our paid time off policy?
Thanks for your question. NJBIA’s Member Action Center helps to answer questions like this posed by businesses on a daily basis and should be able to provide some general guidance to you.
The legislation states that an employer is in compliance with the law if they offer straight paid time off which includes personal days, vacation days, and sick days as long as the time can be used for the same reasons and accrues at the same rate (or faster than) the legislation requires.
If you’d like to discuss your question further, please feel free to reach us at 1-800-499-4419, ext. 3 or member411@njbia.org.
We have a collective bargaining agreement (CBA) in which there is a service-based schedule of combined Personal Illness and Personal business. Initial eligibility requires one full year of service. Initial bank on combined Personal Illness and Personal business is 32hours per year. How, if at all, will the law impact negotiated CBAs? What, if any, does the law mandate as to Personal Business, i.e. care of a dependent where employee them self is not ill?
NJBIA’s Member Action Center helps to answer questions like this posed by businesses on a daily basis and should be able to provide some general guidance to you.
Since collective bargaining agreements can be very industry and be very employer-specific we always recommend they be reviewed by counsel in the context of new legislation.
That said, the legislation does recognize collective bargaining agreements in the sense that it states that nothing prohibits you from adopting a collective bargaining agreement to provide rights or benefits which are more favorable to employees than those required or not covered by the legislation. To the extent that the CBA is less favorable or has workers accrue time at a slower rate, it may need to be changed.
(For your reference, under the legislation workers earn one hour of time for every 30 hours worked up to 40 hours a year. Nothing would prohibit you from front loading the time at the start of the year.)
If a CBA is already in place when the law takes effect, it will not apply until the CBA expires.
In terms of the uses of sick time, workers can take time to care for a family member which is defined as a child, grandchild, sibling, spouse, domestic partner, civil union partner, parent, or grandparent of an employee, or a spouse, domestic partner, or civil union partner of a parent or grandparent of the employee, or a sibling of a spouse, domestic partner, or civil union partner of the employee, or any other individual related by blood to the employee or whose close association with the employee is the equivalent of a family relationship.
If you’d like to discuss your question further, please feel free to reach us at 1-800-499-4419, ext. 3 or member411@njbia.org.
Will the sick leave not be for all under a cba I am a chemical operator in the steal workers union?
Thanks for your comment. If a CBA is already in place when the law takes effect, the law will not apply until the CBA expires. Your union representative should have specific information about how the law will apply under your specific CBA.
we currently offer 2 weeks 80 hr paid vacation (12 employees) and 3 (personal or sick days) do we have to change out policy?
Employers can still provide PTO time which includes a combination of personal days, vacation days, and sick days, etc., as long as the time can be used for the same reasons and accrues at the same rate (or faster) than it does under the Paid Sick Leave Law. We are recommending that employers review current PTO policies, call-out and discipline procedures. Close attention should be paid to the law’s specific requirements on accrual, carry over, and the definition of a family member for whom paid sick leave could be used. If a current PTO policy is in excess of the new requirements, it need not be changed.
We have a five-page white paper available for our member companies that provides a lot of detail on this issue. If you are a member of the New Jersey Business & Industry Association (NJBIA) and interested in receiving it, please email us at member411@njbia.org. NJBIA’s Member Action Center helps to answer questions like this posed by businesses on a daily basis.
Is this applicable to part time and seasonal positions as well?
There is no seasonal or part-time exemption. However, employers are permitted to make new employees wait up to 120 days before starting to use their time.