New Jersey Business & Industry Association President & CEO Michele Siekerka issued the following statement Wednesday about legislation on the Governor’s desk that would change the existing Paid Family Leave law to increase benefits, expand eligibility to more workers, and double the length of a paid leave to 12 weeks.

“Increasing the cost of the paid family leave program without adjustments to the payroll tax that pays for it all means the fund will soon be depleted as more employees qualify to take a longer leave and receive increased benefit checks.

“In fact, the nonpartisan Office of Legislative Services’ fiscal analysis determined the state’s existing paid family leave program, which cost $88.7 million in 2016, would have cost $236 million if the proposed changes had been in effect last year—a $147.3 million increase. If this bill to significantly expand the program becomes law, there’s no doubt the Legislature will next look to increase employer payroll taxes to keep the fund from going broke.

“Doubling the length of time that an employee can be away from work from six weeks to 12 weeks would be extremely disruptive to a small business’ operations. Moreover, the legislation also lowers the exemption threshold from 50 to 20 employees, meaning more small businesses will be negatively impacted.

“NJBIA urges the governor to protect small businesses, which are the engine that drives the state’s economy, by vetoing this bill that would only make it more expensive and less attractive to do business in New Jersey.”

7 responses to “NJBIA Statement on Paid Family Leave Expansion Bill”

  1. David katz says:

    Yes veto I can barely afford even operating my company in New Jersey. I will relocate or have to lay off employees

  2. Don Wicklund says:

    More stupid ideas from people who do not have to deal with the new problems that this will create. Why do our taxes pay for people to think up things that will ruin the lives of business owners and their employees if they cannot survive this. If someone needs to take off three months out of each year then they should be considered to not be eligible for full time work. New Jersey businesses will pack up and leave or close their business and go to work at a job with these benefits.

  3. Doug Hulse says:

    We have already relocated part of our business out of this state. This will finally push me to close the remainder of the manufacturing here. I have purchased a home in SC that is to be used for retirement due to this state’s complete lack of understanding on where their tax money comes from. Now they will lose an additional 12 jobs here.

    These “smart people” have no clue on what is really happening under their noses. I would say that the word politician should now be redefined in our language as meaning a person that is “truly ignorant and out of touch with reality.”

    A sad state of affairs here…

  4. Bill Lehman CEO says:

    With all the new legislation, taxes and now doubling the family leave from 6 – 12 weeks, how can we run our businesses without employees who are paid not to work! We’re leaving New Jersey. Go Bye 32 jobs!

  5. Jan Sandri says:

    Trenton should all be fired and we should start over. Let’s clear out our SWAMP. I employ over 100 employees and cannot imagine staying in NJ if this passes. Our politicians are out of touch with reality and don’t care about business in NJ. All they care about is getting more votes, but who is going to pay those voters when we all leave. They will have to build a wall around NJ to keep businesses here!

  6. John D. Decker says:

    This is what happens when you have a boatload of lawyers with no experience running a business craft our laws. The idea that a business with twenty employees can sustain this burden is absurd.

  7. Vivian George says:

    Before anyone can be elected to office they should have successfully run a small business for at least 5 years that employs 25 or less employees. I find it impossible to hire enough employees to just exist but I would have to have a backup list to cover in the event that an employee would take this extended leave.