On Thursday, June 22, the Assembly is scheduled to vote on legislation to expand New Jersey’s Paid Family Leave program – a change NJBIA opposes because it will make it more difficult for you to run your business and potentially lead to tax increases to cover the added cost to the program.
The legislation, A-4927, would increase employee benefits, expand the number of people who can take leave and double the length of time employees can be away from their jobs from six to 12 weeks. The projected price tag for these changes in 2016, according to the nonpartisan Office of Legislative Services, would have been $236 million—a $147.3 million increase over the $88.7 million spent on Family Leave benefits during that year.
Expanding the number of weeks an employee can be out and increasing their benefits, all without adjusting the current payroll tax, will deplete the fund, and the state will be looking at more taxes to pay for the program. Requiring short-staffed businesses to cover for an employee on a 12-week leave will be disruptive and expensive for the business community.
Furthermore, a provision lowering the exemption threshold from 50 or more employees to 20 or more employees is a significant change to the current law that will have a negative impact on small businesses.
This legislation, if enacted, will harm small business, hurt economic growth, and make New Jersey less competitive with other states. Please click here to send a letter to your Assembly representatives urging a NO vote on expanding Paid Family Leave.
If you have any questions, please contact Mike Wallace, Director of Employment & Labor and Federal Affairs at mwallace@njbia.org.
