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Guest Article

(From the May 12, 2008 issue of Deloitte's Washington Bulletin, a periodic update of legal and regulatory developments relating to Employee Benefits.)

New Jersey to Provide Paid Family Leave

Effective July 1, 2009, New Jersey will provide up to six weeks of paid leave for employees to take care of a family member with a serious health condition or to be with a child during the first year after birth or placement for adoption. In enacting the new law, New Jersey becomes one of a handful of states -- joining only California and Washington -- to provide a paid family leave program.

Summary of the Program

New Jersey's Family Temporary Disability Leave is a permanent extension of the State's Temporary Disability Insurance (TDI) program. Briefly, it provides:

Up to six weeks of paid leave in a 12-month period for employees who pay into the State's TDI program (i.e., generally, any employee of a New Jersey employer who has worked for at least 20 weeks or earned at least 1,000 times the applicable minimum wage during the prior year).
Leave for the purpose of:
- Caring for a child, spouse, domestic partner, civil union partner, or parent with a serious health condition, or
- Being with a child during the first 12 months after birth or placement for adoption.
Payment of up to 2/3 of the employee's weekly salary during the leave period, capped at $524 per week (based on 2008 benefit levels). A one-week waiting period applies before benefits begin, and the employer may require the employee to use up to 2 weeks of paid vacation or other paid leave before the benefits begin.

Payment is made from the TDI program. The cost is to be borne through the imposition of a new payroll tax, effective January 1, 2009, on New Jersey workers that is estimated not to exceed $33 per worker per year.

Employers are required to post and distribute a notice of the new Family Temporary Disability Leave program within 30 days after it is developed by the Commissioner of Labor. Notice also must be given when an employee is hired, at the request of an employee, and when an employee notifies the employer of a leave that is covered by the Family Temporary Disability Leave program.

The information in this Washington Bulletin is general in nature only and not intended to provide advice or guidance for specific situations.

If you have any questions or need additional information about articles appearing in this or previous versions of Washington Bulletin, please contact: Robert Davis 202.879.3094, Elizabeth Drigotas 202.879.4985, Mary Jones 202.378.5067, Stephen LaGarde 202.879-5608, Erinn Madden 202.572.7677, Bart Massey 202.220.2104, Mark Neilio 202.378.5046, Martha Priddy Patterson 202.879.5634, ? Tom Pevarnik 202.879.5314, Sandra Rolitsky 202.220.2025, Tom Veal 312.946.2595, Deborah Walker 202.879.4955.

BenefitsLink is an independent national employee benefits information provider, not formally affiliated with the firms and companies who kindly provide much of the content and advertisements published on this Web site, including the article shown above.