Bill Would Require Small Businesses To Give Paid Family Leave The 74

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A state Senate panel advanced a bill Monday that would expand New Jersey’s family leave law to businesses with at least 15 workers,a change from the current threshold of 30 employees.

The bill has seen some changes since it passed the Assembly in February. It had initially lowered the worker threshold to five, to widespread criticism from the business community. Business groups remain opposed, saying that encompassing businesses with fewer than 30 employees would deter hiring and potentially force small businesses to close their doors.

“New Jersey small businesses are already shouldering some of the highest operating costs in the country, including labor, insurance, property taxes, and compliance obligations,” said Amirah Hussain of the New Jersey Chamber of Commerce. “Imposing these mandates introduces a new layer of risk and unpredictability.”

Yarrow Willman-Cole, with consumer advocacy group New Jersey Citizen Action, testified in favor of the bill, saying 1.7 million workers are not covered by the state’s current family leave law.

“We passed paid family leave 17 years ago. It took us 10 years to improve it. It should not take another decade to get this right,” Willman-Cole said.

“Our laws should reflect our society’s growing caregiving needs. New Jersey is, in fact, not keeping up.”

The Senate Judiciary Committee’s Republicans and Sen. Paul Sarlo (D-Bergen), the panel’s chair, voted against advancing the bill.

New Jersey law requires that businesses provide eligible workers with up to 12 weeks of paid leave to bond with a new child or to care for a loved one. Workers pay into the fund that pays out benefits, and the benefits are based on a worker’s earnings. Workers’ jobs are protected until their leave ends.

The committee amended the bill Monday to include employees who have worked for a company for six months — current law says 12 months — and for 500 hours, down from 1,000 hours. The bill would take two years to phase in.

Elizabeth Zuckerman of the state chapter of the National Employment Lawyers Association said that whatever “small burden” the bill puts on an employer is justified to keep parents from choosing between bonding with their children or keeping their job.

“We are a pro-family country. We should support our families by allowing employers or encouraging employers to give employees time off when they need to care for a child or a family member,” Zuckerman said.

Businesses remain concerned that the bill would put an “unsustainable burden” on small employers, said Frank Jones with Big I New Jersey, which advises independent and locally owned insurance agencies.

Jones said he supports the goal of the bill to give workers access to family leave, but when businesses with 15 employees lose one person, it’s difficult for the remaining workers to juggle the work. He also said it would drive up liability insurance costs. He stressed that paid benefits and job-protected reinstatement should be separate issues.

“The mandatory reinstatement requirement, regardless of business conditions, removes the flexibility small business employers need to survive,” Jones said. “Agencies may be forced to permanently restructure or hire to maintain client service, only to face liability for not reinstating later, even if decisions were made in good faith.”

New Jersey Monitor is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. New Jersey Monitor maintains editorial independence.

Contact Editor Terrence T. McDonald for questions:(email protected).

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