Politicians love to express their support for small business owners – detailing how they
create more jobs than anyone else and are the backbone of the economy.
But when they pass a bill such as A3451/S2950, which broadens the New Jersey Family
Leave Act, small business owners may wonder if they mean what they say.
On the surface, the bill (pushed for Assembly Speaker Craig Coughlin and signed by
Gov. Phil Murphy last weekend) appears to be a win-win.
After all, it provides 12 weeks of job-protected leave every 24 months to eligible
employees who need to take time off to care for a family member with a serious health
condition or to bond with a new child or a child recently placed for adoption or foster
care.
In addition to expanding job-protected leave, the new law will empower workers to
utilize their Family Leave Insurance cash benefits, with the knowledge and comfort that
they can return to their jobs.
When the leave concludes, the employee is entitled to be restored to their position or a
position of equivalent seniority, pay, and benefits and employers cannot retaliate
against employees for taking or attempting to take leave.
To be sure: It will now be much easier for employees to qualify for two huge reasons:
- Company size: The bill used to be for companies with 30 or more employees –
that has been reduced to 15. - Time until eligible: The bill used to require employees to have worked at
company for at least 12 months (and worked 1,000 hours in the last 12 months).
Now, you only have to be employed for at least three months (and worked 250
hours in the preceding three months).
The legislation also provides additional job protections to those employees who utilize
Temporary Disability Insurance benefits for their own medical needs, requiring that
employees be restored to their position or a position of equivalent seniority, pay and
benefits upon their return.
Murphy touted the bill, saying it is another example of how his administration has
worked to support working families.
“By amending the eligibility requirements for job-protected leave, we are ensuring newer
employees and employees of small businesses are not excluded from the protections of
the New Jersey Family Leave Act,” he said.
“Now, employees will not have to work as long before being able to utilize their leave
with the assurance that they can return to their job once the leave concludes.”
While small business owners certainly want to care for their employees, extending this
provision hurts them greatly.
Critics of the bill say having companies with just 15 employees handle this requirement
will be challenging.
Chris Emigholz, the chief government affairs officer at the N.J. Business & Industry
Association, summed it up this way when it became clear the bill would pass.
“Unfortunately, this bill is another classic example of Trenton being tone deaf to the
concerns of our smallest employers,” he said.
Emigholtz said he can do the math and see that the bill doesn’t add up.
“When one employee in a 15-person business takes paid family leave, it means 7% of a
small business’ workforce is gone for 12 weeks,” he said. “Unlike a larger firm that can
more easily shift responsibilities among many workers, a small firm may need to hire
and train a replacement worker to keep the business running.”
Coughlin, however, said the data supports the new rules.
“Study after study shows that expanding family leave is good for the workforce, good for
babies and families, and good for our state as a whole,” he said. “By reducing the
amount of time someone has to be on the job before becoming eligible for family leave,
this legislation recognizes the realities of today’s workforce and makes sure more
parents can care for and bond with their newborn without fearing they’ll lose their job.
“No one should be penalized for needing time to care, and this bill helps make sure the
vast majority of workers never will.”
Sen. Andrew Zwicker, one of the prime sponsors of the bill, said the legislation is about
“fairness and dignity for working families across New Jersey.”
“For too long, hundreds of thousands of workers paid into Family Leave Insurance
without knowing if their job would still be there when they return from their own leave,”
he said. “In closing the gap by extending protections to employees working at smaller
businesses, no one will have to choose between caring for a new child or an aging
parent and keeping their livelihood.”
Union officials also supported the law.
“This is a commonsense reform,” New Jersey State AFL-CIO President Charles
Wowkanech. “Workers shouldn’t lose their job if they use the paid family leave program
to care for a newborn baby or to take care of a severely ill family member, especially
since workers’ pay 100% of the cost of the program.
“For too long, many workers have been afraid to access the paid family leave program
because their boss can permanently replace them if they do. What good is such a
program if a worker loses their job if they use it? Furthermore, an estimated additional
370,000 workers will be able to access the program due to this law. We thank Gov.
Murphy and the legislature for passing this law that takes a solid step forward by
providing job protection for additional workers.”
It goes without saying, but any added cost to a business owner will be met unfavorably.
Finding the balance of what companies can and should contribute always will be a
challenge.
This bill, however, certainly got the attention of business groups, who felt it was another
example of piling on.
Their biggest question: Who was pushing for it in the first place?
Tom Bracken, the CEO of the State Chamber, said the end result may be more
negative than positive.
“At a time when we need to accelerate our economy and provide incentives for people
to stay here, this is the exact opposite of what we’re supposed to do,” he said.
