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New Jersey Family Leave Act Allows Paid Leave to Employees

Governor Corzine has signed into law a bill which allows employees to take paid leaves of absence to care for family members. This makes New Jersey the third state, in addition to California and Washington, to offer paid family leave. The paid New Jersey Family Leave Act (NJFLA) allows workers to apply for up to six weeks off, and collect up to two-thirds of their pay, up to a maximum of $524 a week.

Who are covered employers?

Covered employers include all private businesses (and state government sector employers) who are a covered employer under the Temporary Disability Benefits Law. Any entity which employs one or more individuals and pays the individual(s) at least $1,000 in the current or preceding calendar year is covered. Employers have the option of using the State-operated plan or a private plan through self-insurance or an insurance policy. The private plan must provide the same (or better) benefits under the same eligibility requirements and costs to the employee as the State-operated plan.

Who are covered employees?

Covered employees include any individual who has at least 20 calendar weeks in covered New Jersey employment in which he or she earned no less than an amount equal to 20 times the minimum wage (currently $143 per week), or has earned not less than 1,000 times the minimum wage adjusted to the next higher multiple of $100 (currently $7,200 per year) in such employement during the "Base Year" period.

When is an employee permitted to take a paid leave?

A covered individual is eligible for family leave benefits if he or she takes leave from work to care for a newborn or newly adopted child, or a sick parent, spouse or child. A family member is defined as a child, spouse, domestic partner, civil union partner or parent of a covered individual. Moreover, under the NJFLA, an employee may commence leave for the birth of or the placement of a child for adoption any time within one year after the date of birth or placement for adoption. However, the bill limits family leave benefits to the first 12 months following the child's birth or the placement of the child for adoption.

While the definition of a serious health condition is the same definition as under the NJFLA, the coverage of benefits is not the same. For example, a covered individual will not be able to take paid leave to care for a parent-in-law. Therefore, it is crucial to review the law and your company's policies.

What about intermittent leave?

A covered individual may take intermittent leave to care for a family member who has a serious health condition if: (1) the total time within which the leave is taken does not exceed 12 months; (2) the individual provide not less than 15 days' notice before the first day on which benefits are paid, unless an emergency or other unforeseen circumstance precludes prior notice; (3) the individual makes a reasonable effort to schedule the leave so as not to unduly disrupt the operations of the employer and, if possible, provide a schedule of the intermittent leave; and (4) the individual submits a medical certification which includes the information set forth above and a statement of the medical necessity for the intermittent leave, the duration of the intermittent leave and, if leave is for planned treatments, the dates of the treatments.

What are the employee's obligations?

An employee must provide 30 days' notice if leave is sought to be with a child after birth or adoption. An employee must provide the employer with prior notice of the leave in a reasonable and practicable manner if the leave is to care for a family member with a serious health condition, unless an emergency or other unforeseen circumstance precludes prior notice. The employee also must make a reasonable effort to schedule the leave so as not to unduly disrupt the operations of the employer. Finally, an employee must provide a medical certification from the health care provider of the family member.

What about exhaustion of paid time off?

Employers may require employees to exhaust paid time off (such as vacation and sick time) only for the first two weeks of the leave. The existing unpaid leave laws expressly permit employers to require the use of paid time off for leaves. Workers seeking leave time would be required to provide their employers with prior notice of the need for leave time, along with a doctor's note listing details of the need for the time off.

What about job protection provisions?

Employers with fewer than 50 workers are not required to take the worker back after the leave ends. However, this does not really mean that smaller employers can refure to reinstate people who take leaves under this law. For example, businesses do not have the right to terminate employees who take the leave for childbirth. The New Jersey State Law Against Discrimination, the Federal Pregnancy Anti-Discrimination Act, and the Americans with Disabilities Act stand against this.

When does this law take effect?

Covered employees will not be eligible to receive benefits until July 1, 2009, although employees will begin paying the tax on January 1, 2009.