Greater Paramus Chamber of Commerce Position Paper

Issue:

 Paid Family Leave

Sponsors:

S-2249Sca – Sweeny (D-3, Buono (D-18) +4

A-3812 - Albano (D1); Panter (D12); Oliver (D34); Van Drew (D1) +11

Description:

If enacted, this legislation would make New Jersey only the second state in the country to mandate employers to provide paid family leave to employees with newborn children, ill family members or the placement of a family member in extended care.  As written the NJ law would be twice as generous as California’s law (12 weeks vs. 6 weeks).  This act would apply to every New Jersey employer. 

The legislation would expand the State’s Temporary Disability Insurance plan (TDI) to, for the first time, pay people without disabilities.  It would require up to 12 weeks of paid leave to workers caring for a family member as outlined in the bill.  Employees would receive 60% of their weekly wages up to $502 per week. 

Funding for the program would be through an increase in the TDI tax to employees of 0.1%.  Beginning in 2009 the law would authorize the Commissioner of Labor to increase the levy annually should additional funds be needed.

Position:

It is the position of the Greater Paramus Chamber of Commerce to strongly oppose enactment of S-2249SCA/A-3812 as the legislation sends the wrong message to existing and potential businesses and further erodes New Jersey’s reputation as an unfriendly state to do business in. 

Approved by the Greater Paramus Chamber of Commerce on: April 12, 2007

                                                               _

Dimitri Miaoulis

Chairman

GREATER PARAMUS CHAMBER OPPOSES

PAID FAMILY LEAVE

Under this legislation, already approved by the Senate Labor Committee, every employer will be forced to impose a 12-week paid family leave mandate for all employees.  Employees would be able to receive up to $502 per week, for 12 weeks, in temporary disability benefits in order to care for a sick family member or bond with a new child.  Employers will not be able to require their employees to use paid sick or vacation time first.  Unlike the current state and federal unpaid family leave laws that apply to companies with fifty or more employees, this bill has no such exceptions and will apply to all businesses employing 2 or more individuals.

Funding for this program will come from a new 1 percent tax on New Jersey workers’ wages through payroll deductions.  This new tax will equal about $25 a year for minimum wage workers and about $140 a year for those earning at least $90,000 a year annually.  The majority of New Jersey resident workers already pay $130 a year to a Temporary Disability Insurance Fund.

Business leaders joined NJBIA President Philip Kirschner in testifying against the legislation including Joe Kelly, President of the Atlantic City Regional Mainland Chamber of Commerce and Lori Anne Oliwa, Vice President of the New Jersey Association of Women Business Owners (NJAWBO).  Over 5,000 messages were sent to legislative leaders and the Governor’s office opposing the new paid family leave mandate.

New Jersey would become the second state to offer paid family leave.  California has already passed this legislation but limits it to six weeks.  According to a February 9th article in the Asbury Park Press, a state mandated “one size fits all” family leave program is something the state’s businesses and their employees cannot afford.  Family leave is best left to individual businesses, based on individual circumstances.  The payroll deduction is another tax on businesses in states that CEO Magazine finds to be the worst tax atmosphere for business in the country.  In addition to the financial cost to the business community, the mechanics of training a new temporary employee for only twelve weeks in small business (from 2 – 49 people) will cause extreme hardship and inefficiency that some small businesses may not recover from.

The Greater Paramus Chamber of Commerce, representing more than 350 employers, opposes this bill that would require paid family leave of 12 weeks for employers with only 2 or more employees in New Jersey, and urges the defeat of this legislation.