Commencing July 1, 2009, employees taking “family temporary disability leave” shall be eligible to apply to the state for up to six weeks of disability benefit payments. This law is not really a "leave" law just as the State Disability Benefits Law is not a leave law but it is a Wage Replacement Law.

WHAT THIS MEANS TO YOU AS AN EMPLOYER?
Please see below for the basics of the plan.

BASICS OF THE PLAN

Which employees are covered?

All employees that work in the state of New Jersey and are subject to the New Jersey Unemployment Compensation Law. There is no 50 employee threshold as under FMLA and NJFLA

Which employees are covered?

All individuals who have worked 20 calendar weeks in covered NJ employment; or earned at least 1000 times NJ minimum wage during 52 weeks preceding leave. The minimum “hours of service" and 12 months of employment rules of FMLA and NJFLA are inapplicable to this wage replacement program.

For what reasons can employees take paid "leave"?

• To care for a newborn or newly adopted child, within 12 months of birth or placement
• To care for family member with serious health condition

How much are the employees paid while on paid "leave"?

2/3 of employee's average weekly wage, up to $524/week maximum.

How much paid “leave” do employees get?

• 6 (six) weeks with respect to “any one period” of family leave during any 12 month period
• 42 days with respect to “any one period" of family leave taken on intermittent basis during 12 month period

Who pays for the paid "leave"?

If under the State’s Plan, the benefit is 100% funded by employee payroll tax, no employer contributions - deductions should have began January 1, 2009. The tax is estimated to be $.64 per week ($33/year) per employee and is administered through existing State Temporary Disability Benefit Program.

Private plan

• Must be approved by the state at least 90 days prior to the date the private plan is to be effective
• Must be at least as liberal in benefits amounts, eligibility and duration of payment as state plan
• Employers can “mix and match” with state disability – both state, both private, or one of each

Is there a waiting period for paid leave benefits?

Yes, there is a 1 week waiting period. If benefits continue for more than 3 (three) weeks, then the benefits are payable retroactive to the first day. If an employee has personal disability and then immediately take Paid Family leave, then there is no waiting period

How much notice must employees provide?

To Care for Sick Relative:

• Consecutive leave – must provide prior notice “in a reasonable and practical manner” absent emergency
• Intermittent leave – 15 days prior notice, absent emergency

To Care for Newborn or Adopted Child

• 30 days prior notice
• Failure to provide required notice will result in loss of 2 weeks work of benefits, unless due to unforeseeable circumstance

Is medical certification required?

Yes, when leave is to provide care to sick family member. The leave request must state date of leave onset, probable duration, statement that condition warrants participation of employee, and estimate of amount of time care will be needed

What are an employer’s notice obligations?

• Must conspicuously post notice of Paid Family Leave Rights – CLICK HERE for NJ FLI Poster
• Must provide written copy of notice to each current employee – CLICK HERE for NJ FLI Notice Letter
• Must provide written copy of notice to each employee at time of hiring
• Must provide written notice whenever employee notifies employer of need for leave
• Must provide written notice upon first request of employee

How does paid family leave insurance interplay with FMLA and NJFLA?

• Paid Family Leave Insurance runs concurrent with FMLA and/or NJFLA leave
• Paid Family Leave Insurance does not reduce or impact leave rights under FMLA or NJ FLA
  

WHAT SHOULD I DO NEXT?
Familiarize yourself with the requirements of this wage replacement law. Also, for additional information, review the frequently asked questions found on the New Jersey Department of Banking and Insurance’s website CLICK HERE.

If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.