N.J.’s paid family leave program is about to pay out much more

stock pregnant worker

Stock pregnant worker

New Jersey’s paid family leave program may soon soon be expanded big-time, which means you would get paid more for taking time off from your job while caring for a newborn or ill family member.

A bill to beef up paid family leave is now Gov. Phil Murphy’s desk after it was passed by both houses of the Democratic-controlled Legislature on Thursday.

The program, which covers those who work in New Jersey, is one of just a few in the country. But labor advocates for years have argued it does not reimburse workers enough for wages they lose by taking off from work. They say many low- and middle-income families simply can’t afford to take the time off.

Right now, new parents or caregivers can receive up to six weeks of benefits equal to two-thirds of their pay, but capped at $633 a week.

The bill (A3975) would increase the eligibility period from six to 12 weeks and raise the cap on the reimbursement an applicant can receive to 85 percent of their wages — up to $859.

“Far too many workers were not taking leave, even though they pay into the program, because they either didn’t know about it or couldn’t afford to use it,” Sheila Reynertson, a senior policy analyst for New Jersey Policy Perspective, said in a statement.

“By improving wage replacement rates, more low-income workers can afford to take leave when they need it. And by expanding the length of leave from 6 weeks to 12 weeks, more new parents can take the necessary time to recover from birth and bond with a new child.”

Dena Mottola Jaborska, associate director of New Jersey Citizen Action, which advocated for the changes, said the goal is to design a program low- and middle-income workers can use and to make the numbers work for families with two earners who want time off to bond with a newborn.

Siblings, grandparents, grandchildren and parents-in-law also would be newly covered as caregivers. Under the current law, only children, parents, spouses, domestic partners and civil union partners qualify.

The bill also confers job protections as part of the insurance plan to employees of businesses with at least 30 employees, down from 50.

This bill also sets aside $1.2 million to advertise and promote the paid leave program.

The expansion does come at a cost to New Jersey workers. The paid family leave program is funded by workers through a small payroll deduction. As of Jan. 1, every worker is contributing on their first $34,400 in wages, or a maximum of $27.52 a year.

The bill adjusts this formula to tax the first $131,000 in wages, Reynertson said. It’s not clear exactly how much more those working in New Jersey would pay because the rate is changed each year.

Assemblyman Anthony Bucco, R-Morris, said Thursday the increased payroll deduction is an unfair tradeoff for enhanced leave benefits.

“I think if you asked folks whether or not they’d rather keep the money in their pocket than have an expansion to the family leave act, that they may or may not ever use, I think most people would say they’d rather keep the money in their pocket,” he said.

Murphy is expected to sign the bill, and the increased benefits would take effect in July 2020.

The nonpartisan Office of Legislative Services estimates insurance claims paid out will increase by $287 million to $365 million a year once the expansion is implemented.

From 2009 to 2015, family leave insurance paid out nearly half a billion dollars in benefits for more than 200,000 claims. About eight in 10 claims are to bond with a child, while two in 10 are to take care of a family member.

Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Find NJ.com Politics on Facebook.

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