Client Alert

Contact:
Steven B. Harz, Esq., Chairperson
Labor & Employment Law Group
201-342-6000

NEW JERSEY ENACTS PAID FAMILY LEAVE ACT, PERMITTING EMPLOYEES TO
TAKE UP TO SIX WEEKS OF PAID LEAVE TIME TO CARE FOR A NEWBORN
OR NEWLY ADOPTED CHILD OR A SICK FAMILY MEMBER.

Dear Clients and Friends:

On May 2, 2008, Governor Jon S. Corzine signed into law the New Jersey Paid Family Leave Act (the “Act”) making New Jersey only the third State in the nation to require such paid leave.

Beginning July 1, 2009, employees will be permitted to take up to six (6) weeks of paid leave in connection with either the birth or adoption of a child or a family member's serious health condition. The Act defines a family member as a biological, adopted or foster child under nineteen (19) years of age, a child over nineteen (19) years of age who is incapable of self care, a spouse, a domestic partner, a civil union partner, a biological, foster or adoptive parent or stepparent or a legal guardian of the employee when he or she was a child. A serious health condition is defined as one that requires inpatient care in a hospital, hospice or residential medical care facility or that requires continuing medical treatment or continuing supervision by a health care provider. Employees may not use family leave time for their own health conditions.

Family leave may be taken at any time within one (1) year of the birth or adoption of an employee's child. Leave must be taken consecutively under these circumstances unless the employer and employee agree on a plan that provides for intermittent leave. Employees must give their employers thirty (30) days notice before taking leave to care for a child. Failure to give this notice requires the employee to forfeit two (2) weeks of leave, unless the failure was caused by unforeseeable circumstances.

Family leave in connection with a family member's serious health condition may be taken either consecutively or intermittently. In either case, employees are required to provide their employers with a medical certification of the necessity of the leave, and to give their employers prior notice in a reasonable and practicable manner unless unforeseen circumstances preclude such notice. Employees seeking intermittent leave to care for a sick family member must give their employers fifteen (15) days notice unless it is precluded by unforeseen circumstances and the employees make a reasonable attempt to schedule their leave in a non-disruptive manner.

Employees may receive up to two-thirds (2/3) of their wages during family leave, or a maximum of $524.00 per week. The maximum benefit rate will be adjusted every year. In order to be eligible for leave under the Act, an employee must earn either $143.00 or more per week for twenty (20) consecutive weeks or $7,200.00 or more during the previous fifty-two (52) calendar weeks. Small employers are not required to hold employees' positions open during family leave time under this Act; however, larger employers may be required to do so pursuant to other applicable state or federal laws, including the Federal Family and Medical Leave Act (“FMLA”) and the New Jersey Family Leave Act (“FLA”). Employees may not receive temporary disability or unemployment compensation benefits for the time period during which they receive paid family leave benefits. In addition, benefits under this program run concurrently with, rather than consecutive to, any leave provided under the FMLA.

Family leave benefits under the Act are funded solely through a new payroll tax on employees, which will be implemented on January 1, 2009. Employers will not contribute to the fund. Employees of companies that have an approved private plan for temporary disability benefits will not be required to contribute to the fund if the benefits provided by the company are consistent with or exceed those provided as a result of the Act.

If you have any questions with regard to the application of this case to your Company or with respect to any other labor and employment law matter, please do not hesitate to contact Steven Harz, Esq. at (201) 342-6000, or via email at sharz@hertenburstein.com