New Jersey is significantly expanding an employee’s right to paid and unpaid leave. Employers should begin reviewing their policy materials to comply with new legislation signed by Governor Phil Murphy on February 19, 2019.

Currently, New Jersey employees covered by the state’s Temporary Disability Insurance system are entitled to paid family leave benefits.  Unlike the New Jersey Family Leave Act (NJFLA) and the federal Family Medical Leave Act (FMLA), the statute is a wage replacement law and not a true leave law.

In order to be eligible for paid family leave benefits, employees must have had at least 20 calendar weeks in covered New Jersey employment, and meet the minimum earning requirements under the Temporary Disability Insurance law.  Most notably, the new law amends New Jersey’s paid and unpaid leave programs in the following ways:

• Weekly Benefits.  Effective July 1, 2020, the law increases the maximum total paid family leave insurance (NJPLI) benefits payable to any eligible employee from $650 to $860 per week.

• Leave Period.  Effective July 1, 2020, the law expands the length of time for which NJPLI benefits can be paid from 6 weeks to 12 weeks in a 12-month period.  With respect to intermittent leave, the maximum leave period increases from 42 days to 56 days.

• Definition of Employer.  Effective June 30, 2019, the law expands the definition of “employer” under the NJFLA to include individuals or entities that employ 30 or more employees, instead of the previous threshold of 50 or more employees. 

• Definition of Family Member.  The law expands the definition of “family member” for whom a covered employee can take leave under the NJFLA to include a sibling, parent-in-law, grandparent, grandchild, domestic partner or any individual related by blood to the employee, as well as any individual with whom the employee has a “close association” which is “the equivalent of a family relationship.”

• Bonding Leave.  The law permits an employee to take leave on an intermittent basis for the birth, adoption or foster care placement of a child under the NJFLA. 

• Gestational Carrier.  The law expands the right to unpaid and paid leave to employees who become parents pursuant to a gestational carrier agreement.

• New Jersey Safe Act.  Employees taking leave pursuant to the NJ Safe Act may now elect to use their paid family leave benefits.
• No Waiting Period.  The law removes the waiting period for the payment of NJPLI benefits for leave commencing on or after July 1, 2019.
• Exhaustion of Other Sick Leave/Vacation Time.  The law permits an employee to exhaust all unused paid sick leave, vacation time, or any other paid leave made available by the employer before he/she uses disability benefits, provided, however, that the use of employer paid time off will not reduce the total amount of state leave benefits made available to the employee.  Previously, the employer could require that an employee exhaust up to two weeks of unused paid leave.  For New Jersey Safe Act leave, the employee may elect but cannot be required to use accrued paid time off.

• Partial Benefits for Employees on Light Duty.  An employee who is otherwise eligible for disability benefits, but only able to return to work on a reduced basis while recovering from the disability, shall be entitled to partial benefits.  If the employer is unable to accommodate the employee on a reduced basis, the employee will continue to be eligible for benefits until he/she is fully recovered from the disability and able to perform the duties of employment.

• Anti-Discrimination & Anti-Harassment.  The law provides that an employer may not discharge, harass, threaten, or otherwise discriminate or retaliate against an employee because the employee exercised his or her rights under the law with potential civil penalties, including a private right of action and fines. 

In light of these expanded protections and benefits, employers will need to reexamine their employment materials (e.g., handbooks, policies and procedures) to ensure compliance with the amendments to New Jersey’s paid and unpaid leave programs.

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