Paid Family Leave in New Jersey

New Jersey’s Family Leave Insurance (FLI) program will expand the state’s existing Temporary Disability Insurance program to provide workers with 2/3rds of their normal salary (capped at $524 in 2008) to care for a seriously ill child/spouse/parent or to bond with a newborn or newly adopted child.

Starting January 1, 2009, a 0.09% payroll deduction will be taken on the first $27,700 (adjusted annually for COL increase) of an employees wages. This rate will increase to 0.12% on January 1, 2010. If the 0.12% rate were applied to the $27,700 of a worker’s wage 2008 taxable wage, the maximum any NJ worker would pay is approx. $33/yr or 64 cents per week.

Starting July 1, 2009 workers will be eligible for up to 6 weeks of FLI in any 12 month period. Workers wanting to bond with a new child can use FLI during the first 12 months after the child’s birth or placement for adoption with the worker’s family.

Workers of businesses of all sizes will pay into the program and be eligible to draw benefits from the FLI fund. However, no new job protections are being created for employees of businesses that are not covered by the NJ Family Leave Act or the federal Family Medical Leave Act.

Employers have the option of using the State-operated plan or a private plan, so long as employees are not charged more, the benefits are not lower and eligibility is not more restrictive than under the State plan.

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