Paid Family Leave Insurance

WHAT IS IT?

6 weeks of partial wage replacement over a 12-month period to bond with a newborn or newly adopted child or to care for a seriously ill child, parent, spouse or domestic partner.

People taking this leave will receive up to two-thirds of their usual wage, with a maximum of $524 a week in 2008. The limit will rise yearly to keep up with the cost of living.

 

WHO GETS IT?

The more than 3.2 million workers of businesses of all sizes who currently pay into the state’s Temporary Disability Insurance (TDI) program, or are covered by the state’s Unemployment Insurance program would be covered. That’s anyone working for a New Jersey employer for at least 20 weeks and who has earned $143 in a base week.

WHO PAYS and HOW MUCH?

Depending on their current wages, workers would pay an additional sum into the TDI fund. Starting January 1, 2009, a 0.09% payroll deduction will begin to taken on the first $27,700 (adjusted annually for Cost Of Living 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 $33/yr or 64 cents per week.

WHEN WILL IT BE AVAILABLE?

Payroll deductions will begin in January 2009 and benefits will be available starting July 1, 2009. Workers wanting to bond with a new child can receive FLI benefits during the first 12 months after the child's birth or placement for adoption with the worker’s family.

WHAT DO PEOPLE GET NOW?

Some people have employers who grant them paid leave. Some are required to use vacation or sick time. But some have no options at all. Low-wage service workers are among those least likely to have access to paid leave of any kind.

The federal Family and Medical Leave Act lets workers in companies of 50 employees or more, and public sector workers, take up to 12 weeks of unpaid leave over a 12-month period to care for a new child, a seriously ill family member or the employee’s own serious health condition. More than 40% of workers aren’t covered.

The New Jersey Family Leave Act lets workers in companies of 50 employees or more, and public sector workers, take up to 12 weeks of unpaid leave over a 24-month period for the birth or adoption of a child or s serious illness of a parent, child or spouse.

The state’s Temporary Disability Insurance system provides two-thirds wage replacement to those who can’t work because of sickness or injury not sustained on the job—including pregnancy disability and recovery from childbirth.

Who Administers The Plan?

The New Jersey Department of Labor and Workforce Development will administer the program and employees in need of benefits will apply directly with them.