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New Jersey’s Friendly Paid Family Leave Law Just Got a Whole Lot Friendlier!

Continuing his trend of protecting and providing for middle class employees and working families in the State of New Jersey, Governor Phil Murphy signed A3975 on February 19th, a law which effectively expands an already generous paid family leave program for those who are forced to miss work to care for a newborn child or other loved one suffering from a serious health condition, into one of, if not the most generous paid leave law in the nation.

Quoting the Governor, “No one should have ever be forced to choose between caring for a family member and earning a paycheck”.

In summary, the new law (which has varying commencement time-tables) provides for the following:

  • Increases the number of weeks for NJ FLI (Family Leave Insurance) and NJ TDI (Temporary Disability Insurance) from 6 weeks to 12 weeks in any 12 month period, and increases the intermittent paid leave period from 42 days to 56 days in any 12 month period (effective July 2020);
  • Increases the current maximum weekly benefit from $650 a week to $860 a week during the leave, an increase from 66% of weekly pay to 85% (effective July 2020);
  • Contains an anti-discrimination/anti-retaliation and reinstatement provision for all employers with an employee population of 30 or more, down from 50 (effective June 30, 2019);
  • Broadens paid leave to care for those beyond immediate family members; the law now includes caring for siblings, in-laws, grandparents and grandchildren, domestic partners, other blood relatives, as well as any other unrelated individual that has such a close relationship that could be construed as “family” (effective immediately);
  • Applies when leave is needed to address domestic and sexual violence situations for one’s self or a family member (effective immediately).

Notably, the funding for A3975 shall be derived exclusively from employee payroll deductions, which means that current employee pay deductions will increase.  Employers will not be required to contribute to these enhanced benefits.

© 2019 Giordano, Halleran & Ciesla, P.C. All Rights Reserved

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About this Author

Jay S. Becker, Giordano Law Firm, Labor Employment Attorney
Shareholder

Mr. Becker, Chair of the Labor and Employment Practice Area, devotes his practice to labor relations and employment law and litigation on behalf of management. His experience includes conducting trials, hearings, arbitration and mediation sessions; responding to state and federal administrative agency charges; collective bargaining; drafting employment-related corporate documents such as restrictive covenants, employee handbooks, employment agreements, various stock and compensation plans, and separation/severance agreements. He counsels employers on all employee relations issues including...

732-741-3900
Jeri L. Abrams, Giordano Halleran,  Employment Documentation Lawyer, Workplace Litigation Attorney
Shareholder

Jeri focuses primarily on employment law, with an emphasis on drafting and negotiating complex employment-related documentation, such as executive employment, consulting, restrictive covenant, commission, bonus, retention, change-in-control and severance agreements. Jeri counsels employers on a broad range of employment matters, including hiring, disciplining and terminating employees, family and medical leaves, disability leaves and accommodations, anti-discrimination and anti-retaliation laws, wage and hour compliance, and reductions in workforce. She works closely with management, in-house counsel, and human resources personnel in the development and implementation of employment policies and handbooks that comply with applicable law and are consistent with the employer's unique practices and organizational culture. Jeri also advises clients on the employment aspects of M&A deals and other corporate transactions.

Representative Matters 

  • Fortune 300 Company: Represented client in 4 separate recent acquisitions; drafted and negotiated complex executive employment agreements between the client and the founder of the acquired businesses, each of whom were integral to the value of the business being purchased.
  • Publicly-held Pharmaceutical Company: Represented client during a major workforce reorganization, which included 2 plant closures, staff relocations and a series of 9 reductions in workforce; worked closely with the client's legal and human resources departments to ensure the orderly separation of more than 600 employees and to minimize associated legal risks and business disruption; provided advice related to federal and state WARN act issues, wage and hour laws, OWBPA requirements and severance arrangements; prepared and negotiated severance agreements.
  • Publicly-held REIT: Advised client on a wide-array of unique employment matters in the context of the "spin-off" of one of its divisions.
  • Private Equity Firm: Represented large private equity client in connection with a high risk and sensitive termination of the CEO of one of its portfolio companies.
  • Private Equity Firm: Represented private equity firm in the drafting and negotiation of employment agreements for the senior executives of a large portfolio company.
732-741-3900
Ari G. Burd, Giordano Law Firm, Labor Employment Attorney
Associate

Mr. Burd practices in both the Labor and Employment Law Practice Area and the Health Care Practice Area. In the Labor and Employment Practice Area, Mr. Burd devotes his time to litigation and counseling employers with regard to traditional employment and labor related issues. Mr. Burd has extensive experience in both the state and federal courts in areas including retaliation, wrongful termination, wage and hour, sexual harassment and race, age, gender and disability discrimination. Mr. Burd also has considerable experience in assisting negotiating and drafting employment related...

732-741-3900