New Jersey Gov. Signs Family Leave Bill

New Jersey Gov. Jon Corzine has signed an historic family leave insurance bill, propelling New Jersey to become only the third state in the nation to enact a family leave program for workers caring for sick family members, newborn and newly-adopted children.

The state of California implemented its program in 2004 while the state of Washington passed legislation last year.

“This family leave insurance bill is personally significant to me,” said Corzine. “When I was in the hospital after my accident last spring, it was the strong support from my family that kept me going. I was fortunate my family members had the flexibility to be there for me, day-in and day-out. But not everyone has that luxury.

“I believe the daily reality of the lives of New Jersey families makes this historic law a necessity. I am confident this self-funded family insurance program will improve family life, fill a gap in our social contract with our citizens, and attract workers to this state. More than ever, I am proud to sign this bill into law on behalf of all working New Jerseyans.”

The legislation extends the state's existing Temporary Disability Insurance (TDI) program and permits up to six weeks of insurance benefits for workers taking leave to provide care certified to be necessary for a family member.

The program requires no contributions from employers and is 100% funded by an employee payroll deduction amounting to approximately $33 a year, or 64 cents a week. Participating workers will receive no more than two-thirds of their weekly pay, up to a maximum weekly benefit of $524 in 2008.

The legislation also ensures that small businesses (50 or fewer employees) have the option to replace employees receiving Family Leave Insurance benefits. To prevent fraudulent claims, certain anti-fraud measures of the Temporary Disability Benefits Law such as criminal penalties and increased fines for those who improperly claim benefits, will be used.

The Department of Labor estimates that approximately 38,000 individuals or about 1 percent of New Jersey’s workforce will collect benefits annually.