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Increased Benefits Proposed For New Jersey Paid Family Leave Insurance

New Jersey is one of five states which provide for paid family leave.  Under New Jersey’s Paid Family Leave Insurance law, eligible employees can take up to six weeks of leave to bond with a newborn or newly adopted child or to care for a family member with a serious health condition.  Employees are paid benefits equaling two thirds of their salary, which for 2017, is capped at $677.00 per week.  It has been reported that since the law’s enactment in 2009, more than 150,000 employees have received paid family leave insurance benefits.

Last week, Senate Democrats introduced a bill that would increase the amount of paid family leave from six to twelve weeks, and the weekly benefit to eighty percent of an employee’s salary.  The bill has to be passed by the Legislature and signed by the Governor, but, if it is successfully passed, it will go into effect on July 1, 2017.

Stay tuned! We will keep you posted on any developments as this proposed change will impact almost all New Jersey employers.

Should you have any questions on this issue, please contact me at ptcollins@nmmlaw.com.