Paid Family and Medical Leave (PFML) laws are expanding in states across the country. The federal Family and Medical Leave Act (FMLA) of 1993 guarantees eligible employees up to 12 weeks of leave without the threat of losing their benefits or their job. But the FMLA’s protection is limited: it assures only unpaid leave, which many workers can’t afford, and applies only to businesses with 50 or more employees.
New Jersey Family Leave Insurance (NJ FLI) was signed into law in 2008 extending the benefits of New Jersey Temporary Disability Insurance (TDI.) A major amendment was signed into law in February 2019, affecting both FLI and TDI benefits, for both state and private plans.
These changes redefine who is eligible; increase the payout from the state program and, in many cases, double the amount of time away from work to which an employee is entitled. Employers are likely to have to withhold more money from employees’ paychecks to help fund these increased benefits.
Knowing how to effectively comply with shifting mandated requirements may feel overwhelming. But we are here to help.
This is an ongoing series of updates on Paid Family and Medical Leave developments – so you can be prepared to fulfill all mandated requirements. This release features highlights for the state of New Jersey, which just revamped its paid leave program.
With a few exceptions, all employers are required to participate in the state program (by default), or choose to opt out of the state program via a state-approved private plan. The private plan can be either employer-funded or fully insured by an approved carrier. Almost all employees are eligible to receive benefits.
Here’s what you need to know about the changes to NJ FLI and NJ TDI – referred to as Temporary Disability Benefits (NJ TDB) in the private sector.