New Jersey Paid Family Leave Begins and Impacts All Businesses Regardless of Size

On July 1, New Jersey became only the second state in the nation to impose a paid family leave mandate on all businesses. Under the law, all companies, even those with just one employee, must allow employees to take up to six weeks of paid time off to care for a newborn or a sick relative. Unlike State and federal unpaid leave laws, which exempt companies with fewer than 50 employees, there is no small business exemption for paid family leave.Employers may require employees to substitute two weeks of paid vacation and sick leave for the paid family leave, thus reducing it to four weeks. There is also a one-week waiting period for many employees who wish to receive benefits. Employees are eligible for up to two-thirds of their wages, with a maximum of $546 per week. Employers with one to 49 employees are not required to hold open the job for the employee who is taking leave under the paid family leave statute, but could face legal liability for discrimination under other federal and State laws.

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