The Garden State joined California and Washington, D.C. in requiring businesses to provide eligible workers with paid leave for up to six weeks per year to care for a new child, sick relative, or to deal with a personal health crisis. New Jersey voted 21 to 15 to approve the Democratic plan, which will soon be signed by Democratic Governor Jon S. Corzine.
Paid Family Leave Insurance is a component of disability insurance paid for by workers via a mandatory payroll deduction, which is estimated to run about $30 per year in New Jersey. Employees who go on leave would receive two-thirds of their salary.
Many more states are considering plans this year to offer paid family leave, including Alaska, Arizona, Connecticut, Hawaii, Illinois, Indiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, New York, North Carolina, and Pennsylvania.
While paid leave is funded by employees, critics from companies fearing its abuse are raising their voices: They contend that withholding money acts as a deterrent to taking time off, while paying for down time turns workers' absences into vacations. If businesses cry loud enough, paid sick leave may go down in some states.
On the flip side of the controversy, supporters of paid leave say that it promotes productivity (sick employees spread sickness on the job) and reduces turnover. California's experience reflects that philosophy: Only about 1 percent of eligible workers took paid leave in the first year of the program.
At the Federal level, The Family and Medical Leave Act of 1993, which provides employees 12 weeks of unpaid leave each year to care for new children and seriously ill relatives, or to deal with their personal health problems, may be augmented by new legislation after the November elections. Democrats are pushing for a law that provides up to seven days of paid leave.
Links:
[1] http://businessfinancemag.com/blog/brannen-brief-1212