Legislation expanding New Jersey’s paid Family Leave job protection to employers with 15 or more workers has passed the Assembly and is awaiting action by the governor. The bill lowers the current threshold from 30 employees, a move opposed by the New Jersey Business & Industry Association (NJBIA).
“Unfortunately, this bill is another classic example of Trenton being tone deaf to the concerns of our smallest employers,” said NJBIA Chief Government Affairs Officer Christopher Emigholz after the Assembly voted 46-25 in favor.
Emigholz stated that, “The 30-employee threshold in the law now was the product of a thoughtful compromise between a Democratic governor and a Democratic-controlled Legislature that balanced worker protections with the operational realities of small employers. This legislation would undo that balance and remove the flexibility that small businesses need to survive.”
He noted that when one employee at a business with 15 staff takes paid family leave, it represents about 7% of its workforce for up to 12 weeks. Unlike larger firms, smaller companies may have difficulty shifting duties and might need to hire and train replacements.
Emigholz also pointed out that New Jersey is one of only 15 states offering paid family leave, and among just 11 requiring employers to reinstate workers returning from up to 12 weeks of leave. He argued that further expansion would increase New Jersey’s distinction as an outlier among states on this issue.
The original version of the legislation proposed lowering the threshold to five employees. Following opposition from NJBIA and other business groups, amendments set it at 15.
“While a threshold of 15 employees is better than five, 15 still sweeps up too many small businesses that will have to comply with this onerous new mandate,” Emigholz said.
The NJBIA describes itself as representing private-sector employers throughout New Jersey across sectors such as manufacturing, retail, wholesale, contracting, and services. The association provides advocacy and information for its members while encouraging collaboration among businesses, government agencies, and academic institutions. According to its official website, it operates as the largest statewide employer association in the United States.
Michele Siekerka serves as president and chief executive officer of NJBIA according to their official website.
