Today, New Jersey employers have new requirements to contend with as the state becomes the nation's third to institute paid family leave. Leave policies must be reassessed and changes made to comply with the new law.

Gov. Jon S. Corzine today signed a bill that provides up to six weeks of paid leave to care for a new child or a seriously ill family member. The law takes effect January 1, 2009.

The leave program will be financed through the state's Temporary Disability Insurance (TDI), which is paid for by employees through payroll deductions. It applies to any public or private employer subject to New Jersey's unemployment compensation law.

Most businesses opposed the legislation. They see the additional payroll deduction as another tax that will make it tougher for them to attract talent. Business lobbyists have also expressed concern that the program will be under-funded and that employers will be forced to cover any shortfalls.

If you want to know more about how this law will affect your organization, call Ballard Spahr. Our Labor, Employment and Immigration lawyers can help you navigate the new law and coordinate your leave policies to manage the effects of paid leave.


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