Payroll deductions take effect to fund new family leave law

Employee paychecks will be almost a dollar thinner with the start of the new year, but some workers may well applaud the increase in six months if they need time off to care for a loved one.

Under the paid family leave law enacted by New Jersey last year, employee payroll deductions to fund the measure began with the new year, but employees will not be entitled to take any leaves until July 1.

New Jersey became the third state to offer paid leave, overcoming the objections from opponents in the business community who argued it would be an unfair burden for employers.

"We've been opposed to it since it was first proposed 12 years ago," said Jim Leonard, senior vice president of the state Chamber of Commerce.

"It's unfortunate because we're in a bad economy and the state is doing all it can to encourage businesses to stay," he said. "This just sends a mixed message."

Under the measure, employees are entitled to take up to six weeks off to care for a newborn or newly adopted child, or a sick parent, spouse or child. They would be able to collect up to two-thirds of their pay to a maximum of $524 per week.

The benefit will be funded by worker contributions estimated at about $33 a year through the mandatory payroll tax employers had to begin collecting Jan. 1.

Leonard said the measure would be most onerous for small businesses, which can least afford to lose an employee and have to replace and train a new one. He also said they would face the burden of having to keep track of the leave time.

"It's all new to the small-business person," he said. "It would be an administrative burden because you have to keep track of it down to a half of a day."

The paid employee leave bill was amended several times before final passage, with one significant change enhancing the fine from $250 to $1,000 for employees who try to abuse the benefit.