The New Jersey Assembly has passed legislation that would expand the paid Family Leave law’s job protection requirement to employers with 15 or more workers, lowering the current threshold from 30 employees. The measure, which now goes to the governor, was 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 Christopher Emigholz, NJBIA Chief Government Affairs Officer, after the Assembly voted 46-25 in favor of the bill.
Emigholz explained that the existing 30-employee threshold resulted from a compromise between state leaders that balanced worker protections with small business needs. “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,” he said. “This legislation would undo that balance and remove the flexibility that small businesses need to survive.”
He noted that for a business with 15 employees, losing one person to family leave means about 7% of its workforce is absent for up to 12 weeks. Unlike larger companies, smaller firms may have difficulty shifting duties and might need to hire and train replacements.
According to Emigholz, New Jersey is among only 15 states offering paid family leave and one of just 11 requiring employers to reinstate workers after a paid 12-week absence. He argued that expanding these requirements could reinforce perceptions of New Jersey as unfriendly to business.
The original proposal aimed to lower the job protection threshold from 30 employees down to five. After opposition from NJBIA and other business groups, lawmakers amended it so it would apply instead to businesses with at least 15 employees.
“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.
NJBIA represents private-sector employers across manufacturing, retail, wholesale, contracting, and service industries throughout New Jersey. It describes itself as promoting business success by providing information and services for its members and serving as an advocate for employer interests statewide (official website, official website). The association also facilitates partnerships among businesses, government agencies, and academic institutions (official website).
Michele Siekerka serves as president and chief executive officer of NJBIA (official website). The organization’s headquarters are located in Trenton (official website).
