National Benefit Life Insurance Company (NBL) is pleased to provide you with the basic information that you need to understand the New Jersey Paid Family Leave Law ("PFL").
NJ Paid Family Leave Act FAQs
1. What is Paid Family Leave?
A. On May 2, 2008, New Jersey Governor Corzine signed the Paid Family Leave Bill into law; making New Jersey the third state in the nation to provide paid family leave benefits. The law is effective January 1, 2009 but claims for benefits will not be accepted until July 1, 2009.
2. Which employers are covered?
A. All employers subject to the New Jersey State Unemployment Insurance Law, including state government sector employers, are required to provide PFL coverage. Unlike the Federal Family Medical Leave Act (FMLA), all employers who have at least one (1) employee and have paid at least $1000 in wages are covered.
3. Do employers need to enroll for coverage?
A. No. As of January 1, 2009 New Jersey employers will default to PFL coverage under the New Jersey State Plan.
4. How does this new Law work with Private Plan disability coverage through NBL?
A. There is no impact. Like Unemployment Insurance, the new PFL is a separate benefit and does not affect your disability coverage through NBL. An employer may have a private plan for TDB and the State Plan for PFL.
5. Isn’t it easier administratively to have both TDB and PFL with either the state plan
or private plan?
A. No. Because TDB and PFL are entirely separate benefits they will require separate contribution and claims reporting.
6. Which employees are eligible?
A. All employees who are eligible for TDB are also eligible for PFL coverage.
7. What is the criteria for an employee to claim PFL?
a. To care for and bond with a newborn or adopted child within 12 months of birth or placement
b. To care for a family member with a serious health condition. Note: See #13 Paid Family Leave Definitions.
8. What is the benefit?
a. 2/3 of the average wage during the eight weeks prior to the week the leave begins, to a maximum of $546 per week for claims incurred in 2009.
b. Benefits will be paid for the lesser of (a) up to 6 weeks (42 days) in a 52 week period: or (b) until benefits total 1/3 of base year earnings.
c. Benefits can also be paid intermittently to create flexibility in meeting the needs of both employees and employers.
d. Leaves related to birth or adoption must be taken as a single continuous period unless otherwise mutually agreed by employer and employee.
e. Leave taken to care for a seriously ill relative can be intermittent, subject to specified conditions
f. Benefits begin after a one week waiting period. The waiting period will be paid if benefits continue beyond three weeks. If the leave immediately follows a disability claim for the individual’s own illness, there is no waiting period for PFL.
Note: An employer may require that an employee utilize up to two weeks of available sick, vacation or other paid time off in connection with a period of PFL, leaving four weeks of paid leave available under PFL.
9. How is the PFL benefit funded?
A. The PFL benefit is funded entirely by employee contribution. Starting in January 1, 2009, employers should withhold an additional employee contribution of 0.09% of taxable wages, which totals just under $25 per year. In 2010 this will increase to 0.12% of taxable wages.
10. What are the employer’s obligations?
a. By December 15, 2008 employers must notify employees of their rights under this program by posting PR-2 (R11-08) notice from the New Jersey Department of Labor.
b. Employers must also provide a copy of the poster notice to an employee
i. Upon request
ii. At the time the employee is hired
iii. Whenever the employee is requesting time off for a qualifying reason
c. Effective January 1, 2009, employers must begin taking the additional employee contribution which will be reported on Form NJ927.
11. What are the employee’s obligations?
Employees must provide the following notice to the employer.
a. 30 days prior notice if leave is sought to care and bond with a child after birth or adoption.
b. Notice of leave in a "reasonable and practical" manner if leave is sought to care for a seriously ill family member, unless emergency or circumstances preclude prior notice;
c. If the leave is on an intermittent basis, 15 days notice to the employer.
Note: A formal appeal can be submitted to the Division of Temporary Disability Insurance if an employee or employer disagrees with a claim determination.
12. Can I add PFL coverage to my current National Benefit TDB Policy?
A. Not at this time. PFL is a separate benefit which requires a new PFL policy. NBL is awaiting confirmation from the New Jersey Dept. of Labor of all regulations governing this new benefit, due out sometime in 2009. At that time NBL will file the required policy forms and contracts with New Jersey State regulators and expect to offer this benefit in 2010.
13. Paid Family Leave Definitions
a. Family member" - spouse, civil union partner, domestic partner, parent or child.
b. "Parent" - biological, adopted, foster, step, legal guardian.
c. "Child" - biological, adopted, foster, step, legal ward, child of a covered individual or of a domestic partner or civil union partner, who is under 19; or over 19 but incapable of self care because of mental or physical impairment.
d. "Care" - physical care, emotional support, visitation, assistance in treatment, transportation, arranging for a change in care, assistance with essential daily living matters and personal attendant services.
e. "Serious Health Conditions" - illness, injury, impairment or physical or mental condition which requires (1) inpatient care in a hospital, hospice, or residential medical care facility or (2) continuing medical treatment or continuing supervision by a health care provider.
NJ Paid Family Leave Act Brochure
NJ Paid Family Leave Act Poster PR-2 (R11-08)
