Full Breakdown
New Jersey Expands Paid Family Leave for Small Businesses
1/15/2026, 1:32:24 AM
Legislative Approval of Paid Family Leave Bill
New Jersey Senate lawmakers recently approved legislation aimed at expanding paid family leave and temporary disability benefits to employees at smaller companies. The bill, which passed in a 24-12 vote, allows workers at firms with as few as 15 employees to take job-protected paid family leave. Currently, New Jersey law permits up to 12 weeks of paid family leave, enabling workers to bond with new children or care for sick relatives. Under the new legislation, the eligibility criteria would be significantly relaxed, reducing the required duration of employment from 12 months to six months and the hours worked from 1,000 to 500.
Senator Paul Moriarty (D-Gloucester), a sponsor of the bill, emphasized that it aims to ensure that most New Jersey workers, regardless of their employer's size, have access to family leave protections. Senator Andrew Zwicker (D-Middlesex) echoed this sentiment, stating that the bill seeks to close the gap for low-wage, part-time, and caregiving workers often employed by smaller businesses.
Funding and Protections
The benefits under the proposed law would be funded by a 0.28% payroll tax on worker income, applicable up to a wage cap of $138,200. The legislation also reinforces protections against employer retaliation for utilizing family leave benefits, ensuring that workers can return to their previous positions or equivalent roles upon their return.
Opposition from Business Groups
Despite the bill's support, it has faced criticism from business groups. Chris Emigholz, chief government affairs officer for the New Jersey Business and Industry Association, expressed concerns that expanding family leave eligibility could hinder the competitiveness of small businesses in New Jersey. He noted that only seven states currently provide job protections for workers at firms with as few as 15 employees, suggesting that New Jersey would be placing its smaller employers in a unique and potentially disadvantageous position.
Broader Legislative Context
The paid family leave bill is part of a broader legislative agenda in New Jersey, which also includes significant corporate tax breaks and regulations on intoxicating hemp products. Lawmakers recently approved a plan to expand corporate tax breaks by nearly $3 billion, including up to $300 million in new subsidies for Newark's Prudential Center. Critics of these subsidies argue that they represent corporate giveaways at a time when fiscal responsibility is crucial.
Verbatim Quotes
- “This bill would ensure that the vast majority of New Jersey workers are entitled to family leave protections, whether they work for a huge corporation or a small business,” — Senator Paul Moriarty (D-Gloucester)
- “In other words, New Jersey would be placing its smallest employers into a narrow national category — an outlier beyond most states we directly compete with for jobs and investment,” — Chris Emigholz, Chief Government Affairs Officer, New Jersey Business and Industry Association
What's Next
The bill now awaits the governor's signature to become law, which would significantly alter the landscape of family leave in New Jersey, potentially impacting approximately 1.7 million additional workers who are currently not covered under the state's family leave law.
