Paid family leave benefits just got more generous in N.J. Here are the details. (2024)

A big expansion of New Jersey’s paid family leave takes effect Wednesday, boosting benefits and doubling eligibility to 12 weeks.

The program’s facelift, signed into law last year, has been heralded by progressive advocates, who say its low payouts still made taking time away from work prohibitive for many low- and middle-income families. Beginning Wednesday, New Jersey workers can take off more time to care for a new child or sick relative and also receive thousands of dollars more in replaced wages.

Eligible workers can now collect 85% of their weekly pay, up to $881, for 12 weeks. That’s up from six weeks of benefits equal to two-thirds of their pay, capped at $650 a week. That means instead of receiving a maximum of $3,900 over six weeks, applicants will be eligible for as much as $10,572 over 12 weeks.

“It’s about equity for lower-income workers who couldn’t afford to take it at 66%. The 85% will absolutely make it more possible for them to take that time off,” said Yarrow Willman-Cole, workplace justice director for New Jersey Citizen Action.

“The increased time and duration is really important for those new mothers and fathers, because there’s a lot of research that is really revealing the importance of parents being able to spend significant amount of time with their new babies in those early months, in terms of their long-term health and development,” she said.

The new formula for calculating benefits and $881 cap also apply to the temporary disability program, which acts like state-run short-term disability for New Jersey workers who cannot work because of an illness, injury, pregnancy or some other disability that is not work-related. Family leave insurance, meanwhile, pays benefits to new parents taking time off work to bond with a child or to a worker who is caring for a seriously ill family member.

In 2009, New Jersey became one of the first states to offer paid family leave. But in recent years, researchers have found that too few workers knew the benefits were even available and the reimbursements needed to be raised to boost enrollment. A 2017 study found just 12 percent of New Jersey’s eligible new parents were receiving family leave benefits.

The same law boosting benefits also expanded the definition of family for workers who are caring for a sick loved one to include adult children, parents-in-law, siblings, grandparents, grandchildren, domestic partners, any blood relative and anyone you consider to be like family. Previously, only children, parents, spouses, domestic partners and civil union partners were eligible.

“For working families, the temporary loss of a paycheck based on the need to care for a loved one or after welcoming a new family member can be a daunting and stress-inducing financial decision,” said Gov. Phil Murphy, who signed the changes into law in 2019. “By providing the most expansive paid family leave time and benefits in the nation, we are ensuring that New Jerseyans will no longer face such a burden.”

Paid family leave is funded solely by New Jersey workers through a payroll deduction, while both employees and employers contribute to the temporary disability insurance program.

The expansions come at a cost, with people who are higher paid contributing more.

Since Jan. 1 workers have been paying 0.16% on their first $134,900 in income for family leave insurance. That comes to $55.04 for someone earning $34,400 a year, $96 for someone making $60,000, and $215.84 for anyone earning at least $134,900. Last year, workers paid no more than $27.52.

The payroll deduction for temporary disability insurance increased to 0.26% on their first $134,900, amounting to $89.44 for a worker making $34,400 and $156 for someone making $60,000. A worker making $134,900 or more will kick in $350.74.

For the two programs combined, 2019′s payroll deduction was capped at $86, but this year someone might kick in as much as as $567 from their paychecks.

The employer contribution to temporary disability did not increase to pay for the program changes.

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Samantha Marcus may be reached at smarcus@njadvancemedia.com.