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'On May 2, 2008, Governor Corzine signed Assembly
Bill No. 873 , Family Leave Insurance (FLI), into law.
Family Leave Insurance Overview:
- Provides up to six weeks of FLI benefits for the care of a family
member suffering from a serious health condition, a newly born
child or a newly adopted child.
- Applies to all private and governmental employers subject to
the “Unemployment Compensation Law,” (R.S.43:21-1 et seq.), including
local governmental employees who choose to opt out of the regular
TDI program.
- Provides an assessment on employees beginning January 1, 2009,
to fund the FLI program.
- Provides the payment of FLI benefits beginning July1, 2009.
- Raises revenue to pay the FLI benefits through an assessment
on the worker’s wages beginning January 1, 2009. The worker FLI
rate for the calendar year of 2009 is 0.09%. The worker FLI rate
for calendar year 2010, and subsequent calendar years, will be
0.12 %. The worker FLI rate will be multiplied against the taxable
wages subject to the State FLI plan. You will report the taxable
wages subject to the state plan Family Leave Insurance (FLI) program
on the “Employer Quarterly Report,” NJ927. The worker contributions
for FLI will be remitted together with the other contributions
due on the NJ927/NJ927W.
- Provides small businesses, (50 or fewer employees), with the
option to replace employees receiving FLI benefits. Small businesses
do not have to hold jobs open and provisions in the law allow
small businesses, to fill a worker’s position with a permanent
replacement without running the risk of being sued.
- Requires the employee to give at least 30 days prior notice,
except when unforeseeable circumstances prevent prior notice,
for care of a child after birth or adoption. If FLI leave is for
the care for sick family members, the employee is required to
schedule, when possible, the leave in a manner to minimize disruption
of employer operations, and give, if possible 15 days prior notice
for leave which is intermittent.
- Increases the penalties for misrepresentations, fraud and other
violations regarding both the existing TDI program and the FLI
program to $250 per statement or non-disclosure
- Increases the penalties for other willful violations of the
TDI law or the bills to $500 and additional penalties for violations
with intent to defraud the program to not more than $1,000.
- Provides that employers would have the option of using the State-operated
plan or a private plan through self insurance or an insurance
policy, so long as the employees are not charged more, the benefits
are not lower and eligibility is not more restrictive than under
the State plan.
- Provides that private plans may cover TDI benefits, FLI benefits,
both or neither.
- Requires no changes in existing private plans.
- Employer
Requirements.
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