Legislative leaders, progressive governor embracing costly labor mandates
Thank you to all of our New Jersey NFIB members who wrote almost 400 emails to their lawmakers to ask they vote NO on a paid leave bill. Despite that huge effort, state leaders and a governor intent on passing a series of labor mandates did succeed in passing the paid leave bill. Now that measure heads to Gov. Phil Murphy’s desk where he is expected to sign it into law.
NFIB worked very hard explaining to lawmakers that such a mandate will lead to fewer jobs, reduced hours and reductions in other benefits. While we were unable to kill the bill, we were able to work directly with the bill sponsors and convince them to make some amendments, mitigating the impact. The bill provides for full statewide preemption, preventing local governments from imposing stiffer leave ordinances. It allows employers to utilize their current Paid Time Off policies as long as they meet the minimum accrual rates. Another amendment caps the required annual amount of leave at 40 hours and does not require an employer to allow an employee to utilize leave time until 120 days after beginning employment.
One member emailed her lawmaker and said, “Forcing us to pay for sick leave will create a hardship for us and our employees. In order to keep payroll within our budget, we will have no choice but to cut hours, reduce raises, and decrease employee bonuses and regular vacation time.”
“There was an outpouring of concern from job creators across the state who see this legislation as harmful to their small business and their employees.” said the State Director of NFIB NJ, Laurie Ehlbeck. “We testified, and spoke directly with legislators to explain that a paid leave mandate creates additional labor costs that some businesses simply cannot afford.”
The owner of a metal supply company in the Brunswick area told his Senator, “If legislators were actually businessmen, they would understand. Unfortunately, most are completely out of touch with the thousands of small business owners like me and the challenges of opening, running, and maintaining a small business.”
A Cape May business owner said “As a seasonal business that hires high school and college students, this bill would wreak unintended and catastrophic results on businesses like mine. New Jersey has thousands of businesses that are seasonal and make their livelihoods in eight short weeks. This bill would create such a hardship for many of these businesses that it would put them out of business.”
The paid leave bill will impact businesses of every size. Full- and part-time employees could accrue up to 40 hours of paid leave. Workers could be able to take time off for themselves, immediate family, partners, extended family, an even to care for an unrelated person they designate.
