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Client Alert - Summer 2008

New Jersey to offer paid family leave


by Rick Vernal, CPA

Governor Corzine recently signed into law a paid family leave program for employees in the State of New Jersey. Employees will become eligible for the new benefit beginning July 1, 2009. Paid family leave provides workers with up to six weeks of partial wage replacement (during any 12 month period) to care for a newborn or adopted child, or to provide care for a seriously ill family member. The paid family leave benefit will be similar to the State's current Temporary Disability Insurance benefit, which provides two-thirds of an employees wages up to $524 per week. The maximum benefit amount will be adjusted every year. All full-time and part-time employees will be eligible for the paid family leave benefit provided they meet the minimum earning amounts of $143 or more per week for 20 consecutive weeks or $7,200 or more over the previous 52 calendar weeks. Employees must satisfy a one week waiting period before benefits begin.

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