New Jersey expands paid family leave

Parents in New Jersey will soon get more money and more time for parental leave after welcoming a baby.

This week New Jersey Governor Phil Murphy signed off on legislation that extends New Jersey’s paid family leave from six weeks to 12.

It also increases the benefit cap from 53% of the average weekly wage to 70%, meaning the maximum benefit for a parent on family leave will be $860 a week, up from $650.

It might not seem like a huge difference, but by raising the benefit from two-thirds of a parent’s pay to 85%, lawmakers in New Jersey are hoping to encourage more parents to actually take leave, which is good for the parents, their baby and their family. “Especially for that new mom and dad, we know that more time spent bonding with a child can lead to a better long-term outcome for that child,” Murphy said at a press conference this week.

The law will also make it easier for people to take time off when a family member is sick.

Because NJ’s paid leave is funded through payroll deductions, workers could see an increase in those deductions, but Murphy is betting that workers and businesses will see the benefits in increasing paid leave benefits. “Morale goes up, productivity goes up, and more money goes into the system,” Murphy said. “And increasingly, companies big and small realize that a happy workforce and a secure workforce is a key ingredient to their success.”

The new benefits will go into effect in July 2020 (making next Halloween a good time to get pregnant in the Garden State).

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