MASSACHUSETTS should keep an eye on New Jersey and its plan to offer workers six weeks of paid family leave. It's a promising idea that could modernize the workplace.
New Jersey Governor Jon Corzine says he plans to sign the recently passed bill, which will make his the third state with a paid leave law. California started its paid leave benefit in 2004, and Washington is slated to launch paid leave next year.
In 2006, the Massachusetts Senate considered a bill that would have created a 12-week paid leave benefit offering full pay, up to $750 a week. It would have been funded by workers through payroll deductions. But the bill didn't pass. Despite the benefits for workers, opposition to paid leave is fierce.
Indeed, the New Jersey Chamber of Commerce issued a statement last year declaring that "it makes no sense to make New Jersey a paid leave guinea pig for the rest of the nation." The group feared that the bill's six weeks of paid leave in any given year would be costly for businesses. Now the chamber is asking its members to call Corzine and tell him not to sign the bill.
That would be a mistake. Changing demographics have created an acute need for paid leave. Because more women work, they are not as available as they were decades ago to care for sick children and aging parents. And as the population ages, people with debilitating or terminal illnesses often need the assistance of their adult working children. People shouldn't have to choose between paying bills and caring for gravely ill or dying loved ones. And the paid leave is less costly to society than one likely alternative: institutional care.
Under the federal Family and Medical Leave Act, workers in companies with 50 or more employees can already take unpaid leave without jeopardizing employment. The law grants workers up to 12 weeks to care for themselves, a new child, or a seriously ill family member. But unpaid leave only helps those who can forego the salary.
New Jersey's plan is to offer the six weeks of leave at two-thirds salary, up to $524 a week. Workers would pay for the program through a mandatory payroll tax that would average $33 per year. Employers can require workers to use some of their workplace leave before claiming the state benefit. And companies with fewer than 50 employees would not be obligated to hold jobs open for those who took the leave.
To make its program work, New Jersey will have to be a hawk, ensuring that the program is financially sound and cracking down on fraud and abuse. But the real test will be how well New Jersey workers are able to manage amid the clashing demands of giving care and going to work.
