New Jersey’s 12-week paid family leave program is still largely unknown and suffers from some bureaucratic hurdles and resistance from employers that make participation difficult, according to a Rutgers analysis of the law.
The Rutgers Center for Women and Work praised the generosity of the program, which nearly 18 months ago was expanded from offering six weeks to 12 weeks of cash benefits. The number of caregivers who can participate was also expanded.
But the center concluded too many workers and employers remain unaware of the program’s existence, payments are often delayed and the application process is cumbersome.
“New Jersey is a national leader in policies that support working families, but our paid family leave program is still a work in progress,” said Debra Lancaster, executive director of the Rutgers Center for Women and Work, which wrote the report with support of the Robert Wood Johnson Foundation. “When workers don’t know the program exists, or they have trouble applying, or the payments take too long to arrive, then clearly we have work to do.”
In the first 11 months of this year, 56,447 families used the paid leave program, Department of Labor and Workforce Development spokeswoman Angela Delli-Santi said.
In 2019, Gov. Phil Murphy signed a bill into law expanding the 2009 program, doubling its duration and allowing participants to collect 85% of their weekly pay, capped at $903 a week. Workers caring for a new baby, a new foster or adopted child, or a sick family member are eligible, according to the state Department of Labor and Workforce Development website.
Despite the generous benefits, only 53 percent of New Jersey residents said they were aware a state paid family leave law, according to a yet-to-be-released poll by the Eagleton Institute for Politics and the Heldrich Center for Workforce Development. Only 43% of residents earning under $100,000 said they knew about the law, compared to 65% earning $100,000 or more, the poll said.
Not all employers understand or appreciate the importance of paid family leave assistance, the report said. People interviewed for the report said they feared retaliation.
“Even though the FLI program is gender neutral in the way that any employee can take leave for bonding or for caring for a family member, participants acknowledged than men encounter more hostility in the workplace when it comes to requesting leave, sometimes from management, but also from peers,” the report said.
The payments can take weeks and months to arrive, the report said. The state runs its computerized programs using a late 1980s mainframe, and while the Murphy administration is seeking upgrades, changes must be made to speed the process before that happens, the report said.
“Family leave insurance has the potential to make New Jersey a healthier and more equitable state,” said Maisha Simmons, director of New Jersey grant making at the Robert Wood Johnson Foundation. “This report shows the way for this well-intentioned program to reach that potential.”
Delli-Santi, the state spokeswoman, said the state has been making steady improvements, by assigning a team to modernize the technology and another team to promote the program. They’ve also developed an employer toolkit, and “engaged in a multi-lingual awareness campaign,” Delli-Santi said.
The vast majority of claims, 96%, are paid within 28 days, with “the main reason a claim is delayed is due to a lag time in receiving required records from medical providers,” she said.
The department also has been dealing with a 25% rise in temporary disability claims, most related to COVID-19, she said.
“The programs have seen renewed commitment under the Murphy Administration, and the New Jersey Department of Labor and Workforce Development, which administers the program has taken several steps to make it easier to access these benefits,” Delli-Santi said.
The report acknowledged the efforts, noting “the current Department of Labor staff and leadership have demonstrated that they are committed to improving the program’s administration.”
“New Jersey’s achievement in establishing a paid family and medical leave policy continues to serve as a model to other states and to the nation,” the report said, in a nod to the ongoing discussions in Washington D.C. over Biden’s stalled American Families Plan.
But challenges remain.
“Workers and employers continue to have uneven experiences navigating the requirements of the program,” the report said. “Administrative barriers include delayed payments, rejected applications, waiting for medical doctors to complete paperwork, and confusion regarding how to complete several questions on the online application. Even the most supportive employers indicated they find managing leave-taking and helping their employees through the process somewhat overwhelming. Others were unaware of the expansion that went into effect in July 2020.”
The program is paid for by payroll deductions. This year, workers will contribute 0.28% on the first $138,200 of their earnings, for a maximum deduction of $386.96. Next year, the deduction drops to 0.14% per pay check for people earning as much as $151,900, for a maximum deduction of $212.66, according to the state website.
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