Family Leave Insurance Overview:

• Provides up to six weeks of FLI benefits for the care of a family member suffering from a serious health condition, a newly born child or a newly adopted child.
• Applies to all private and governmental employers subject to the “Unemployment Compensation Law,” (R.S.43:21-1 et seq.), including local governmental employees who choose to opt out of the regular TDI program.
• Provides an assessment on employees beginning January 1, 2009, to fund the FLI program.
• Provides the payment of FLI benefits beginning July1, 2009.
• Raises revenue to pay the FLI benefits through an assessment on the worker’s wages beginning January 1, 2009. The worker FLI rate for the calendar year of 2009 is 0.09%. The worker FLI rate for calendar year 2010, and subsequent calendar years, will be 0.12 %. The worker FLI rate will be multiplied against the taxable wages subject to the State FLI plan. You will report the taxable wages subject to the state plan Family Leave Insurance (FLI) program on the “Employer Quarterly Report,” NJ927.  The worker contributions for FLI will be remitted together with the other contributions due on the NJ927.
• Provides small businesses, (50 or fewer employees), with the option to replace employees receiving FLI benefits. Small businesses do not have to hold jobs open and provisions in the law allow small businesses, to fill a worker’s position with a permanent replacement without running the risk of being sued.
• Requires the employee to give at least 30 days prior notice, except when unforeseeable circumstances prevent prior notice, for care of a child after birth or adoption. If FLI leave is for the care for sick family members, the employee is required to schedule, when possible, the leave in a manner to minimize disruption of employer operations, and give, if possible 15 days prior notice for leave which is intermittent.
• Increases the penalties for misrepresentations, fraud and other violations regarding both the existing TDI program and the FLI program to $250 per statement or non-disclosure
• Increases the penalties for other willful violations of the TDI law or the bills to $500 and additional penalties for violations with intent to defraud the program to not more than $1,000.
• Provides that employers would have the option of using the State-operated plan or a private plan through self insurance or an insurance policy, so long as the employees are not charged more, the benefits are not lower and eligibility is not more restrictive than under the State plan.
• Provides that private plans may cover TDI benefits, FLI benefits, both or neither.
• Requires no changes in existing private plans.
• Employer Requirements.