💲 Gov. Murphy wants to expand paid family leave
💲 State workers would get 100% pay for 12 weeks
💲 Heavy cost to taxpayers


Gov. Phil Murphy has counted on the support of public employee unions to advance his progressive agenda for the last seven years.

During his State of the State address on Tuesday, Murphy offered a parting gift to state workers in form of 12-weeks of fully paid family leave.

Tens of thousands of state workers would become eligible for up to 12-weeks of fully paid time off to care for a new baby. Currently, state workers can take up to 12-weeks at 85% of their full salary.

“This will ensure that these workers can continue earning a full salary while caring for a newborn during one of the most crucial stages of development,” Murphy told a joint session of the legislature.

The move was praised by CWA District 1 union Vice-President Dennis Trainor.

FILE - New Jersey Gov. Phil Murphy delivers his State of the State address to a joint session of the Legislature at the statehouse, in Trenton, N.J., Jan. 9, 2024. (AP Photo/Matt Rourke, File)
FILE - New Jersey Gov. Phil Murphy delivers his State of the State address to a joint session of the Legislature at the statehouse, in Trenton, N.J., Jan. 9, 2024. (AP Photo/Matt Rourke, File)
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“These types of initiatives are lower-cost, common sense ways that allow parents to spend important quality-time bonding with newborns without having to make the difficult choice of losing pay or going back to work,” Trainor said in a statement.

Under the governor’s proposal only employees with new children could take advantage of the enhanced benefit. Individuals who use family leave to care for a sick relative would see their pay capped at 85% or $1,081 per week.

How much will this cost taxpayers?

Typically, state employees take paid vacation days to cover maternity/paternity leave in order to receive a full salary.

Under Murphy’s plan, they would be able to retain their normal paid time off and still receive full pay under expanded paid family leave benefits.

The cost of the expanded benefit is estimated to be as high as $12 million per year.

NJ Department of Labor and Workforce Development
NJ Department of Labor and Workforce Development
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In order to fund the expanded benefits, Murphy would need to get legislative approval as part of the normal budget process.

Because it would be included as a budgeted item, and no codified by a separate law, it would be up to future governors and members of the legislature to decide each year if the expanded benefits would continue.

With New Jersey facing dire budget forecasts beginning with the fiscal 2026 year, funding for the program may be hard to come by.

A new standard for private businesses?

New Jersey has mandated paid family leave for all businesses with 30 or more employees since 2008.

Gov. Murphy and Democratic lawmakers have expanded the program from the original six weeks of paid leave to 12-weeks at 85% of an employees salary.

State law guarantees an employee can return to their job when the leave is over without penalty.

Photo: NJBIA
Photo: NJBIA
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The law was also expanded to include the care of a sick relative including: children, parents, spouses, domestic partners, civil union partners, siblings, grandparents, grandchildren, and parents-in-law.

Murphy and First Lady Tammy Murphy have said they hope private companies will adopt a policy of 100% salary reimbursement.

Business groups are wary of any policy that could further impact what is already a poor business climate in New Jersey.

New Jersey Business & Industry Association President and CEO Michele Siekerka said, “We need to see details and how it’s going to be paid for.”

Siekerka worries pro-business policies could be hurt by any additional spending.

“We also know this will be a challenging year for the governor’s final budget, based largely on gaps of unsustainable spending over revenue,” Siekerka said, “We continue to encourage that pro-growth spending for manufacturing, infrastructure, higher education and workforce development does not come up short during fiscal management this year.”

GOP proposal goes further

Assemblywoman Nancy Munoz, the Republican budget officer has introduced legislation that would go beyond what Murphy is proposing.

Munoz’ CRADLE act (A5208) proposes 24-weeks of paid leave at 100% of salary plus reduce payroll taxes for low- and middle-class families.

Photo by Assembly Republican Office/Jennifer Peacock.
Photo by Assembly Republican Office/Jennifer Peacock.
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“Every worker, every new parent, no matter your occupation, deserves paid leave to bond with a child, not just state workers,” Munoz said in a statement, “As a mother of five children and a nurse, I know how crucial those first months are for both the health of the baby and the well-being of the parents.”

Munoz says her bill “gives parents more time with their children and more financial support while taking less out of their paychecks” and says Murphy’s proposal “falls woefully short of what every New Jersey worker needs and deserves.”

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