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Voice opposition to paid family leave tax This holiday season, it appears both employers and employees in New Jersey will find a lump of coal in their stockings, thanks to a legislative proposal with a wonderful sounding name- paid family leave.
The supporters of this legislation claim it will be a cure-all for New Jersey families, providing a low-cost option for those who need to spend time with family in crisis situations. The definition of crisis in this case is so broadly interpreted, that emotional stress is enough to trigger the leave. If passed, this initiative will create problems for those who don't take the leave and their employers who struggle to remain competitive.
When someone takes paid leave, the reality of the situation is that the workload doesn't change. In this market it is unlikely that a qualified replacement, willing to take a job for a few weeks or months, can be found. Without someone to fill the position, those left at work will have to step up production or work longer hours to compensate for themissing worker. How ironic that a bill heralded as something to help families will actually increase the demands placed on others, keeping them from their families.
The problems created for the employer community are even greater. Running a business is difficult enough without having the state step in with a one-sizefits all benefit package. How can a small business person be expected to balance a leave program that allows significant amounts of time to be taken on short notice? And what about those industries that require a license or a background check for employees, like emergency rooms, insurance agencies or casinos? And here's the kicker - employers who are able already provide this benefit, without government mandate, in their efforts to maintain a quality workforce in a competitive environment.
Employers and employees together should voice their opposition to this new tax and ask their elected officials to oppose paid leave legislation. For the employer, it's an issue for collective bargaining; for the employee, it's a tax on wages that may well result in increased demands in the workplace. If you enjoy the benefits of the high wages paid by New Jersey's globally competitive companies, this one is not for you.
Joan Verplanck
President New Jersey Chamber
of Commerce
Trenton
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