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LettersMarch 27, 2008 


Proposed paid leave program based on unrealistic stats
Since New Jersey workers will be picking up the tab for the state's proposed paid leave program, they should know that legislators may be basing their vote on statistics that aren't realistic. This miscalculation will force every worker in N.J. to pay higher taxes. Why is that?

The Department of Labor has estimated that 38,000 people will use paid leave in the first year, based on California numbers. It would make more sense to calculate the use rate based on New Jersey data. On average, 29,000 women - not dads, not adoptive parents - receive maternity leave benefits under our current temporary

disability insurance (TDI) coverage. Populations not covered

by TDI benefits and who probably account for a sizeable number of those who actually gave birth (114,000) versus those who took the benefit (29,000) will be eligible for paid leave. If even half of these people take the benefit, the use rate swells by another 42,000.

The new paid leave bill extends beyond our tradition of supporting mothers to include dads, adoptive parents, caregivers for immediate family members and possibly even folks who are sick and have exhausted other benefits.

Cost to workers is estimated at $33 per year based on 38,000 people using the benefit. However, the actual amount could be closer to $250 per year if, once expanded the use rate comes closer to the private sector experience of 8 percent. This is quite a difference, considering how important every dollar in your paycheck is these days. With a recession looming, why would we even consider taking more money out of people's paychecks?

Joan Verplanck

President NJ Chamber of Commerce

Trenton