NJBIA's Weekly Newsletter Print It 
  Issue Date: Friday, October 23, 2006
  Costly Paid Leave Bill Would Cause Hardship for Employers

State Senator Stephen Sweeney, chairman of the Senate Labor Committee, introduced legislation October 16 that would impose a 12-week paid family leave mandate on businesses with as few as two employees. The bill, S-2249, would fund the leave out of the existing Temporary Disability Insurance (TDI) program to pay employees to take up to 12 weeks off to be with a family member. Employers would be prohibited from requiring employees to use more than two weeks of any employer-provided time off, such as sick days or vacation. The measure has been referred to the Senate Labor Committee that Sweeney chairs.

Enactment of a paid family leave mandate would be devastating to businesses, small and large. Even under the existing unpaid leave laws, businesses with fewer than 50 employees are exempt because policymakers recognized that an employer cannot operate if key people are out for 12 weeks. Under this bill, tens of thousands of small businesses that had never been forced to deal with unpaid leave would suddenly have to face the prospects of a full-fledged paid family leave act. All businesses would have to pay overtime and hire expensive temporary employees, and they could pay higher temporary disability insurance (TDI) payroll taxes. The time needed to train temporary workers and the drop-off in effectiveness compared to regular workers would lead to a tremendous drop in productivity.

NJBIA strongly opposes any State-mandated paid leave program. Imposing such a broad mandate on each and every employer in the State would create an enormous hardship. Many employers have generous leave policies for employees, but carefully tailor them to fit the particular needs of their workplace. A one-size-fits-all mandate would be a costly disaster and should be rejected outright.

Furthermore, enactment of a paid family leave mandate would make New Jersey only the second State in the nation that has paid family leave (the other being California), putting our companies at a competitive disadvantage and reaffirming New Jersey’s reputation as an anti-business state. For more information, contact John Rogers at ext. 209.

NJBIA Calls on Board of Public Utilities to Streamline Telecommunications RulesNew Jersey’s Board of Public Utilities (BPU) should follow the lead of other states and streamline telecommunications regulations in order to spur competition, increase investment in New Jersey and stimulate job growth, NJBIA said at a public hearing on October 17. NJBIA Assistant Vice President Sara Bluhm pointed out that the State’s telecommunications industry lost 26,000 jobs between 1990 and 2004. During the same period, New Jersey’s share of the nation’s telecommunications jobs was cut nearly in half (from 7.8 percent in 1990 to 4.7 percent in 2004).

Of particular concern are the rules and restrictions that apply only to so-called “wire-line” carriers—the traditional phone companies that have been regulated by the BPU since the days of telephone service monopolies. Wireless phone companies, Internet phone service providers and cable television companies that provide phone service do not have to abide by the same set of rules. This puts the wire-line carriers at a competitive disadvantage. Twenty-one other states have already streamlined their regulations.

To rectify this problem, NJBIA is urging the BPU to:

• level the playing field by giving wire-line carriers the same regulatory flexibility that cable, wireless, Internet and other intermodal phone service providers enjoy;
• eliminate or streamline costly measurement and reporting requirements;
• change rules to focus solely on willful or knowing violations and eliminate any automatic penalties; and
• discontinue unnecessary operator services and numbering rules.

For more information, contact Sara Bluhm at ext. 204.

NJBIA Urges “No” Vote on Constitutional ConventionA constitutional convention to reform New Jersey’s costly property tax system would fail because it would be dominated by special interests with a vested interest in keeping costs high, NJBIA told the Joint Legislative Committee on Constitutional Reform on October 19. NJBIA First Vice President Arthur Maurice testified that the constitutional convention legislation passed by the Assembly prohibited the convention from dealing with the issue of spending reductions, which is the key to property tax reform. Instead, legislators should deal directly with the issue, having studied every aspect of property tax reform during an eight-week period that is coming to an end. For more information, contact Art Maurice at ext. 247.

November 3 Seminar: Selling to the Top: Doing Business with Top NJ Companies and State GovernmentFind out how you can sell your goods or services to State government and top New Jersey companies at this half-day seminar. Get practical tips from purchasing agents. Government officials will tell you how to become a certified minority- or women-owned business; you will also be able to register as a qualified business on the spot. The event will be held from 8:00 a.m. until 12:30 p.m. at the Sheraton Newark Airport Hotel (Exit 14 off the NJ Turnpike). The cost is $109 per person for NJBIA members and $139 for nonmembers. Register online now, or call Katie Wittkamp at 609-393-7707, ext. 239. To become a high-profile sponsor, call Sherry Esteves, ext. 219.

November 15 Seminar: How to Comply with State Environmental RegulationsIf you fail to comply with New Jersey’s strict environmental regulations or if you fail to get a needed permit, your business could be hit with a costly fine or even litigation. Let NJBIA help you stay out of trouble with this half-day seminar. The program, which will be held at the Forsgate Country Club in Monroe Township (Exit 8A off the NJ Turnpike), begins at 8:00 a.m. and ends at 12:45 p.m. The cost per person is $109 for NJBIA members and $139 for nonmembers. For additional information, call Alex Hollywood at 609-393-7707, ext. 262, or register online now. To become a high-profile sponsor, call Sherry Esteves, ext. 219.

December 12: Public Policy ForumThis annual high-level conference brings together New Jersey’s top leaders in business and government for a thorough and lively discussion of current issues that have a great impact on New Jersey employers. Governor Jon Corzine will be our keynote speaker, and will be joined by four of the State’s top legislative leaders, seasoned political observers and experts on the New Jersey economy. Don’t miss this great opportunity to network with fellow business colleagues!

The event will be held from 7:45 a.m. until 2:00 p.m. at the Sheraton at Woodbridge Place in Iselin (Exit 131A, Garden State Parkway). The cost is $170 per person for NJBIA members and $230 for nonmembers. Breakfast and lunch are included. To register, contact Stacy Wichner at 609-393-7707, ext. 213, or register online now. Gain high profile exposure by becoming a sponsor; contact Sherry Esteves, ext. 219.

Raise Your Visibility. Become an Event Sponsor—The Awards for Excellence Dinner. NJBIA's Public Policy Forum. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. Learn more about becoming an NJBIA sponsor by contacting Sherry Esteves at 609-393-7707, ext. 219.

New Jersey Business & Industry Association
102 West State Street
Trenton, NJ 08608-1199
609-393-7707

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