More than 45 business owners and executives blasted legislation that would impose a 12-week paid family leave mandate on all businesses during a February 5 Senate Labor Committee meeting in Trenton. Among those who joined NJBIA President Philip Kirschner to testify against the bill were: Joe Teti, president of Triangle Art in Lawrenceville; Joe Kelly, president of the Atlantic City Regional Mainland Chamber of Commerce; and Lori Anne Oliwa, a vice president with the New Jersey Association of Women Business Owners (NJAWBO). The committee cut off testimony before all of the businesses could be heard, but did allow them to submit written statements.

Despite the broad opposition to the bill, committee members voted 3 to 1 to release it, with Senator Robert Littell providing the lone “no” vote. The measure, S-2249 (Sweeney, Buono), is now awaiting action in the Senate Budget and Appropriations Committee.

Under the bill, employees would receive up to $502 per week for 12 weeks in temporary disability benefits. Employers could not require employees to use more than two weeks of their paid sick or vacation time first. Unlike the existing State and federal unpaid family leave laws that apply only to companies with 50 or more employees, this paid family leave bill would apply to hundreds of thousands of small businesses throughout the State. There is no small business exemption!

Kirschner told the committee that such a mandate would be unworkable for the State’s employers. "The State should give its employers some credit," he said. "Businesses work with their employees to balance work and family life. However, employers need the flexibility to operate their workplaces. A one-size-fits-all mandate does not take into account the differences between the small bakery, medium-sized manufacturer, or large hospital."

Kelly pointed out that unlike the existing unpaid leave laws already on the books, small businesses would not be exempt from paid family leave. Existing leave laws only apply to companies with 50 or more employees. "These bills will be an administrative nightmare for small employers," Kelly explained. "The cost of increased overtime and hiring temporary workers will hurt small businesses. Additionally, productivity will fall."

Oliwa added that being without key employees for as long as three months puts an additional burden on the workers who are still there and could force some of the State's smallest businesses to shut down altogether. "Requiring other employees to absorb the extra work only works if there are additional employees to rely on," Oliwa said. "Many of the businesses I represent have only one, two or three employees, and this legislation would devastate their operations, maybe even force some completely out of business."

Finally, Teti pointed out that the bill would add to New Jersey’s reputation as an anti-business state and hurt an already sluggish State economy. "The evidence of economic malaise is all around us, yet we keep our heads buried in the sand and continue to make the mistakes that got us in this mess."

Many more employers who could not be at the committee hearing got their message across by e-mail. Responding to an NJBIA Alert on the bill, NJBIA members sent 5,000 messages to the legislative leaders and the Governor’s office opposing a new paid family leave mandate. For more information on S-2249, contact John Rogers at ext. 209.

Property Tax Credits and Cap Win Approval—The Senate on February 5 gave final legislative approval to A-1 (Roberts, McKeon)/S-20 (Codey, Kenny), which would provide property tax credits of 20 percent to homeowners with annual household incomes under $100,000; 15 percent for those with incomes between $100,000 and $150,000; and 10 percent for those with incomes between $150,000 and $250,000. The measure would also cap the amount by which local governments could increase property taxes to 4 percent per year, but includes numerous cap exemptions, such as the need to offset reductions in State aid, and make up for increased debt and interest payments. The bill also includes important provisions that would allow local governments to negotiate health insurance premium cost-sharing arrangements with their employees enrolled in the State Health Benefits Plan. The bill now goes to Governor Corzine to be signed into law.

The Senate also passed A-4 (Roberts, Wisniewski)/S-10 (Smith), which would make it easier for municipalities and school districts to voluntarily share services. The measure includes provisions for greater local government budget transparency, simpler rules to facilitate local government regionalization and cooperation, and a greater oversight role for county school superintendents to push local school districts towards more cost-cutting, efficiency and cooperation. This bill goes back to the Assembly to concur with Senate amendments. For more information, contact Christopher Emigholz at ext. 201.

To keep you informed about how property tax reform will affect your business, NJBIA has created a Web page, Property Tax Facts.

Meet the Decision Makers Series Begins February 21 with Labor Commissioner David Socolow—NJBIA will kick off its Meet the Decision Makers breakfast series on Wednesday, February 21, with David Socolow, Commissioner of the NJ Department of Labor and Workforce Development (DOL). Find out what’s in store for employers on issues such as wage and hour enforcement, unemployment insurance, and workers’ compensation. Also, several Labor Department officials will be on hand to answer individual questions and distribute valuable information. This is also a great networking opportunity. Register for this event now.

The breakfast will be held from 7:30 a.m. to 10:00 a.m. at Forsgate Country Club in Monroe Township. The cost to attend each breakfast is $69 per person for NJBIA members and $105 for nonmembers. For more information, contact Stacy Wichner at 609-393-7707, ext. 213. Call Sherry Esteves at ext. 219 to become a high profile sponsor.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. 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 online or contact Sherry Esteves at 609-393-7707, ext. 219.