New Jersey should not impose a massive paid leave mandate on all businesses, especially at a time when the economy is in danger of slipping into a recession, NJBIA told the Senate Budget and Appropriations Committee on January 28.

The committee was holding a hearing on S-786 (Sweeney, Buono), which would grant employees at all businesses six weeks of paid family leave. The committee released the bill in an eight-to-six vote, with Senators Anthony Bucco, Philip Haines, Leonard Lance, Steve Oroho, Kevin O’Toole and Shirley Turner voting against the bill. The bill now heads to the full Senate for consideration.

NJBIA is urging its members to contact their legislative representatives using our quick and easy system to tell them to oppose S-786.

"We are either in a recession or great economic slowdown," NJBIA President Philip Kirschner told the committee. "While Congress, in a bipartisan fashion, is working to help business weather this tough economic time, New Jersey is making it more difficult for employers by imposing a huge new mandate. This legislation will damage employers, add to our State’s negative business climate, and continue to slow the creation of jobs in New Jersey."

The bill would be especially tough on small businesses. Unlike the existing unpaid leave laws, which recognized the burden on small employers and exempted small businesses with two to 49 employees, this bill applies to every employer, no matter how small. It is simply unrealistic to expect employers to operate without employees for almost twelve weeks (six weeks of existing Temporary Disability Insurance for childbirth plus an additional six weeks under the bill). Businesses will be forced to pay for temporary workers, overtime, or lost productivity in their workplaces. Some jobs will simply not get done. In many cases it will be difficult to find skilled workers for these positions.

Kirschner also pointed out that despite assertions to the contrary, businesses do not have the right to terminate employees who take the leave for childbirth. The New Jersey State Law against Discrimination, the Federal Pregnancy Anti-Discrimination Act, and the Americans with Disabilities Act stand against this. It is simply wrong to suggest that small businesses can terminate employees without inviting massive litigation and liability.

Finally, NJBIA told the committee that businesses already work with their employees to balance work and family needs, but need the flexibility to manage their workplaces to meet their specific operations. A one-size-fits-all mandate does not take into account the differences in the needs of the small bakery or office, medium-sized manufacturer or large hospital. For more information, contact at ext. 209.

NJBIA Calls for More Balance in Environmental Policy

Legislators should set limits on the NJ Department of Environmental Protection (DEP) and give it specific directions to follow on environmental legislation, NJBIA told the Senate Environment Committee on January 28. The committee took testimony from a wide variety of groups on the direction the Legislature should take on environmental issues during the new two-year legislative session. NJBIA Vice President David Brogan pointed out that many businesses struggle with environmental regulations not only because the laws themselves can be onerous, but also because of the way in which DEP implements those laws. "Sometimes the department expands the requirements on the regulated community beyond what was discussed in the committee process on a particular bill," Brogan said. "If a bill uses ambiguous language, the DEP is free to do as they choose when writing the regulations."

Furthermore, Brogan noted that the State's regulated community pays some of the highest regulatory fees in the country. Nearly 20 separate environmental funds overseen by DEP have money or continue to accrue funds. The Legislature should ask for documentation on the status of the various funds. For more information, contact at ext. 236.

US House Moves Quickly on Stimulus Package

Less than a week after it was announced, the US House of Representatives on January 29 passed legislation providing tax rebates and other economic incentives to individuals and businesses in an effort to stimulate a lagging economy. The bill, HR 5140 (Pelosi), passed 385 to 35, and now moves to the US Senate for consideration. The measure would provide $146 billion in tax relief, including rebates of $600 to individual taxpayers making less than $75,000 and $1,200 to joint filers making under $150,000. It would also provide businesses with a 50 percent bonus depreciation allowance for equipment placed in service this year and increase to $250,000 the expensing allowance for depreciable business assets. The measure is designed to pump money into the economy to stave off a recession.

Tax Certificates Now Needed for State Financial Assistance, Incentives

Businesses receiving any State financial assistance or monetary benefit form the State government must now obtain a Tax Clearance Certificate under a new law that took effect January 28. The NJ Division of Taxation, which issues the certificates, will research the tax account of applicants to ensure they are up-to-date with their tax obligations. The certificates are required as part of the application for any State business assistance, incentives, grants, loans, or loan guarantees. For more information, contact Sherry Scheingold at (609) 633-8450 or Steven Itell at (609) 292-0140.

Nominate Your Candidate for a New Good Neighbor Award

The deadline for nominations for NJBIA's New Good Neighbor Awards has been extended to February 11. The New Good Neighbor Awards competition recognizes companies that have worked to bring about an improved business climate in New Jersey by building or renovating a commercial facility. Winners are chosen based on economic benefit and job creation, architectural merit, and community involvement. For details, contact at 609-393-7707, ext. 239.

Meet the Governor's Chief of Staff, Chief Counsel and Policy Counsel, Feb. 29

Meet Governor Jon Corzine's new Chief of Staff Bradley Abelow, new Chief Counsel Edward McBride and new Policy Counsel Adam Zellner at this Decision Makers breakfast briefing, February 29 at the Forsgate Country Club in Monroe Township. Get the latest on key issues such as financial restructuring, the budget and healthcare reform and find out what plans the Governor has for the coming year. This is a great networking event! Register online now, or contact at ext. 239 for more information.