Paid Leave Mandate Will Hurt Small Businesses
During an Impending Recession, NJBIA Says

News Release: Friday, March 7, 2008
Contact: 609-393-7707, Ext. 227

The massive paid leave mandate scheduled for an Assembly Appropriations Committee vote on Monday, March 10 would damage small businesses, disrupt workplaces of all sizes, hurt New Jersey’s already dismal business climate and hurt the State’s economy, NJBIA President Philip Kirschner said.

“Legislators should not be fooled, there are no amendments that will make this bill anything but an albatross around the necks of small businesses and employers of every size,” Kirschner said.  “Anyone who cares about small businesses in New Jersey must vote no on A-873.”

A-873 (Albano) would provide employees at every business in the State with six weeks of paid leave.  Unlike unpaid leave laws, small businesses with fewer than 50 employees would not be exempt.  And contrary to the assertions of proponents of the bill, any small business that tries to permanently replace a worker taking leave would risk a lawsuit and massive liability.

Businesses would be forced to pay for temporary workers, overtime, or lost productivity in their workplaces, Kirschner pointed out.  Some jobs would simply not get done.  “In many cases it would be difficult to find skilled workers to fill positions,” Kirschner said. “This would hurt the businesses’ relationship with their customers and put them at a disadvantage with competitors in neighboring states, which do not have this mandate.”

Furthermore, New Jersey is either already in or heading towards a recession.  Imposing a paid leave mandate on businesses at this time is reckless, Kirschner said.  “New Jersey alone lost 9,200 private-sector jobs in January.  But instead of working to bolster New Jersey’s economy, legislators are trying to enact a new job-killing mandate.”

Kirschner pointed out that employers already work with employees when there is a family situation that requires their attention.  “Employers use existing sick time and vacation time, flexible work schedules, work-from-home arrangements, and a host of other strategies to help employees balance their work and family responsibilities,” Kirschner said.

“What businesses don’t need is a one-size-fits-all mandate that will leave them without key employees for long periods of time,” Kirschner said.  “Let’s scrap this bill and get to work on building a business climate that creates jobs.”

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

Copyright© 2001 NJBIA
All Rights Reserved. Reproduction in whole or in part in any medium
without express written permission is prohibited.