SENATE, No. 947

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 14, 1996

 

 

By Senator SINAGRA

 

 

An Act providing family disability leave benefits and revising various provisions of the statutory law.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 2 of P.L.1948, c.110 (C. 43:21-26) is amended to read as follows:

    2. This act shall be liberally construed as remedial legislation enacted upon the following declarations of public policy and legislative findings of fact:

    The public policy of this State, already established, is to protect employees against the suffering and hardship generally caused by involuntary unemployment. But the [unemployment compensation law] "unemployment compensation law" provides benefit payments to replace wage loss caused by involuntary unemployment only so long as an individual is "able to work, and is available for work," and fails to provide any protection against wage loss suffered because of inability to perform the duties of a job interrupted by nonoccupational illness, injury, or other disability of the individual or of members of the individual's family. Nor is there any other comprehensive and systematic provision for the protection of working people against loss of earnings due to such nonoccupational sickness [or] , accident, or other disability.

    The prevalence and incidence of nonoccupational sickness [and], accident, and other disability among employed people is greatest among the lower income groups, who either cannot or will not voluntarily provide out of their own resources against the hazard of earnings loss caused by nonoccupational sickness [or], accident, or other disability. Disabling sickness or accident occurs throughout the working population at one time or another, and approximately fifteen per centum (15%) of the number of people at work may be expected to suffer disabling illness of more than one week each year.


It [has been] was found, prior to the enactment of the "Temporary Disability Benefits Law," P.L.1948, c.110 (C. 43:21-25 et seq.), that then existing voluntary plans for the payment of cash sickness benefits [cover] covered less than one-half of the number of working people of this State who [are now] were covered by the [unemployment compensation law,] "unemployment compensation law," and that even [this] that degree of voluntary protection [affords] afforded uneven, unequal and sometimes uncertain protection among the various voluntary benefit programs. While the enactment of that law has provided stable protection for New Jersey's disabled workers, there are very few workers who are currently protected from income losses caused by the need to take time off from work to care for family members who are disabled and unable to care for themselves, including newborn and newly-adopted children. The growing portion of middle-income families in which all adult family members work, largely due to economic necessity, points to the desperate need for replacement income when a working family member must take time to care for family members who are unable to take care of themselves. Moreover, the United States is the only industrialized nation in the world which does not have a mandatory workplace-based program for such income support. It is therefore desirable and necessary to fill the gap in existing provisions for protection against the loss of earnings caused by involuntary unemployment, by extending such protection to meet the hazard of earnings loss due to inability to work caused by nonoccupational sickness [or accident], accidents, or other disabilities of workers and members of their families.

    The foregoing facts and considerations require that there be a uniform minimum program providing in a systematic manner for the payment of reasonable benefits to replace partially such earnings loss and to meet the continuing need for benefits where an individual becomes disabled during unemployment or needs to care for family members unable to care for themselves. In order to maintain consumer purchasing power, relieve the serious menace to health, morals and welfare of the people caused by insecurity and the loss of earnings, to reduce the necessity for public relief of needy persons, to alleviate the enormous and growing stress on working families of balancing the demands of work and family needs, and in the interest of the health, welfare and security of the people of this State, such a system, enacted under the police power, is hereby established, requiring the payment of reasonable cash benefits to eligible individuals who are suffering accident or illness which is not compensable under the workmen's compensation law or who need to care for family members unable to care for themselves.

(cf: P.L.1948, c.110, s.2)


    2. Section 3 of P.L.1948, c.110 (C. 43:21-27) is amended to read as follows:

    3. As used in this act, unless the context clearly requires otherwise:

    (a) (1) "Covered employer" means any individual or type of organization, including any partnership, association, trust, estate, joint-stock company, insurance company or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor thereof, or the legal representative of a deceased person, who is an employer subject to the chapter to which this act is a supplement, designated as the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.), except the State, its political subdivisions, and any instrumentality of the State unless such governmental entity elects to become a covered employer under the [Temporary Disability Benefits Law] "Temporary Disability Benefits Law"; provided, however, that commencing with the effective date of this act the State of New Jersey, including Rutgers, The State University, the University of Medicine and Dentistry of New Jersey and the New Jersey Institute of Technology, shall be deemed a covered employer, as defined herein.

    (2) Any governmental entity or instrumentality which is an employer under R.S.43:21-19(h)(5) may elect to become a "covered employer" under this subsection beginning with the date on which its coverage under subsection 19(h)(5) begins or as of January 1 of any year thereafter by filing written notice of such election with the division within at least 30 days of the effective date. Such election shall remain in effect for at least two full calendar years and may be terminated as of January 1 of any year thereafter by filing with the division a written notice of termination at least 30 days prior to the termination date.

    (b) "Covered individual" means any person who is in employment, as defined in the chapter to which this act is a supplement, for which he is entitled to remuneration from a covered employer, or who has been out of such employment for less than two weeks. However, a "covered individual" who is employed by the State of New Jersey, including Rutgers, The State University, the University of Medicine and Dentistry of New Jersey and the New Jersey Institute of Technology, or by any governmental entity or instrumentality which elects to [becoming] become a "covered employer" pursuant to this amendatory act, shall not be eligible to receive any benefits under the [Temporary Disability Benefits Law] "Temporary Disability Benefits Law" until such individual has exhausted all sick leave accumulated as an employee in the classified service of the State or accumulated under terms and conditions similar to classified employees or accumulated under the terms and conditions pursuant to the laws of this State or as the result of a negotiated contract with any governmental entity or instrumentality which elects to become a "covered employer."

    "Covered individual" shall not mean any member of the Division of State Police in the Department of Law and Public Safety.

    (c) "Division" or "commission" means the Division of Unemployment and Temporary Disability Insurance of the Department of Labor, and any transaction or exercise of authority by the director of the division shall be deemed to be performed by the division.

    (d) "Day" shall mean a full calendar day beginning and ending at midnight.

    (e) "Disability" shall mean such disability as is compensable under section 5 of this act.

    (f) "Disability benefits" shall mean any cash payments which are payable to a covered individual pursuant to this act.

    (g) "Period of disability" with respect to any individual shall mean the entire period of time during which he is continuously and totally unable to perform the duties of his employment, except that two periods of disability due to the same or related cause or condition and separated by a period of not more than 14 days shall be considered as one continuous period of disability; provided the individual has earned wages during such 14-day period with the employer who was his last employer immediately preceding the first period of disability.

    (h) "Wages" shall mean all compensation payable by covered employers to covered individuals for personal services, including commissions and bonuses and the cash value of all compensation payable in any medium other than cash.

    (i) (1) "Base week" with respect to periods of disability commencing prior to October 1, 1984, means any calendar week during which an individual earned not less than $15.00 from a covered employer, in employment as defined in the chapter to which this act is a supplement.

    (2) "Base week" with respect to periods of disability commencing on or after October 1, 1984, and prior to October 1, 1985, means any calendar week during which an individual earned in employment from a covered employer remuneration equal to not less than 15% of the Statewide average weekly remuneration as determined under subsection (c) of R.S. 43:21-3, which shall be adjusted to the next higher multiple of $1.00 if not already a multiple thereof.

    (3) "Base week" with respect to periods of disability commencing on or after October 1, 1985, means any calendar week during which an individual earned in employment from a covered employer remuneration equal to not less than 20% of the Statewide average weekly remuneration as determined under subsection (c) of R.S.43:21-3, which shall be adjusted to the next higher multiple of $1.00 if not already a multiple thereof.

    (4) "Base week" with respect to periods of family disability leave commencing on or after January 1, 1997, means any calendar week during which an individual earned in employment from a covered employer remuneration equal to not less than 20% of the Statewide average weekly remuneration as determined under subsection (c) of R.S.43:21-3, which shall be adjusted to the next higher multiple of $1.00 if not already a multiple thereof.

    (j) "Average weekly wage" means the amount derived by dividing a covered individual's total wages earned from his most recent covered employer during the base weeks in the eight calendar weeks immediately preceding the calendar week in which disability or family disability leave commenced, by the number of such base weeks. If this computation yields a result which is less than the individual's average weekly earnings in employment, as defined in the chapter to which this act is a supplement, with all covered employers during the base weeks in such eight calendar weeks, then the average weekly wage shall be computed on the basis of earnings from all covered employers during the eight base weeks immediately preceding the week in which the disability or family disability leave commenced.

    (k) "Child" means a biological, adopted, or foster child, stepchild or legal ward who is less than 18 years of age or is 18 years of age or older but incapable of self-care because of mental or physical impairment.

    (l) "Family disability leave" means leave taken by a covered individual from employment to provide care for a family member made necessary by: the birth of a child of the individual; the placement of a child with the individual in connection with the adoption of the child by the individual; or a serious health condition of a family member of the individual.

    (m) "Family member" means a child, parent or spouse of a covered individual;

    (n) "Parent" means a biological parent, foster parent, adoptive parent, or stepparent of a covered individual or a person who was a legal guardian of the covered individual when the covered individual was a child.

    (o) "Period of family disability leave" means the period of leave taken from employment by a covered individual to provide care for a family member in a single one of the following events:

    (1) The birth of a child of the individual;

    (2) The placement of a child with the individual in connection with the adoption of the child by the individual; or

    (3) A serious health condition episode of a family member of the individual.

    (p) "Serious health condition" means an illness, injury, or physical or mental condition which requires: inpatient care in a hospital, hospice, or residential medical care facility; or continuing medical treatment or continuing supervision by a health care provider.

(cf: P.L.1984, c.104, s.1)


    3. Section 8 of P.L.1948, c.110 (C. 43:21-32) is amended to read as follows:

    8. Establishment of private plans.

    Any covered employer may establish a private plan for the payment of disability benefits in lieu of the benefits of the State plan hereinafter established. Benefits under such a private plan may be provided by a contract of insurance issued by an insurer duly authorized and admitted to do business in this State, or by an agreement between the employer and a union or association representing his employees, or by a specific undertaking by the employer as a self-insurer. Subject to the insurance laws of this State, such a contract of insurance may be between the insurer and the employer; or may be between the insurer and two or more employers, acting for the purpose through a nominee, designee or trustee; or may be between the insurer and the union or association with which the employer has an agreement with respect thereto. Each such private plan shall be submitted in detail to the Division of Employment Security and shall be approved by the division, to take effect as of the first day of the calendar quarter next following, or as of an earlier date if requested by the employer and approved by the Division of Employment Security, if it finds that:

    (a) all of the employees of the employer are to be covered under the provisions of such plan with respect to any disability and, after December 31, 1996, any family disability leave, commencing after the effective date of such plan, except as otherwise provided in this section; and

    (b) eligibility requirements for benefits are no more restrictive than as provided in this act for benefits payable by the State plan; and

    (c) the weekly benefits payable under such plan for any week of disability or family disability leave are at least equal to the weekly benefit amount payable by the State plan, taking into consideration any coverage with respect to concurrent employment by another employer, and the total number of weeks of disability or family disability leave for which benefits are payable under such plan is at least equal to the total number of weeks for which benefits would have been payable by the State plan; and

    (d) no greater amount is required to be paid by employees toward the cost of benefits than that prescribed by law as the amount of worker contribution to the State disability benefits fund for covered individuals under the State plan; and

    (e) coverage is continued under the plan while an employee remains a covered individual as defined in section three of this act, but not after the employee may become employed by another employer following termination of employment to which the plan relates; and

    (f) a majority of the employees to be covered by the plan have or shall have agreed to the plan prior to the effective date thereof, if employees are required to contribute to the cost of the private plan, as provided in section nine.

    Subject to the approval of the Division of Employment Security, any such private plan may exclude a class or classes of employees, except a class or classes determined by the age, sex or race of the employees, or by the wages paid such employees, the exclusion of which, in the opinion of the division, will result in a substantial selection of risk adverse to the State plan. Covered individuals so excluded shall be covered by the State plan and subject to the employee contribution required by law to be paid into the State disability benefits fund.

(cf: P.L.1953, c.426, s.1)

 

    4. Section 9 of P.L.1948, c.110 (C. 43:21-33) is amended to read as follows:

    9. Election by employees: deduction of contributions.

    If employees are to be required to contribute toward the cost of benefits under a private plan, such plan shall not become effective unless prior to the effective date a majority of the employees in the class or classes to be covered thereby have agreed thereto by written election. In such event, the employer may during the continuance of the approved private plan collect the required contributions thereto by deduction from the wages paid to covered individuals under such plan, which deduction may be combined with that deduction required by Revised Statutes, section 43:21-7(d)(1) if reasonable notice is given covered individuals concerning such combined deduction by the employer; provided, that if any employer fails to deduct the contributions of any of his employees at the time their wages are paid, or fails to make a deduction therefor at the time wages are paid for the next succeeding payroll period, he may not thereafter collect a contribution with respect to such wages previously paid.

    A covered individual shall not be entitled to any benefits from the State disability benefits fund with respect to any period of disability or family disability leave commencing while he is covered under an approved private plan.

(cf: P.L.1950, c.173, s.3)

 

    5. Section 10 of P.L.1948, c.110 (C. 43:21-34) is amended to read as follows:

    10. If upon the effective date of this act a covered employer has in effect a plan for the payment of cash disability benefits to his employees or to any class or classes thereof, or has in effect an agreement with a union or association whereby there is in effect a plan for the payment of cash disability benefits to his employees or to any class or classes thereof (and to the cost of which plan the employer is obligated to contribute,) such plan shall, regardless of the requirements of this article, be deemed to be an approved private plan until the earliest date upon which the employer shall have the right to modify the benefits of or discontinue such plan, or to discontinue contributions toward the cost thereof. In such case the employer shall notify the commission of the circumstances. During the continuance of such private plan the employees covered thereunder shall not be entitled to any benefits under the State plan with respect to any period of disability or family disability leave commencing while they are covered under such private plan. If any such private plan covers only a class or classes of covered individuals, the employer may effect another private plan for his remaining employees or for a class or classes of them, subject to the requirements and limitations of section eight.

(cf: P.L.1948, c.110, s.10)

 

    6. Section 11 of P.L.1948, c.110 (C. 43:21-35) is amended to read as follows:

    11. (a) If the division is furnished satisfactory evidence that a majority of the employees covered by an approved private plan have made election in writing to discontinue such plan, the division shall withdraw its approval of such plan effective at the end of the calendar quarter next succeeding that in which such evidence is furnished. Upon receipt of a petition therefor signed by not less than 10% of the employees covered by an approved private plan, the division shall require the employer upon 30 days' written notice to conduct an election by ballot in writing to determine whether or not a majority of the employees covered by such private plan favor discontinuance thereof; provided, that such election shall not be required more often than once in any 12-month period.

    (b) Unless sooner permitted, for cause, by the division, no approved private plan shall be terminated by an employer, in whole or in part, until at least 30 days after written notice of intention so to do has been given by the employer to the division and after notices are conspicuously posted so as reasonably to assure their being seen, or after individual notices are given to the employees concerned.

    (c) The division may, after notice and hearing, withdraw its approval of any approved private plan if it finds that there is danger that the benefits accrued or to accrue will not be paid, that the security for such payment is insufficient, or for other good cause shown. No employer, and no union or association representing employees, shall so administer or apply the provisions of an approved private plan as to derive any profit therefrom. The division may withdraw its approval from any private plan which is administered or applied in violation of this provision.

    (d) No termination of an approved private plan shall affect the payment of benefits, in accordance with the provisions of the plan, to disabled employees whose period of disability or family disability leave commenced prior to the date of termination. Employees who have ceased to be covered by an approved private plan because of its termination shall, subject to the limitations and restrictions of this act, become eligible forthwith for benefits from the State Disability Benefits Fund for disability or family disability leave commencing after such cessation, and contributions with respect to their wages shall immediately become payable as otherwise provided by law. Any withdrawal of approval of a private plan pursuant to this section shall be reviewable by writ of certiorari or by such other procedure as may be provided by law.

    (e) Anything in this act to the contrary notwithstanding, a covered employer who, under an approved private plan, is providing benefits at least equal to those required by the State plan, may modify the benefits under the private plan so as to provide benefits not less than the benefits required by the State plan; provided, that individuals covered under such plan shall not be required to contribute to such plan at a rate exceeding 3/4 of 1% of the amount of "wages" established for any calendar year under the provisions of R.S.43:21-7(b) prior to January 1, 1975, and 1/2 of 1% for calendar years beginning on or after January 1, 1975. Notification of such proposed modification shall be given by the employer to the division and to the individuals covered under such plan, on or before May 1, 1975.

(cf: P.L.1974, c.86, s.8)

 

    7. Section 15 of P.L.1948, c.110 (C. 43:21-39) is amended to read as follows:

    15. Limitation of benefits. Notwithstanding any other provision of the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et seq.), no benefits shall be payable under the State plan to any person:

    (a) (1) for the first seven consecutive days of each period of disability; except that if benefits shall be payable for three consecutive weeks with respect to any period of disability commencing on or after January 1, 1968, then benefits shall also be payable with respect to the first seven days thereof;

    (2) for the first seven consecutive days of each period of family disability leave; except that if benefits are payable for three weeks with respect to any period of disability commencing on or after January 1, 1997, then benefits shall also be payable with respect to the first seven days thereof and, in the case of intermittent leave in a single period of leave the seven-day waiting period shall apply only one time during the entire period of leave;

    (b) (1) for more than 26 weeks with respect to any one period of disability;


    (2) for more than 12 weeks with respect to any one period of family disability leave;

    (3) for more than 12 weeks of family disability leave during any 12-month period;

    (4) for more than 26 weeks, with respect to all periods of disability and family disability leave during any 12-month period, except when the individual is paid benefits for more than 26 weeks with respect to periods of disability during the 12-month period;

    (c) for any period of disability or family disability leave which did not commence while the claimant was a covered individual;

    (d) for any period of disability during which the claimant, or, in a case of family disability leave for a serious health condition of a family member of the claimant, the family member, is not under the care of a legally licensed physician, dentist, optometrist, podiatrist, practicing psychologist, [or] chiropractor, or other health care provider approved by, or meeting standards set by, the division who, when requested by the division, shall certify within the scope of the practitioner's practice, the disability of the claimant or the serious health condition of the family member, the probable duration thereof, and, where applicable, the medical facts within the practitioner's knowledge;

    (e) (Deleted by amendment, P.L.1980, c.90.)

    (f) for any period of disability due to willfully and intentionally self-inflicted injury, or to injury sustained in the perpetration by the claimant of a crime of the first, second, or third degree;

    (g) for any period during which the claimant performs any work for remuneration or profit;

    (h) in a weekly amount which together with any remuneration the claimant continues to receive from the employer would exceed regular weekly wages immediately prior to disability or family disability leave;

    (i) for any period during which a covered individual would be disqualified for unemployment compensation benefits under subsection (d) of R.S.43:21-5, unless the disability commenced prior to such disqualification; and there shall be no other cause of disqualification or ineligibility to receive disability benefits hereunder except as may be specifically provided in this act.

(cf: P.L.1989, c.213, s.2)

 

    8. Section 16 of P.L.1948, c.110 (C.43:21-40) is amended to read as follows:

    16. With respect to periods of disability commencing on or after July 1, 1961, an individual's weekly benefit amount shall be determined and computed by the division on the same basis as the weekly benefit rate is determined and computed pursuant to subsection (c) of R.S.43:21-3, except that for periods of disability commencing on or after October 1, 1984 and periods of family disability leave commencing on or after January 1, 1997, an individual's weekly benefit rate shall be two-thirds of his average weekly wage, subject to a maximum of 53% of the Statewide average weekly remuneration paid to workers by employers, as determined under subsection (c) of R.S.43:21-3; provided, however, that such individual's benefit rate shall be computed to the next lower multiple of $1.00 if not already a multiple thereof. The amount of benefits for each day of disability or family disability leave for which benefits are payable shall be one-seventh of the corresponding weekly benefit amount; provided that the total benefits for a fractional part of a week shall be computed to the next lower multiple of $1.00 if not already a multiple thereof.

(cf: P.L.1984, c.104, s.3)

 

    9. Section 17 of P.L.1948, c.110 (C. 43:21-41) is amended to read as follows:

    17. (a) (Deleted by amendment, P.L.1975, c. 355.)

    (b) [With respect to periods of disability commencing on or after January 1, 1953, and prior to January 1, 1976, no individual shall be entitled to benefits under this article unless he has established at least 17 base weeks within the 52 calendar weeks preceding the week in which his period of disability commenced, nor unless he shall duly file notice and proof of claim, and submit to such reasonable examinations as are required by this act and the rules and regulations of the division.] (Deleted by amendment, P.L. , c. )(pending before the Legislature as this bill)

    (c) [With respect to periods of disability commencing on or after January 1, 1976, and prior to October 1, 1984, no individual shall be entitled to benefits under this article unless he has established at least 17 base weeks within the 52 calendar weeks preceding the week in which his period of disability commenced, or, in the alternative, has earned $2,200.00 or more within the 52 calendar weeks preceding the week in which his period of disability commenced, nor unless he shall duly file notice and proof of claim, and submit to such reasonable examinations as are required by this act and the rules and regulations of the division.

    Notwithstanding any provisions of this section to the contrary, the provision of subsection 17(c) shall apply to any claim pending before the division or the courts on the effective date of this act.] (Deleted by amendment, P.L. , c. )(pending before the Legislature as this bill)

    (d) With respect to periods of disability commencing on or after October 1, 1984, no individual shall be entitled to benefits under this act unless he has established at least 20 base weeks within the 52 calendar weeks preceding the week in which his period of disability commenced, or, in the alternative, the individual has earned twelve times the Statewide average weekly remuneration paid to workers, as determined under subsection (c) of R.S.43:21-3, raised to the next higher multiple of $100.00, if not already a multiple thereof, or more within the 52 calendar weeks preceding the week in which his period of disability commenced, nor shall the individual be entitled to benefits unless he shall duly file notice and proof of claim, and submit to such reasonable examinations as are required by this act and the rules and regulations of the division.

    (e) With respect to periods of family disability leave commencing on or after January 1, 1997, no individual shall be entitled to benefits under this act unless he has established at least 20 base weeks within the 52 calendar weeks preceding the week in which the period of family disability leave commenced, or, in the alternative, the individual has earned twelve times the Statewide average weekly remuneration paid to workers, as determined under subsection (c) of R.S. 43:21-3, raised to the next higher multiple of $100.00, if not already a multiple thereof, or more within the 52 calendar weeks preceding the week in which the period of family disability leave commenced, nor shall the individual be entitled to benefits unless he files all notices, proofs and certifications required by this act, and submits to any reasonable examinations required by this act and the rules and regulations of the division.

(cf: P.L.1984, c.104, s.4)

 

    10. Section 23 of P.L.1948, c.110 (C. 43:21-47) is amended to read as follows:

    23. Withdrawal from Federal Treasury. (a) The State Treasurer is hereby authorized and directed to requisition and withdraw on or before December 31, 1948, the sum of $50,000,000.00 from the amount of worker contributions heretofore accumulated in the State unemployment compensation fund and deposited in and credited to the account of this State in the unemployment trust fund of the United States of America, established and maintained pursuant to section 904 of the Social Security Act, as amended (42 U.S.C. {1104), and to deposit such sums in the State disability benefits fund, established under the "Temporary Disability Benefits Law." The State Treasurer is further authorized and empowered to make such requisitions or withdrawals in accordance with such regulations relating thereto as may be prescribed by the United States Secretary of the Treasury. No portion of the amount requisitioned or withdrawn from the Federal Treasury shall be expended for the purpose of administering the "Temporary Disability Benefits Law."

    (b) The State Treasurer is hereby authorized and directed to requisition and withdraw within 90 days of this enactment, an additional sum of $50,000,000.00 from the amount of worker contributions heretofore accumulated in the State unemployment compensation fund and deposited in and credited to the account of this State in the unemployment trust fund of the United States of America, established and maintained pursuant to section 904 of the Social Security Act, as amended (42 U.S.C.{1104), and to deposit such sums in the State disability benefits fund, established under the "Temporary Disability Benefits Law." The State Treasurer is further authorized and empowered to make such requisitions or withdrawals in accordance with such regulations relating thereto as may be prescribed by the United States Secretary of the Treasury. If the balance in the State disability benefits fund as of December 31 of any calendar year, increased by the contributions credited thereto on or before, or as of January 31 immediately thereafter is in excess of $75,000,000.00, the excess shall be withdrawn from the State disability benefits fund and deposited to the account of this State in the unemployment trust fund until the entire $50,000,000.00 requisitioned and withdrawn under this subsection (b) has been returned and deposited to the account of this State in the unemployment trust fund pursuant to the provisions of this subsection (b) and subsection (c) hereof. Such repayment to the unemployment trust fund shall be considered in determining contribution rates by employers to the State disability benefits fund under R.S.43:21-7(c). No portion of the amount requisitioned or withdrawn from the Federal Treasury shall be expended for the purpose of administering the "Temporary Disability Benefits Law."

    (c) The State Treasurer shall transfer from the State disability benefits fund to the clearing account of the unemployment compensation fund, as established under R.S.43:21-9, the sum of $25,000,000.00. Such transfer may be made at such times and in such installments as the State Treasurer may deem proper, except that the total sum shall have been transferred by no later than April 30, 1971. Amounts transferred to the clearing account of the unemployment compensation fund under this subsection shall be clear immediately and shall be deposited with the Secretary of the Treasury of the United States of America in accordance with the provisions of R.S.43:21-9(b).

    (d) The State Treasurer is hereby authorized and directed to requisition and withdraw on or before December 31, 1985 a minimum of $50,000,000.00, at the discretion of the Commissioner of Labor, from the State disability benefits fund established under section 22 of P.L.1948, c.110 (C.43:21-46) and to deposit such sum in the clearing account of the State unemployment compensation fund established under R.S.43:21-9. The amount transferred under this subsection (d) shall be cleared immediately and shall be deposited with the Secretary of the Treasury of the United States of America, in accordance with the provisions of R.S.43:21-9(b).

    (e) The State Treasurer is hereby authorized and directed to requisition and withdraw on or after July 1, 1992 an amount not greater than $25,000,000 from revenues received pursuant to paragraph (1) of subsection (e) of R.S.43:21-7, at the discretion of the Commissioner of Labor, from the State disability benefits fund established pursuant to section 22 of P.L.1948, c.110 (C.43:21-46) and to deposit that amount in the New Jersey Workforce Development Partnership Fund created pursuant to section 9 of P.L.1992, c.43 (C.34:15D-9).

    (f) The State Treasurer, in consultation with the Commissioner of Labor, is hereby authorized and directed to requisition and withdraw on or after July 1, 1994 from revenues received pursuant to paragraph (1) of subsection (e) of R.S.43:21-7, an amount from the State disability benefits fund not greater than 25% of the balance in that fund as of June 30, 1994 and to deposit that amount in the clearing account of the unemployment compensation fund established under R.S.43:21-9. The amount transferred under this subsection (f) shall be cleared immediately and shall be deposited with the Secretary of the Treasury of United States of America, in accordance with the provisions of R.S.43:21-9(b).

    (g) To the extent that funds from the General Fund are also deposited into the clearing account subsequent to July 1, 1994 but before October 2, 1994, such amount shall be reimbursed to the General Fund from amounts collected pursuant to R.S.43:21-7(d)(1)(G) and R.S.43:21-7(e) for quarterly periods ending on or after September 30, 1994.

    (h) The amount transferred from the State disability benefits fund to the clearing account of the unemployment compensation fund under subsection (f) of this section plus any amount reimbursed to the General Fund in accordance with subsection (g) shall be repaid to the State disability benefits fund from general state revenues with interest at the rate earned by the investments made with moneys remaining in the State disability benefits fund. The repayment period shall not exceed ten years. The amount repaid each year shall be not less than one tenth of the total amount transferred from the State disability benefits fund to the clearing account of the unemployment compensation fund under subsection (f) of this section, plus not less than one tenth of the amount reimbursed to the General Fund in accordance with subsection (g), plus accrued interest, and, on January 1, 1997, the State Treasurer shall repay the entire amount not yet repaid by depositing that entire amount from the General Fund to the State disability benefits fund. [The State Treasurer shall, on or before the thirty-first day of January in 1995 and in each subsequent year determine what amount shall be repaid to the State disability benefits fund in the next commencing fiscal year, which amount shall be consistent with the provisions of this subsection (h). The Legislature shall appropriate that amount from the General Fund to the State disability benefits fund. For purposes of determining the balance in the State disability benefits fund as prescribed pursuant to subparagraph (1) of subparagraph (E) of paragraph (3) of subsection (e) of R.S.43:21-7, the amount transferred from the State disability benefits fund to the unemployment compensation fund pursuant to subsection (f) of this section and reimbursed to the General Fund pursuant to subsection (g) of this section less repayments or other reductions, plus accrued interest shall be included therein.]

(cf: P.L.1994, c.112, s.4)

 

    11. Section 24 of P.L.1948, c.110 (C. 43:21-48) is amended to read as follows:

    24. Assessment of costs of administration.

    (a) If officers or employees of the Division of Employment Security perform duties in part related to the administration of this act and of the [unemployment compensation law,] "unemployment compensation law," or if there be expenses otherwise incurred jointly in connection with administration of such acts, the division shall make an equitable apportionment to determine the portion of total expense to be charged to administration of this act including R.S.43:21-4(f). So far as possible such apportionment shall be based upon records to be maintained with the respect to activities undertaken in administering this act.

    (b) The Division of Employment Security shall, at the end of each fiscal year, determine the total amount expended by it for administrative cost directly attributable to the supervision and operation of approved private plans, together with a proportionate part of the administrative cost of R.S.43:21-4(f), and such total amount shall be prorated among the approved private plans in effect during that year on the basis of the total amount of taxable wages that were paid to all employees covered under such private plans. The prorated amounts shall be assessed against the respective employers but shall not exceed 1/20 of 1% of such wages, and such amounts shall be collectible by the division in the same manner as provided for the collection of employer contributions under the chapter to which this act is a supplement. In making this assessment, the division shall furnish to each affected employer a brief summary of the apportionment of expense to be charged to administration of this act, and of the facts upon which the calculation of the assessment is based. The amounts of such assessments shall be credited to the administration account.

    (c) The division shall, at the end of each fiscal year, determine the total amount expended by it for administrative cost directly attributable to maintaining separate disability benefits accounts for employers required to contribute to the State disability benefits fund and assigning modified rates of contribution to such employers in accordance with the provisions of R.S.43:21-7(e)(3). Such total amount of administrative costs shall be prorated among such employer accounts on the basis of the total amount of taxable wages paid to all employees during the preceding calendar year with respect to which contributions were payable to the State disability benefits fund. The prorated amounts shall be assessed against the respective employers, and such amounts shall be collectible by the division in the same manner as provided for the collection of employer contributions in R.S.43:21-14. The amounts of such assessments shall be credited to the administration account.

    (d) Any expenses which the Task Force on Work and the Family determines are necessary to carry out its duties pursuant to section 17 of this 1996 amendatory and supplementary act shall be prorated among employers required to contribute to the State disability benefits fund and employers covered by approved private plans on the basis of the total amount of taxable wages paid to all employees by each employer. The prorated amounts shall be assessed against the respective employers, and such amounts shall be collectible by the division in the same manner as provided for the collection of employer contributions in R.S.43:21-14.

(cf: P.L.1970, c.324, s.3)

 

    12. Section 25 of P.L.1948, c.110 (C. 43:21-49) is amended to read as follows:

    25. (a) In the event of the disability or family disability leave of any individual covered under the State plan, the employer shall on the ninth day of disability or family disability leave issue to the individual and to the division printed notices on division forms containing the name, address and Social Security number of the individual, such wage information as the division may require to determine the individual's eligibility for benefits, and the name, address, and division identity number of the employer, together with a printed copy of benefit instructions of the division. Not later than 30 days after the commencement of the period of disability or family disability leave for which such notice is furnished, the individual shall furnish to the division a notice and claim for disability benefits under the State plan or for disability during unemployment. Upon the submission of such notices by the employer and the individual, the division may issue benefit payments for periods not exceeding 3 weeks pending the receipt of medical proof and other required certification. When requested by the division, such notice and proof shall include certification of total disability by the attending physician, or a record of hospital confinement and, in the case of family disability leave, the certifications required pursuant to section 15 of this 1996 amendatory and supplemental act. Failure to furnish notice and proof within the time or in the manner above provided shall not invalidate or reduce any claim if it shall be shown to the satisfaction of the division not to have been reasonably possible to furnish such notice and proof and that such notice and proof was furnished as soon as reasonably possible.

    (b) A person claiming benefits under the State plan or for disability during unemployment shall, when requested by the division, submit at intervals, but not more often than once a week, to an examination by a legally licensed physician, dentist, podiatrist, chiropractor, or public health nurse designated by the division. In all cases of physical examination of a claimant, the examination shall be made by a designee of the division, who shall be the same sex as the claimant if so requested by the claimant. All such examinations by physicians, dentists, podiatrists, chiropractors or nurses designated by the division shall be without cost to the claimant and shall be held at a reasonable time and place. Refusal to submit to such a requested examination shall disqualify the claimant from all benefits for the period of disability in question, except as to benefits already paid.

    (c) All medical records of the division, except to the extent necessary for the proper administration of this act, shall be confidential and shall not be published or be open to public inspection (other than to public employees in the performance of their public duties) in any manner revealing the identity of the claimant, or the nature or cause of disability nor admissible in evidence in any action or special proceeding other than one arising under this act.

(cf: P.L.1980, c.90, s.15)

 

    13. Section 31 of P.L.1948, c.110 (C. 43:21-55) is amended to read as follows:

    31. Penalties. (a) Whoever makes a false statement or representation knowing it to be false or knowingly fails to disclose a material fact, and each such false statement or representation or failure to disclose a material fact shall constitute a separate offense, to obtain or increase any benefit under the State plan or an approved private plan, or for a disability during unemployment, either for himself or for any other person, shall be liable to a fine of twenty dollars ($20.00) to be paid to the Division of Employment Security. Upon refusal to pay such fine, the same shall be recovered in a civil action by the division in the name of the State of New Jersey. If in any case liability for the payment of a fine as aforesaid shall be determined, any person who shall have received any benefits hereunder by reason of the making of such false statements or representations or failure to disclose a material fact, shall pay to the division, the employer or insurer, as the case may be, an amount equal to the sum of any benefits hereunder received from the division, employer or insurer by reason thereof, and such person shall not be entitled to any benefits under this act for any disability or family disability leave occurring prior to the time he shall have discharged his liability hereunder to pay such fine, and to reimburse the division, employer or insurer.

    (b) Any employer or any officer or agent of any employer or any other person who makes a false statement or representation knowing it to be false or knowingly fails to disclose a material fact, to prevent or reduce the benefits to any person entitled thereto, or to avoid becoming or remaining subject hereto or to avoid or reduce any contribution or other payment required from an employer under this act, or who willfully fails or refuses to make any such contributions or other payment or to furnish any reports required hereunder or to produce or permit the inspection or copying of records as required hereunder, shall be liable to a fine of twenty dollars ($20.00) to be paid to the division. Upon refusal to pay such fine, the same shall be recovered in a civil action by the division in the name of the State of New Jersey.

    (c) Any person who shall willfully violate any provision hereof or any rule or regulation made hereunder, for which a fine is neither prescribed herein nor provided by any other applicable statute, shall be liable to a fine of fifty dollars ($50.00) to be paid to the division. Upon the refusal to pay such fine, the same shall be recovered in a civil action by the division in the name of the State of New Jersey.

    (d) Any person, employing unit, employer or entity violating any of the provisions of the above subsections with intent to defraud the Division of Employment Security of the State of New Jersey shall in addition to the penalties hereinbefore described, be liable for each offense upon conviction before the Superior Court or any municipal court to a fine not to exceed two hundred fifty dollars ($250.00) or by imprisonment for a term not to exceed ninety days, or both, at the discretion of the court. The fine upon conviction shall be payable to the State disability benefits fund of the Division of Employment Security. Any penalties imposed by this subsection shall be in addition to those otherwise prescribed in this chapter (R.S.43:21-1 et seq.).

(cf: P.L.1991, c.91, s.422)

 

    14. (New section) Family disability leave shall be compensable subject to the limitations of this 1996 amendatory and supplementary act for any period of family disability leave taken by a covered individual which commences on or after January 1, 1997, and, if the individual is not entitled to family disability leave benefits for that leave under an approved private plan, the individual shall be entitled to the benefits under the State plan. The benefits shall be payable with respect to the eighth consecutive day of the leave period and each day thereafter and if the period continues for longer than three weeks, then benefits shall also be payable for the first seven days of the leave period. In the case of intermittent leave taken pursuant to the provisions of this act, the seven-day waiting period shall only apply one time during the entire leave period. The maximum total benefits payable to a covered individual during a period of family disability leave shall be either 12 times the individual's weekly benefit or one third of the total wages in the individual's base year, whichever is less, provided that the maximum amount shall be computed in the next lower multiple of $1.00 if not already a multiple thereof.

    In the case of a family member who has a serious health condition, the period of family leave may be taken intermittently when medically necessary, if:

    a. The total time within which the leave is taken does not exceed 12-months.

    b. The covered individual provides the employer with prior notice of the leave in a manner which is reasonable and practicable; and

    c. The covered individual makes a reasonable effort to schedule the leave so as not to disrupt unduly the operations of the employer.

    In the case of the birth or adoption of a healthy child, the leave may be taken intermittently if agreed to by the covered individual and the employer of the individual.

    Leave taken because of the birth or placement for adoption of a child may commence at any time within a year after the date of the birth or placement for adoption.

 

    15. (New section) Any period of family disability leave shall be supported by certification issued by a duly licensed health care provider or any other health care provider determined by the division to be capable of providing adequate certification.

    a. If the certification is for the serious health condition of a family member of the covered individual, the certification shall be sufficient if it states:

    (1) The date on which the serious health condition commenced;

    (2) The probable duration of the condition;

    (3) The medical facts within the provider's knowledge regarding the condition;

    (4) A statement that the covered individual is needed to care for the family member; and

    (5) If the leave is intermittent, the dates of planned treatment and a statement of the medical necessity for the intermittent leave and the expected duration of the intermittent leave.

    b. If the certification is for the birth or placement of the child, the certification need only state the date of birth or date of placement, whichever is appropriate.

    If the employer has reason to doubt the validity of the certification provided pursuant to this section, the employer may require, at its own expense, that a covered individual obtain an opinion regarding the serious health condition from a second health care provider designated or approved, but not employed on a regular basis, by the employer. If the second opinion differs from the certification provided pursuant to paragraph (1) of subsection a. of this section, the employer may require, at its own expense, that the covered individual obtain the opinion of a third health care provider designated or approved jointly by the employer and the covered individual concerning the serious health condition. The opinion of the third health care provider shall be considered to be final and shall be binding on the employer and the covered individual.

 

    16. (New section) In any case in which the necessity for family disability leave under this act is foreseeable, based upon an expected birth or placement of the child for adoption, the covered individual shall provide the employer with prior notice of the expected birth or placement of the child for adoption in a manner which is reasonable and practicable.

 

    17. (New section) There is established in, but not of, the Department of Labor, a Task Force on Work and the Family. The task force shall consist of 15 members as follows: the Commissioner of Labor and 14 public members, appointed by the Governor with the advice and consent of the Senate, including: four representatives of women's organizations; four representatives of labor organizations; four representatives of business organizations, and two individuals with expertise on the impact of work on family life. Not more than seven of the public members shall be of the same political party. Any member may be removed from office by the Governor, for cause, after a hearing and may be suspended by the Governor pending the completion of the hearing. All vacancies shall be filled in the same manner as the original appointment. Members shall serve without compensation.

    The task force shall organize itself within 15 days after the appointment of its members. In organizing itself, the task force shall elect a chairperson and vice-chairperson from among its members. Each member shall be entitled to one vote on all matters which may come before the task force. No determination, decision or action of the board shall be made or taken unless a majority of the members votes in favor of the action.

    The task force shall issue a report not later than June 1, 1998 which evaluates and describes the impact of the provisions of this act on the State disability benefits fund, and makes recommendations regarding any changes necessary in the funding of the temporary disability benefits program. The report shall include any draft legislation necessary to implement the recommendations.

    In addition, the task force shall issue a second report not later than June 1, 2000 which evaluates and describes the effects of the provisions of this act, including the costs and benefits resulting from the provisions of this act for:

    a. Employees and their families;

    b. Employers, including benefits such as reduced training and other costs related to reduced turnover of personnel, and increased affordability of family disability leave insurance through the State plan, with special attention given to small businesses; and

    c. The public, including savings caused by any reduction in the number of people receiving public assistance. The task force shall evaluate the impact of the provisions of this act on the temporary disability benefits fund, on welfare costs, and on the stability of employment of participants.

    The second report shall include recommendations regarding whether to continue or modify the provisions of this act after December 31, 2001 and any draft legislation needed to implement the recommendations. That report may also include recommendations regarding the continuation, elimination or modification of experience rating with respect to employer contributions to the State disability benefits fund.

    The task force may hold public hearings and shall have access to all files and records of the Department of the Treasury, the Department of Labor and other relevant State agencies and may call to its assistance and avail itself of the services of the employees of those departments and agencies to provide whatever information the board deems necessary in the performance of its functions.

    The total amount of expenses which the task force determines is necessary to carry out its duties pursuant to this section, if any, shall be charged to the administration account, except that the total amount shall in no case exceed $200,000. The task force shall make that determination in consultation with the Commissioner of Labor and shall report that determination to the Commissioner of Labor not later than the 60th day following its organization.

 

    18. This act shall take effect immediately and sections 1 through 16 of this act shall expire on December 31, 2001.

 

 

STATEMENT

 

    This bill extends the State's existing temporary disability insurance system to provide workers who are participating in the system with paid family leave. The bill provides up to 12 weeks of leave with income-replacement at the same rate that the State's temporary disability insurance currently provides to disabled workers: two thirds of the worker's average weekly wage up to a maximum of 53% of the average weekly wage for all workers. This benefit would be available to a worker to provide care for family members unable to care for themselves in the following instances: the birth of a child of the worker; the adoption of a child by the worker; or a serious health condition of a family member of the individual.

    In the case of a serious health condition of a family member, the leave could be taken intermittently. Intermittent leave is permitted, at the option of the employer, in the case of care for a newborn or newly adopted child.

    The total maximum amount of benefits permitted for a worker in a one-year period for regular temporary disability and family leave combined would not be increased over what is currently provided for regular temporary disability alone, which is usually a maximum of 26 weeks.

    In the case of leave for care of a family member with a serious health condition, the bill requires a worker to provide medical certification not only of the condition of the family member, but also of the need for the worker to provide care.

    The bill establishes a Task Force on Work and the Family to study the costs and benefits of family disability leave to workers, their families, employers, and the public. The task force is charged with issuing two reports: one report, to be issued not later than June 1, 1998, evaluating the effects of the provisions of the bill on the State disability benefits fund and making recommendations regarding any needed changes in the financing of the program; and the second report, to be issued not later than June 1, 2001, evaluating the costs and benefits of the act for all of the concerned parties and making recommendations regarding whether to continue or modify the provisions of the bill after the bill's sunset date of December 31, 2001. The task force is authorized to determine the total amount of any expenses, not exceeding $200,000, needed to carry out its duties, which will be charged as an administrative expense of the temporary disability insurance program.

    The bill also requires that all moneys that were borrowed from the State disability benefits fund pursuant to P.L.1994, c.112, and have not yet been repaid be repaid on January 1, 1997.

 

 

                             

Provides family disability leave.