Perhaps you're expecting a child.
Or perhaps you need time off to care for a sick relative.
Under both situations, you are entitled to receive benefits from the New Jersey family leave insurance program, which will reimburse some of the wages you will lose while you are not working.
New Jersey is one of a few states that has such a program. But the program, which has been around for a decade, has been underutilized because it is not well publicized and because its reimbursements are too stingy, experts say.
In its first seven years, family leave insurance paid out nearly half a billion dollars in benefits on more than 200,000 claims. About eight in 10 claims were for maternity leave, while two in 10 were to take care of a family member.
Gov. Phil Murphy will sign a bill into law Tuesday completing a long-awaited expansion of the paid family leave program.
"On Tuesday in Piscataway, I'll sign into law sweeping legislation expanding paid family leave, a huge win for working families and our economy," the Democratic governor tweeted last week. "No one should have to choose between earning a paycheck and spending time with a newborn child or caring for an ailing relative."
This bill increases how much money you'll receive during your time off and how long you can collect benefits. Those expansions will take effect July 1, 2020. Other changes to the program include which family members can qualify as caregivers and whether your employer has to have a job waiting for you when you return to work. Those benefits will roll out sooner.
The nonpartisan state Office of Legislative Services estimates insurance claims paid out will increase by $277 million to $363 million a year once the expansion is fully implemented.
The bill Murphy will sign Tuesday sets aside $1.2 million to advertise and promote the program.
The state program can supplement employer-sponsored insurance, such as short-term disability.
(Patrick Semansky | AP Photo)
Who is eligible?
You’re eligible to receive benefits if you are paying into the program through an automatic payroll deduction at work.
You must also have to have been working for at least 20 weeks with at least $172 in weekly wages or you have to have earned at least $8,600 in the preceding 12 months.
You can apply for insurance benefits to care for a seriously ill family member or a newborn or recently adopted child.
(Julio Cortez | AP Photo)
How is it funded?
By you!
The program is completely funded by New Jersey workers through a payroll deduction, similar to how you pay into unemployment insurance and temporary disability insurance funds.
This year, every worker will contribute .08 percent on the first $34,400 of their taxable wages — up to $27.52.
This bill would adjust the formula for calculating the deduction to tax the first $131,000 in wages. It’s not clear exactly how much more those working in New Jersey would pay because the rate is changed each year to meet the program’s needs.
How much money will you get?
This law will allow you to receive 85 percent of your weekly wage up to a maximum of $860 per week.
You will receive a prepaid debit card in the mail.
This is a big boost over the program’s current limitations, under which you can receive benefits equal to two-thirds of your weekly wages up to $650 a week.
The state determines your weekly wage based on an average of the last eight weeks before you start your leave.
Critics have long advocated for better benefits, saying the low reimbursement levels shut out many low- and middle-income families who can't afford to get by on just a fraction of their wages.
How quickly does the program pay out?
This has been another criticism of the state Family Leave insurance program.
In 2017, the then-acting labor commissioner said it could take 25 to 45 days for someone who filed by mail to receive a determination on their application, and then it took additional time for them to actually receive their compensation. Online filers can receive a decision in 14 days.
Under the revamped program, you will no longer have to use your own paid time off before becoming eligible for state benefits.
There also are new laws taking effect later this year meant to cut down on those processing times.
Expectant mothers in New Jersey are eligible for up to four weeks of temporary disability benefits before they deliver. One law, that will take effect Oct. 4, requires the Department of Labor to automatically process an application for family leave insurance after that worker applies for temporary disability benefits, allowing the worker to submit only one application.
Another law, that will also take effect Oct. 4, allows workers to submit claims for pregnancy-related temporary disability insurance and family leave insurance up to 60 days before the actual claim period if they know when they expect to begin their work leave. The law also applies to scheduled medical procedures.
Here's another really important change: You will be able to collect benefits for up to 12 weeks. That's double the current six-week limit.
How do you define family?
This overhaul of the insurance program expands the list of family members newly covered as caregivers. Siblings, grandparents, grandchildren and parents-in-law, among other relatives, will now qualify.
Under the current law, only children, parents, spouses, domestic partners and civil union partners were eligible.
You may also qualify for benefits to care for a family member who is a victim of domestic or sexual violence.
These changes will be effective immediately.
(Lynne Sladky | AP Photo)
Is your job protected while you're on leave?
In addition to replacing some of your income while you’re on leave, the paid family leave program also guarantees you’ll have a job when you return — for some workers.
The bill Murphy will sign into law confers job protections to employees of businesses with at least 30 employees. This change is effective June 30.
The current version of the program only offered job protections to employees at firms with 50 or more employees.
The expansion makes new allowances for people working more than one job, allowing you to take leave from one job and receive benefits while continuing to work a second job, according to the New Jersey Time to Care Coalition. This will take effect in July 2020.
(Mark Lennihan | AP Photo)
Are you taxed on the benefits?
Family leave benefits are subject to the federal income tax but not the state gross income tax.
The application includes an option to have 10 percent of your benefits withheld for taxes.
Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Find NJ.com Politics on Facebook.
Ad Choices