Yesterday, ERIC submitted written testimony to the New Jersey Senate Budget and Appropriations Committee on Assembly Bill 1827 (‘A1827’). A1827 would establish paid sick leave in the state. ERIC’s testimony addressed three main concerns: (1) carryover, (2) recordkeeping, and (3) definition of a family member.
Chief among these was the mandate to carryover or payout unused leave, regardless of whether an employer provided leave through an accrual system or all at once at the beginning of the benefit year. ERIC commented on how mandating carryover or paying out unused leave forces employers to make alterations to other employee benefit policies. We stated how most states have recognized the interaction of frontloading and carryover provisions, and how it can be beneficial to both employers and employees if implemented correctly. ERIC recommended that A1827 be amended to mandate carryover or a payout only in instances where the employer does not frontload leave at the beginning of the benefit year.
On the other two issues, ERIC advocated for A1827 to more closely follow other jurisdictions that have enacted paid sick leave laws (i.e., reducing the retention of relevant documents from five to three years, and narrowing the definition for family member).
A companion bill was introduced in the Senate, S2171, at the beginning of the month but has not made the same progress as A1827.
ERIC will continue to weigh in on this measure and work with lawmakers to ensure it does not burden large employers already providing adequate paid sick leave.
Article by Bryan Hum, Retirement and Compensation Policy Senior Associate