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In This Issue

It's Official:  NJ Paid Family Leave Act

New Jersey has become only the second state in the nation to mandate a broad paid family leave program for employees. (California is the only other state that offers a paid-family-leave benefit. Washington has adopted a similar measure, but it will not take effect until after New Jersey's.) Governor Corzine signed the mandate into law on May 2. The legislation extends temporary disability benefits commencing July 1, 2009.  Eligible employees will be able to collect up to six weeks of paid time off.   Eligible employees will be able collect up to two-thirds of their weekly salary during the leave period (capped at $524) subject to a one-week waiting period.  Commencing on January 1, 2009, benefits for this new law will be funded through new employee payroll taxes, estimated to be $33 annually per employee.

The leave applies to nearly all private and public employers and may be used by an employee to:

(1) bond with a newborn or adopted child; or
(2) care for the serious health condition of a family member.

Paid family leave may never be used for your employee’s own “serious health condition.”

Employers should be mindful of two important dates:

- On January 1, 2009, employers will be responsible for remitting to the state the new employee tax authorized by the program.
- On July 1, 2009, employees will be eligible to take paid family leave benefits.

Additional requirements involving mandatory employer notices, posters and forms will be determined by regulation in the future.

 

This newsletter and the information contained therein is provided for informational purposes only and is not intended to be legal advice.
Telecommuting:  A Legitimate Scheduling Option in Today's Society

“Pain at the pump” seems to be a widely used buzz phrase to describe the ever-rising gas prices all across the country. As one way to combat the spike in fuel costs for employees, many employers are offering commuter benefits, such as telecommuting. This trend once spiked in the 1990’s for professionals who could do their jobs at an offsite location. As gas prices soar, pollution increases and traffic congestion reaches new heights, this option is more popular than ever.

Telecommuting means that employees work from home or at another alternate location and communicate with their employer using electronic means instead of physically being present on a jobsite. Many companies cite tremendous benefits from this practice, both for the organization and their workers. For instance, according to business network site Bnet.com, Sun Microsystems, Inc. offers a telecommuting option to its employees. The average employee works from home two and a half days a week, which translates into a significant decrease in carbon dioxide emissions when their commutes are cut in half. This option also saves employees an average of two and a half weeks of commute time per year and translates into a $1,700 raise for each employee, without costing Sun Microsystems, Inc. one penny. This is because the average employee saves that much in gas and wear and tear on their car.

Here are some other benefits to offering a telecommuting option to employees:

Benefits for the Employer

  • Reduces workplace costs such as monthly heating and cooling costs and water and sewer bills.
  • Companies save money on office space when employees are not physically present. According to the International Telework Association & Council (ITAC), AT&T saves $25 million per year in office space costs because of offering a telecommuting option.
  • Increases employee productivity because the home environment is often more inviting and comfortable as compared to the company environment. ITAC reports that AT&T saves $65 million as a result of increased productivity by its teleworkers.
  • Employees can work during the time that they would normally be driving to and from work.
  • Employees have fewer interruptions and less time to socialize with coworkers.
  • Reduces absenteeism and tardiness amongst employees.
  • Serve as a great employee retaining and recruiting tool because individuals value this flexibility.
  • Cuts labor costs to combat the cost of commuting. According to the Department of Transportation (DOT) Board, it costs 50 cents per mile to operate a car and an average annual commute is roughly 213 hours. That makes commuting quite costly.

Benefits for the Employee

  • Option makes dealing with the work/family balance easier for working parents and individuals caring for elderly family members.
  • Working from home is generally easier for people with disabilities.
  • Saves money on gas, parking, car wear and tear, etc.
  • Employees spend less money on food because they are eating lunch at home as opposed to grabbing something from a restaurant.
  • Employees spend less on business attire, which is generally more expensive than casual clothing worn at home.

On top of these benefits to both employers and employees, telecommuting means less traffic congestion and pollution. In addition, since employees can work from literally anywhere using technology, this may reduce overpopulation in more urban areas.

Continued on page 3, Telecommuting

Changes to NJ's Dependent Age 30

On July 7th, 2008, Governor Corzine signed progressive legislation expanding NJ FamilyCare, which also initiated a reform to Dependent Coverage for Dependents 30 Years of Age or Younger.  The legislation made changes to eligibility criteria, terms, and administration of continued dependent coverage for dependents 30 years of age or younger.  

  • Requires proof of prior, creditable health benefits coverage or receipt of benefits from another group or individual benefits coverage source to be eligible to elect or reinstate continued dependent coverage. 
  • Once an individual elects dependent coverage, that coverage is not ended until the individual reaches age 31.  The cut off for electing coverage remains 30 years of age; the bill clarifies that the dependent coverage remains in effect while the individual is 30 years of age.
  • Health insurers and the State Health Benefits Program (SHBP) must provide notice to the parents of dependents to increase awareness of continued dependent coverage