New Jersey

Be in the Know: New Rules on Leave

New Jersey requires paid medical leave (PML) and paid family leave (PFL) income replacement benefits for eligible workers who need time off from work for qualifying reasons. These programs are commonly referred to as Temporary Disability Benefits (TDB) and Family Leave Insurance (FLI).

Coverage and cost

Learn more about your state rules and eligibility.

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Covered employers

Employers must participate in these State public insurance programs and deduct payroll taxes for employees working in NJ, or employers may choose to provide employees coverage through a private insurance plan that meets NJ requirements. The federal government is exempt. Temporary Disability Insurance is optional for local governments (for example counties, municipalities, and school districts).

Coverage options

State plan or state-approved private plan

Cost

Paid medical leave:

  • Employer: Rate varies from 0.1% to 0.75% of $41,100 wage cap
  • No Employee contribution required

Paid family leave:

  • 0.06% of $156,800 taxable wages (100% employee funded)

Employer funds the additional cost of the private plan above the employee maximums. The employer can pay all or part of the employee contribution.

Employee eligibility

Worked 20 weeks earning at least $260 weekly or have earned a combined total of $13,000 in the base year.

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Leave reasons

Caring for a family member, bonding, safe leave and medical.

Job protection

NJ PML and PFL is not job protected. Job protection may be provided through the New Jersey Family Leave Act (NJ FLA).

Other protections and provisions

Employees may elect to use (employer cannot require) available vacation/ PTO at 100% pay before using PFL benefits.

Leave for bonding must be taken in increments of 1 day or more.

Benefits

  • 85% of average weekly wage to $1,025 maximum weekly benefit
  • Paid medical leave: 26 weeks maximum but capped at one-third base year wages. 7-day waiting period
  • Paid family leave: 12 weeks maximum but capped at one-third base year wages. No waiting period
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Timeline and key dates

Effective July 1, 2009

Need more information?

Visit New Jersey’s website for additional details.

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How Unum can help

Unum offers the New Jersey paid medical leave (PML) insurance plan, but does not offer the New Jersey paid family leave (PFL) insurance plan. Unum does administer an employer’s self-funded New Jersey PML plan, but does not administer an employer’s self-funded New Jersey PFL plan.

Have questions?

Reach out to our sales team to learn more about Unum state PFML and absence management solutions.

The Unum insurance plan is underwritten by Unum Insurance Company. The policy or its provisions may vary or be unavailable in some states. The policy exclusions and limitations which may affect any benefits payable. See the actual policy or your Unum representative for specific provisions and details of availability.