New Jersey

Below we cover recent and/or upcoming changes to the New Jersey family and medical leave programs.

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) and New Jersey Family Leave Act (NJ FLA)

What is the Update?

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI).

Effective 1/1/22:

Employees will continue to receive up to 85% of their average weekly wage. However, the maximum weekly benefit is increased from $903 to $993.

The contribution rate decreased from 0.47% to 0.14% for TDI and from 0.28% to 0.14% for FLI. The employee taxable base for both programs will be $151,900 which means the maximum employee contribution will be $212.66 for each program ($425.32 total).  The taxable wage base for employers increased from $36,200 to $39,800. Employees contribute to the cost of Family Leave Insurance. Both employers and employees contribute to the cost of Temporary Disability Insurance.  To understand more about how the New Jersey Labor and Workforce Development determines employer contributions for TDI, see here.

New Jersey Family Leave Act (NJ FLA)

Update 8/16/22: details of the NJFLA are required to be provided to employees on a yearly basis via a specific notice. See the “Notice Requirements” section below for a link to the notice that needs to be provided to employees. Employers can provide the notice to employees in a number of ways, such as including it as a paycheck insert, providing it to new hires, attaching it to an employee manual or policy handbook, as a flyer distributed at an employee meeting, by email; and via an internet or intranet site, provided that all employees have access, and the employer customarily posts notices to affected employees or other affected individuals on the site. The Larkin Company recommends simply including the notice within your handbook.

Handbook/Policy Updates

Updates to your company handbook may need to be made if you include New Jersey state-specific income replacement benefits information. 

Notice Requirements

No additional requirements for 2022 for the income replacement benefits in New Jersey. Employers are still required to post form PR1 and PR2 in a conspicuous location.

The updated NJFLA law poster, referred to above (see the 8/4/22 update), can be found here:https://www.njoag.gov/wp-content/uploads/2022/07/Family-Leave-Act.pdf 

Larkin Action

The Larkin Company has updated our leave packets to include the 2022 updates.

Further Company Considerations 

We recommend you confirm with your payroll team that they have updated your payroll system to collect the decreased employee contributions.  

Ensure you are offsetting any salary continuation/company top-up pay aligned with the new benefit rate maximum, where applicable.  The Larkin Company will adjust offsets for any top-up (leave of absence pay) calculations or STD, accordingly, if we handle these services for you.   

*Reminder: claims that start in 2021 will be awarded 2021 benefit rates. Claims that begin on or after January 1, 2022, will be eligible for the new benefit rate. 

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Disclaimer

The Larkin Company has taken reasonable steps to ensure the accuracy of the information on this page, however we make no representation or warranty of any kind as to its accuracy or completeness. These resources should not be construed or substituted for legal advice. Accordingly, before taking any actions based upon such information provided herein, we encourage you to seek competent legal advice from a licensed attorney or appropriate professionals.