July 6, 2020
TRENTON – The New Jersey
Department of Labor and Workforce Development
issued a
press release
on July 1 announcing that eligible New Jersey workers can take more time off and receive a larger percentage of their wages under the state’s Temporary Disability Insurance (TDI) and Family Leave Insurance programs (FLI).
Under both the TDI and FLI programs, eligible workers can now receive up to 85% of their average weekly salary, an increase from two-thirds, with a maximum benefit of $881 per week, up from $667.
In addition, workers can now receive up to 12 consecutive weeks of FLI benefits per year, which is double the previous six-week allowance. Workers who take intermittent FLI time off can claim up to 56 days, up from the previously permitted 42 days.
Claimants whose first day of leave is July 1 or later are eligible for the expanded benefits.
“New Jersey is a recognized national leader in workers’ rights and income-sustaining benefits programs, and the expansion of our generous benefits further demonstrates the Murphy Administration’s dedication to the health and well-being of our workers,” said Labor Commissioner Robert Asaro-Angelo. “These increased benefits will enhance income and job security for our state’s workers during the times in their lives when they need it most.”
“Workers should not have to risk losing their job or their income in order to take care of themselves and their loved ones during important life milestones or health adversities. We thank the Governor and our legislative partners for their dedication to New Jersey workers.”
Also new effective July 1 is an option for workers with more than one job to take leave from one employer while continuing to work for another, as long as their usual work schedule is not exceeded. Weekly benefit rates are based solely on wages earned from the employment from which the worker takes leave.
Workers can use FLI to bond with a new child or to care for any loved one who is blood-related or a family-like relation. TDI can be used for pregnancy, childbirth, or a serious health condition.
A law enacted last year (P.L. 2019, chapter 37) increased the level of wages subject to wage taxes effective January 1 for workers covered under the Temporary Disability and Family Leave Insurance programs to fund the increases in benefits. The taxable wage base is $134,900 for 2020 for workers contributing to these programs
To qualify for Temporary Disability or Family Leave benefits this year, an applicant must have earned at least $200 per week for 20 base weeks, or alternatively, have earned at least $10,000 during the base weeks. Benefit eligibility criteria are based on the state minimum wage in effect on October 1, 2019, when the minimum wage in New Jersey was $10 per hour for most employees.
Stay safe,
Don Kaiser, CPA
Principal
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
