On January 12, the New Jersey General Assembly passed S-2950/A-3451 (Moriarty/Zwicker/Quijano/Reynolds-Jackson/Coughlin), which would expand job-protected paid family leave to employers with 15 or more employees. Under current law, these requirements apply only to businesses with 30 or more employees. If signed into law, the bill would extend coverage under the state’s Family Leave Act (FLA) to a new group of very small businesses.

CCSNJ opposed this legislation out of concern that, while well-intentioned, it would place significant and disproportionate burdens on the smallest employers - many of whom lack the staffing capacity and financial resources needed to comply with additional regulatory mandates. Despite the Chamber’s opposition, the bill passed the Assembly by a vote of 46–25 and previously passed the Senate 24–12.

The Legislature also passed A-5358 (Haider/McCoy/Kane), which would significantly expand the New Jersey Secure Choice Savings Program by lowering the participation threshold from businesses with 25 or more employees to all employers with one or more employees. Again, CCSNJ opposed this measure due to serious concerns about its impact on small and micro businesses.

While expanding access to retirement savings is a worthwhile goal, applying this mandate to the smallest employers would introduce new administrative and compliance obligations that many are not equipped to manage. There is no shortage of retirement savings options currently available to workers through private providers, which offer the expertise necessary to advise both employers and employees on plan choices and related tax implications. Additionally, CCSNJ has long maintained that participation in any retirement plan should be voluntary and employee-driven. Employees should be given the opportunity to opt in, rather than being automatically enrolled through an opt-out structure, as the Secure Choice program is currently designed.

Both bills now await action by the Governor.