M E M O R A N D U M

TO: Members of the Assembly Labor Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:  A-5166 (Quijano/Reynolds-Jackson)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to share our concerns with A-5166 (Quijano/Reynolds-Jackson), which revises the law concerning family leave to apply to businesses of all sizes. The CCSNJ understands and truly appreciates the sponsor’s intent, however we are extremely concerned about the undue burden this bill will place on small businesses and those businesses that make New Jersey’s Main Streets thrive.

Current law states that employers with 30 employees or less do not have to hold an employee’s job for them if they go out on extended leave. However, as currently written, A-5166 (Quijano/Reynolds-Jackson) removes the small business exemption altogether over a three-year, phased-out period. Once the three-year phase out concludes, small “mom-and-pop shops” will be treated the same as large corporations under the family leave law. This means that the job of the employee out on leave will be held for them upon their return to work, and small employers will be forced to find temporary help as a bridge until the individual returns from leave. And it goes without saying that it will be extremely difficult for small businesses with limited employees and limited resources to identify a worker that would be willing to take a job temporarily with no definitive end date.

The CCSNJ adamantly agrees with the sponsor that no employee should have to feel that they must forgo their family leave due to fear of job loss. However, with most small businesses struggling to maintain their current workforce, this legislation will make it difficult for small enterprises to operate. Given the difficult labor market, it is incredibly challenging for small businesses to find skilled workers, let alone those who are willing to take on critical roles on a temporary basis. According to the National Federation of Independent Business (NFIB) October Small Business Economic Data Report, forty-three percent (seasonally adjusted) of owners reported job openings that were hard to fill, which was unchanged from September and remains historically very high.

The CCSNJ would like to respectfully recommend that the sponsors of the bill take into consideration the challenges of operating a small business in the current environment, one which consists of rising costs and supply chain issues, on top of the aforementioned labor market issues. Instead, we implore state government to focus on identifying ways to ease the burdens on small businesses, which will lead to more entrepreneurs, start-up companies and innovation in New Jersey.

Thank you for allowing the CCSNJ to express our concerns with A-5166 (Quijano/Reynolds-Jackson).