The Chamber of Commerce Southern New Jersey (CCSNJ) would like to share our concerns with S-2950/A-3451 (Moriarty/Zwicker/Quijano/Reynolds-Jackson/Coughlin), which would gradually lower the size threshold for employer coverage under the state’s Family Leave Act (FLA) until it ultimately applies to employers with as few as five employees. While CCSNJ understands and respects the sponsors’ intent to ensure that workers can take needed family leave without fear of job loss, we are extremely concerned this proposal, while well-intentioned, would impose significant and disproportionate challenges on the smallest employers in our region.

Under current law, employers with 30 or fewer employees are not required to hold a job open for an employee who takes extended family leave. S-2950/A-3451 would remove this long-standing small-business exemption over a two-year phase-out period, requiring even the smallest “mom-and-pop” operations to comply with the same reinstatement obligations as large corporations. Once fully phased in, the bill would require these employers to hold open a position for an employee on leave, forcing them to find temporary staffing solutions. This expectation is simply unrealistic for businesses with limited staff, limited resources, and limited operational flexibility. Small businesses already face hiring challenges in today’s labor market, and locating temporary workers without a set end date adds an additional layer of difficulty.

CCSNJ wholeheartedly agrees that employees should be able to take family leave without fear of jeopardizing their employment. However, this bill unintentionally puts small businesses in an impossible position. When one employee represents 20% or more of the workforce, for example, their extended absence fundamentally disrupts day-to-day operations and the ripple effects of an extended leave are far greater than in a larger organization with deeper staffing capacity.. Temporary replacements are rarely feasible and unlikely to be available. Remaining employees become overburdened. Businesses may be forced to reduce hours, turn away customers, or limit services. For many small employers already grappling with rising costs, inflation, and supply chain pressures, this bill could push them to a breaking point.

The bill may also discourage hiring. Faced with expanded legal and operational obligations, small employers may become more cautious in bringing on new staff or growing their workforce. This hesitation could disproportionately affect entry-level and seasonal employees. New mandates of this magnitude risk slowing job growth and discouraging entrepreneurship at a time when New Jersey should be encouraging more small businesses to open and expand.. A one-size-fits-all mandate does not reflect the real differences between large employers with robust HR departments and the small enterprises that make up the backbone of South Jersey’s economy.

Thank you for allowing the CCSNJ to express our concerns with S2950/A3451 (Moriarty/Zwicker/Quijano/Reynolds-Jackson/Coughlin).