Why so few N.J. parents are taking paid family leave

State Budget New York

People hold signs and listen to speakers during a rally for paid family leave in New York in March 2016. (Seth Wenig | AP Photo)

(Seth Wenig)

TRENTON -- Just 12 percent of New Jersey's eligible new parents are receiving family leave benefits, according to a new report aimed at boosting enrollment numbers.

Left-leaning Trenton think tank New Jersey Policy Perspective on Thursday issued an analysis of the paid family leave program that allow workers who miss work to take care of a sick relative, newborn or newly adopted child to collect some of that missed pay.

But the limits of the program, from the cap on weekly wages to the time limits, keep maternity and paternity leave out of reach for many low- and middle-income families, the report said.

Caregivers are even less likely to participate.

New Jersey is one of just a few U.S. states to offer family leave insurance, which is funded through small employee payroll deductions. A family member can receive two-thirds of the wages -- up to $633 a week -- for six weeks.

"For many New Jersey families, taking that kind of financial hit ... is simply not possible without falling behind on bills and/or being unable to afford everyday expenses," according to the report's author, Amy Dunford.

A worker making $15 an hour, or $600 a week, receives two-thirds of their pay, or $400 a week.

A family that's already struggling can't afford to get by on even less, Dunford wrote.

"The bottom line: $633 a week is not enough to make ends meet in New Jersey," the report said. "The state's paid family leave policy puts many workers below the poverty level for the duration of their leaves, and pushes people who are already struggling deeper into poverty."

From 2009 to 2015, family leave insurance has paid out nearly half a billion dollars in benefits for more than 200,000 claims. About eight in 10 claims are to bond with a child, while two in 10 are to take care of a family member.

Raising the cap could be the silver bullet to enticing more people to enroll, the report said. In California, the weekly wage cap is $1,173, and in Rhode Island it's $817.

In those states, participation rates aren't strikingly better: 17 percent in California and 12 percent in Rhode Island, according to the report.

That change would help middle-class families, while raising the two-thirds limit on wage replacement would help lower-income families, it said.

Recommendations in the report also include expanding what family members can participate, and installing job protections. Paid family leave does not guarantee a worker's job when they return, and the federal Family Medical Leave Act only offers that protection for some workers.

Senate President Stephen Sweeney (D-Gloucester), who sponsored the original paid leave program, also wants to extend the benefits window to 12 weeks and the maximum payout.

Separately on Thursday, Sen. Teresa Ruiz (D-Essex) pushed the Department of Labor and Workforce Development acting commissioner at a budget hearing to improve its speed in processing applications for family leave and temporary disability insurance.

Acting Commissioner Aaron Fichtner said it can take 25 to 45 days for someone who files by mail to receive a decision on their application, and then it takes additional time for them to receive their compensation. Online filers can receive a decision in 14 days.

New parents shouldn't have to wait until they return to work to receive their money, and caregivers, who may not have had time to plan for their absence from work, shouldn't have to wait weeks and weeks, she said.

"If you're someone who lives check to check, a 25-to-45 day timeframe for review, just to be notified whether you're going to receive benefits or not, is something that we can't afford to have here in the state of New Jersey. And we must get better at it," Ruiz said.

Fichtner said the department is hiring additional staff to improve processing times, is contacting employers to encourage their workers to file online, and will look into allowing employees to open their claim before their leave begins.

Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Find NJ.com Politics on Facebook.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.