Family Leave Insurance for New Jersey s Workers

1. NJ Time to Care Coalition 1 Family Leave Insurance for New Jersey’s Workers LOGO AND COLORS NEED TO BE CHANGEDLOGO AND COLORS NEED TO BE CHANGED

2. NJ Time to Care Coalition 2 The Problem in a Nutshell The need for family caregiving is great and will only grow Jobs in the U.S. consume more and more of our time time Most of these jobs come with no paid family and medical leave Our current Social Safety Net was designed for the single breadwinner economic model POLLING DATA: --Nearly 9 in 10 (89%) of parents, and 8 in 10 (84%) of all adults say they support expanding unemployment or disability insurance as a vehicle for paid leave. --79% of working women believe access to paid family and medical leave is more important than increased pay, promotions and job flexibility --Workers’ number one career concern is time for family. POLLING DATA: --Nearly 9 in 10 (89%) of parents, and 8 in 10 (84%) of all adults say they support expanding unemployment or disability insurance as a vehicle for paid leave. --79% of working women believe access to paid family and medical leave is more important than increased pay, promotions and job flexibility --Workers’ number one career concern is time for family.

3. NJ Time to Care Coalition 3 More Affordable elder care facilities are filling up The number of available full-time caregivers is in decline This Slide is only an outline for the next few slides, so go through the slide very quickly! Note for Bullet # 3 (“The population….”) – The number of working mother’s and “tag-team” parenting are continually increasing This Slide is only an outline for the next few slides, so go through the slide very quickly! Note for Bullet # 3 (“The population….”) – The number of working mother’s and “tag-team” parenting are continually increasing

4. NJ Time to Care Coalition 4 Supply of Full-Time Available Caregivers is Shrinking Mothers with children under 6 are the fastest growing segment of the workforce Nearly 1 in 2 working women are their families’ primary breadwinner Proportion of fathers who are sole wage earners has dropped from 51% in 1977 to 33% in 2002 78% of the workforce consists of dual-earner couples

5. NJ Time to Care Coalition 5

6. NJ Time to Care Coalition 6 Institutional Care Options Recede ADULT CARE: Demand for care by institutions (e.g. home-health and nursing care) will far exceed supply in the next decade (demand will grow by 50%) INFANT CARE: Cuts to state infant care programs threaten to continue, further widening the gap between the supply and demand for infant care . Infant Development is at risk

7. NJ Time to Care Coalition 7 Demand is expanding:  The Population Needing Care Is Growing Millions of Americans each year face a serious illness or disability They rely heavily on family caregivers to help them recover from or manage this illness. Karen: You indicated that you have language for this slideKaren: You indicated that you have language for this slide

8. NJ Time to Care Coalition 8 Family & Medical Leave Act (FMLA) FMLA was signed into law by President Clinton in 1993 It covers employees in companies with 50 or more employees who have worked for that employer for 12 months or more It provides 12 weeks of job-protected leave a year for: Recovery from one’s own serious illness Serious illness of a close family member Parental leave to bond with a new child About half of all workers are covered by FMLA Job protected leave for serious illness of parent, spouse or partner, child under age of 18 years About half of all workers are covered by FMLA Job protected leave for serious illness of parent, spouse or partner, child under age of 18 years

9. NJ Time to Care Coalition 9 How the FMLA Helps Working Americans and their Families Over 50 million Americans have taken leave under FMLA since its passage in 1993 42% of leave-takers are men 58% of leave-takers are women Most family leaves are over in 10 days or less Under the law, while on leave these workers covered by FMLA have: Guarantee of return to their own or equivalent job Health insurance (if they had before leave) Seniority accumulation

10. NJ Time to Care Coalition 10 Problems with Current Family Leave Laws FMLA and NJ FLA DO NOT cover all workers - nearly half of the private sector workforce isn’t covered UNPAID!!! Note for Presenter: The fact that Family Leave is unpaid leaves many workers with the difficult choice between work and family! In fact… (go to next slide)Note for Presenter: The fact that Family Leave is unpaid leaves many workers with the difficult choice between work and family! In fact… (go to next slide)

11. NJ Time to Care Coalition 11 Do Employees Get Paid by Using Other Types of Paid Leave or Benefits? Under FMLA, employers, NOT employees get to decide about using other benefits such as sick or vacation days Official Employer Policy: Use sick day -- if you have any left or any at all… Many workers have no leave benefits to use to care for a family member: Nearly 1 in 2 private-sector workers in the U.S. do not have a single day of sick leave In New Jersey, almost a quarter of small businesses and 18% of large businesses do not provide any sick leave This hits low-income workers the hardest Text needs to be shortened…Text needs to be shortened…

12. NJ Time to Care Coalition 12 Caregiving or a Paycheck? No-win Choices for Families Almost 4 in 5 (78%) of employees who need leave but don’t take it, do not take it because they cannot afford to Almost 1 in 10 (9%) of those who take leave without full pay are forced on to public assistance while on leave.

13. NJ Time to Care Coalition 13 Which Countries Have Paid Parental Leave? Bangladesh Botswana Brazil Cameroon Canada India Iran Mongolia Netherlands Norway Swaziland Sweden U.S. Zambia

14. NJ Time to Care Coalition 14 How the U.S. Stacks Up… 100% Pay: Bangladesh Brazil Cameroon India Netherlands Norway Sweden Zambia Partial Pay Canada – 50 weeks, 55% Botswana – 12 weeks 25% Iran, 16 weeks, 66% Mongolia – 17 weeks, 70% No Pay Swaziland U.S. <

15. NJ Time to Care Coalition 15 Existing Paid Leave Laws Federal – NONE States – Patchwork of laws 5 states with Employee Temporary Disability Insurance (NJ, CA, NY, RI, HI) 2 states with paid parental leave for lower income families (VT, MO) 2 states with sick leave to care for sick family members (HI, WA) 1 state with Family Leave Insurance (FTDI) law (CA)

16. NJ Time to Care Coalition 16 California’s Family Leave Insurance Program Expands CA’s existing Temporary Disability Insurance Fund to provide partial wage replacement to a worker who must take time to care for a seriously ill family member or newborn, adopted, or foster child Like CA, NJ also has an existing insurance fund that provides partial wage replacement while recovering from one’s own serious illness. And, like CA, NJ’s fund can be expanded to provide family leave insurance. California Paid Family Leave Statistics: -- The Fund is 100% employee funded -- Employees pay an estimated average of $27 a year (incl. admin costs) -- Those who take leave will bring home 55-60% of their wages (up to $728 per week in 2004) for up to 6 weeks. -- More than 13 million employees pay into and be covered under program – that’s about 10% of the nation’s civilian workforce. California Paid Family Leave Statistics: -- The Fund is 100% employee funded -- Employees pay an estimated average of $27 a year (incl. admin costs) -- Those who take leave will bring home 55-60% of their wages (up to $728 per week in 2004) for up to 6 weeks. -- More than 13 million employees pay into and be covered under program – that’s about 10% of the nation’s civilian workforce.

17. NJ Time to Care Coalition 17 Current New Jersey Law: NJ Temporary Disability Insurance Act (NJTDI) Covers nearly all NJ workers, including those who work for small employers (<50 employees) Provides cash benefits to workers who can’t work because of their own disability or serious health condition (includes pregnancy) NJTDI provides 2 types of benefit plans: State Insurance Plan: eligible employees receive 2/3 weekly salary up to $488 in 2006, for up to 26 weeks Private Insurance Plan: employer created plan -- benefit must be at least equal to State Plan Health condition must be certified by doctor Health condition must be certified by doctor

18. NJ Time to Care Coalition 18 The Opportunity for Paid Family Leave in New Jersey – It’s Time to Care! NJ’s existing TDI system offers a perfect framework for a family leave insurance program Senate Bill 2249 would expand the current TDI program into a family system California’s new law has shown us that this system works!

19. NJ Time to Care Coalition 19 A Family Temporary Disability Insurance Program in NJ (Senate Bill 2249) Senate Bill 2249 would provide a family temporary disability insurance system in New Jersey Costs: entirely paid by employees – workers make a small additional payment into TDI fund – from $0.28 per week for a worker making $7.15 per hour to $1.81 for someone making $90,000 or more. The average worker would pay less than a dollar Benefits: Up to 12 weeks of paid family leave per year; family leave insurance would replace 2/3 weekly wages – up to $488 per week in 2006 Slide Text needs to be condensed. Eileen’s analogy for the Cost of expanding TDI “From a pack of gum to the cost of a latte!”Slide Text needs to be condensed. Eileen’s analogy for the Cost of expanding TDI “From a pack of gum to the cost of a latte!”

20. NJ Time to Care Coalition 20 THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace.THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace.

21. NJ Time to Care Coalition 21 A Closer Look atSavings from Retention Increased Retention: Survey data show… 94% of leave-takers who are fully paid return to their same employer after taking leave 76% of those who are not paid do so - an 18% drop Increased retention means lower costs in hiring and training replacement workers. THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace. THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace.

22. NJ Time to Care Coalition 22 Paid Leave and Small Employers What paid leave means for small- and mid-sized employers (<50 employees): Increased retention when desired Cost savings from reduced turnover Increased ability to compete with larger employers in recruitment & retention of workers THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace.THIS SLIDE MAINLY FOR BUSINESS COMMUNITY If talking to Labor Unions about this slide: -- These factors give Unions a good bargaining tool during contract negotiations if they want to get Paid Family Leave Benefits at their workplace.

23. NJ Time to Care Coalition 23 Review…. The workplace is badly out of sync with the needs of our families Demographics are changing – demand for caregiving is increasing, but supply of caregivers is decreasing Families are struggling Workers are forced to choose between caring for their families & a pay check Family Leave insurance helps working families and the economy thrive We know it works – polls and state initiatives prove that this is the solution for our families

24. NJ Time to Care Coalition 24 NJ Time To Care MembersDiverse Coalition of Organizations Advocates for Children Women’s Rights Unions Caregiver Advocates Ethnic Rights Groups Religious Organizations Anti-Poverty Advocates Consumer Rights Groups Senior Citizens Advocates

25. NJ Time to Care Coalition 25 Interested in Getting Involved? Make sure your organization signs on to the NJ Time to Care Coalition Statement of Principles – you can sign on as an individual, too! Contact New Jersey Citizen Action or the Center for Women and Work to find out how you can get involved Share your stories – Let us know if you or someone you know has been affected by the lack of family leave insurance in NJ Also, let us know of any employers that support family leave insurance in New Jersey Ask your State Legislator to support family leave insurance

26. NJ Time to Care Coalition 26 For more information contact…. New Jersey Citizen Action Atif Malik, 973-643-8800 www.njcitizenaction.org Center for Women and Work Karen White, 732-932-4614 www.njtimetocare.rci.rutgers.edu National Partnership for Women & Families Taylor Hatcher, www.nationalpartnership.org Paid Leave Clearinghouse www.paidleave.org