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A new law allowing employees to take as long as six weeks of paid time off goes into effect today.

That means workers who need to care for a sick relative, a newborn baby or newly adopted child can begin doing so while still drawing a paycheck - similar to going on disability leave.

But the financial impact of paid family leave insurance on businesses and the state remains to be seen, as New Jersey is just the third state, after California and Washington, to have enacted such legislation.

So far, the state has received 92 family leave claims, which will be processed today, said a spokesman for the N.J. Department of Labor and Workforce Development, with the first checks likely going out in the next couple of weeks.

By July 2010, the state estimates between 30,000 to 40,000 workers will have tapped into the program.

Employees started funding it in January through an automatic payroll deduction that will amount to no more than $26.01 per worker in 2009, said DOL spokesman Kevin Smith, adding that about $36 million has been collected for the fund as of last week. (There is no specific line on a pay stub that says "paid family leave," rather it is included in the state disability insurance tax, Smith said.)

"We'll probably have a better feel for whether workers (will participate) a few weeks down the road," he added.

Meanwhile, opponents of paid family leave, which was passed last year with the backing of Gov. Jon S. Corzine, continue to criticize the program.

"This is the worst possible time to implement a new social program," said Philip Kirschner, president of the New Jersey Business & Industry Association.

Kirschner said he is worried about smaller businesses because they have no experience with such a law. Businesses with 50 or more employees already follow federal and state family/medical leave acts that let workers take 12 weeks of unpaid leave.

"For employers under 50, which is 90 percent of the businesses in this state, this is brand-new territory for them," Kirschner said. "And this is really going to effect those employers who use shifts. You have to fill a shift, and when people aren't there, it's very, very difficult. The work still needs to get done in this economy, and if you can't get it done for a customer, they'll go somewhere else that can."

But there may be some reluctance among employees about participating in the program - at least for the full six weeks - because of the recession, Kirschner said. For those who go out on paid family leave, they can only earn two-thirds of a weekly salary - capped at $546 per week for 2009.

Still, advocates of the law say the chance for workers to decide whether or not to take paid leave is crucial.

"Overwhelmingly, people work instead of doing the things they need to do for their family because they can't afford to take the time off," said Julia O'Brien, president of the Business and Professional Women of New Jersey, a statewide networking and lobbying group.

Elaine Hartman, of Absecon, said she could have benefited from paid family leave in 2007 while taking care of her 29-year-old daughter, Elizabeth.

Hartman was able to get unpaid time off through her employer, but the family was limited with only her husband's income supporting them.

It was important for the couple to be in the Philadelphia hospital where Elizabeth was battling cancer for the second time, even if paying for hotel rooms, meals and medical supplies became difficult.

Now, almost two years after her daughter's death, Hartman said she is pleased to see the law in effect.

"I think the family leave act for people thrown into a similar situation would be a tremendous help," she said Tuesday.

For more information on paid family leave, visit the DOL Web site at lwd.dol.state.nj.us and click on "family leave insurance" under "important notices."

E-mail Erik Ortiz:

EOrtiz@pressofac.com

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