New Jersey 'Sandy' Law Preserves Employee Eligibility for Leave and Benefits

To be eligible for leave under New Jersey's Family Leave Act (FLA) or the Security and Financial Empowerment Act (SAFE Act),1 an employee must have been employed for at least 12 months and have worked at least 1,000 base hours in the immediately preceding 12-month period. In the wake of Hurricane Sandy, Governor Christie signed a law permitting employees who are furloughed or laid off because of a "state of emergency"2 to credit up to ninety calendar days of that time as if it were time worked for purposes of determining whether an employee has met these eligibility requirements. The law applies to any furlough or layoff due to a "curtailment of operations" because of a state of emergency declared after October 22, 2012 (thus encompassing employees who have been furloughed or laid off due to Hurricane Sandy, which made landfall on October 29, 2012). To calculate the base number of hours to be credited for each week the employee was on layoff or furlough, the employer must use the average weekly hours the employee worked during the rest of the 12-month period.

The new law also provides that an employee will be able to use up to thirteen weeks as "base weeks" for purposes of meeting eligibility requirements for temporary disability and family leave insurance benefits (but not for purposes of calculating the "average weekly wage").3

This law took effect immediately upon the Governor's signing it on January 17, 2014. New Jersey employers should update their policies and procedures for FLA and SAFE Act leave to reflect the provisions of this new law and ensure compliance. Similarly, employers who have private plans to provide New Jersey-mandated disability and/or family leave insurance benefits should make sure that the eligibility standards for such plans and policies satisfy the new law's requirements...