Gov. Phil Murphy said he wants state workers to collect more while on parental leave. Assemblywoman Nancy Muñoz’s bill would expand that to private sector workers. (Getty Images)
During his annual state of the state address last week, Gov. Phil Murphy proposed a multimillion-dollar plan to expand the amount a state worker can collect while on parental leave.
But at least one lawmaker thinks all workers should benefit. Assemblywoman Nancy Muñoz (R-Union) is behind a bill that would double the amount of paid time off workers can take under the state’s family leave law and offer all of them more money during their leave.
“We need to make it better for everyone, not just state workers, but everyone. Because the thing is, the taxpayers will all benefit from this if they’re employees, and not just state workers,” Muñoz, a registered nurse, told the New Jersey Monitor.
Under current law, a worker eligible for family leave receives 85% of their average weekly wage, to a maximum that is set annually (in 2025, it’s $1,081). Muñoz’s bill would increase the percentage to 100%, with the max being $1,544. Current law allows for 12 weeks of family leave, while Muñoz’s bill would boost that to 24.
Workers pay a tax that covers their pay while they are on leave. While Murphy’s plan for state workers would be included in his next budget proposal and would cost between $6 million and $12 million a year, according to NJ Advance Media, Muñoz’s bill, called the Cradle Act, would adjust workers’ tax contributions to pay for higher benefits.
Her bill would require labor officials to report proposed tax rates to a joint legislative budget committee for its approval, and it would mandate an annual report from labor officials on these tax rates. Muñoz said she wanted this provision because of a $442 million shortfall in the state disability fund labor officials revealed to lawmakers last year.
The bill would also require people to receive their benefits within 21 days of approval. Muñoz said she spoke with a woman who didn’t receive benefits until the second-to-last week of her leave, so her family was “virtually living on one person’s paycheck for that entire time.”
If people opt for up to 24 weeks of leave, their benefits would be a prorated amount for however many weeks they take, Muñoz said. It wouldn’t cost people more to take the 24 weeks, she added.
Muñoz’s bill would apply to parents of newborns and people who leave work to take care of family members who are sick or injured. She explained that as a mother of five and grandmother of five, it’s important for New Jersey workers to prioritize time with family and know they’re going to be fairly compensated.
“I’m certainly aware of the world around me, and plenty of people I interact with are having children or they’re taking care of elderly parents,” she said. “I think we need to take a deep dive into this and see how we can make it better.”
There is no estimate yet for how much Muñoz’s bill would cost to implement.
If passed and signed into law, Muñozz’s bill would go into effect immediately. An Assembly companion bill has yet to be introduced.
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