The State of New Jersey’s Department of Labor has been struggling to set premiums after their legislature approved substantial increases in benefits for Paid Family and Medical Leave programs in February of 2019.
According to a NJ.com article, workers will pay more than had originally been estimated by their Department of Labor and Workforce Development in April in an effort to build up the balance required to pay claims.
“Estimating how much reserve we need was especially difficult this year because of the substantial expansion of benefits at mid-year, and uncertainty over how many more residents might apply,” said a department spokesman.
Washington state is facing similar difficulties as they begin to pay out benefits for their new PFML program. Applications in the first three weeks of 2020 were what they expected in the first three months, and that shows no sign of subsiding.
This news comes as no surprise to those who have voiced concerns over PFML mandates as they are introduced, debated, and implemented around the country. The various provisions imposed on these complex programs by advocates and legislators make the risk management required of state agencies on such a large scale more than challenging. Once established, the fund must be kept solvent. Workers across the state ultimately bear that burden.
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