New Jersey Chamber of Commerce Statements on Paid Leave

April 7, 2008 - Following Passage of Paid Leave in the New Jersey State Senate

Jim Leonard, Senior Vice President, New Jersey Chamber of Commerce

A new poll today revealed that New Jerseyans are worse off financially than a year ago and optimism is low. So, what does the legislature do? They make matters worse by voting to raise taxes on the hard working people of the state - people that can barely make ends meet. Even worse, our data shows that paid leave will cost us more in taxes than we are being told.

It is time for the members of the legislature to realize the seriousness of our fiscal crisis by focusing on creating policies that will encourage economic growth. Raising taxes during a recession is the worst thing that could happen, but it has happened.

The Governor has stated time and time again that the main goal of his Administration is to grow jobs and the economy. Hopefully, he will keep this in mind and decide to veto the bill. That way, people will have more money in their pockets to purchase groceries, gas and other necessities.

There is definitely a major disconnect between our leaders in Trenton and the people who pay taxes and employ residents. Legislators and the Governor seem to think our residents and employers have deep pockets and unlimited resources to fund their bloated bureaucracy, when that is far from the case. This madness has to end.


March 13, 2008 - Following Passage of Paid Leave in the State Assembly

Jim Leonard, Senior Vice President, Government Relations, New Jersey Chamber of Commerce

By passing paid leave, the members of the Assembly – as well as the Senate – believe this will make New Jersey standout to the rest of the nation. They are correct but for the wrong reasons. Those looking for a place to invest dollars will now take particular note that New Jersey is not a state conducive to operating a business and they will look elsewhere. This is what happens when you place a mandate on employers that does not exist in 48 other states – a state which already has the dubious distinction as being a high cost place for doing business.

Although he has said he supports paid leave, we now hope that the Governor will reconsider and veto this onerous bill. It sends a horrible message to those here and those around the nation that New Jersey would pass a new mandate during these uncertain economic times.

"Instead, New Jersey leaders should be doing everything humanly possible to stimulate economic growth and remove obstacles that will in any way hamper investment activity and frustrate already stressed employers. The timing on this could not be any worse – not that any time would be good.


March 3, 2008 - Following Passage of Paid Leave in the State Senate

Jim Leonard, Senior Vice President, Government Relations, New Jersey Chamber of Commerce

The passage of paid leave in the Senate demonstrates that although there is much rhetoric about growing the state's economy, the reality is that it is anti-business as usual in Trenton," said Jim Leonard, senior vice president with the New Jersey Chamber of Commerce. "We are about to place a mandate on our struggling employers that does not exist in 48 other states. This is not a welcoming message to companies looking to expand here or explore New Jersey as a place of investment.

"With all the studies out there listing New Jersey as not a competitive place to do business, I would hope that our leaders would eventually get the message that they have to do everything possible to reverse these trends. Passing paid leave in the Senate does nothing to improve our standings.

"This paid leave program will also cost $7.5 million to administer at a time when the Governor is trying to cut government employees and programs. It makes no sense for so many reasons to be implementing paid leave during these uncertain economic times.

December 11, 2007

Jim Leonard, Senior Vice President, Government Relations, New Jersey Chamber of Commerce

Besides changing the corporate business tax structure, over the past 10 years there has not been more of a lightning rod issue for the business community than paid leave.

There has been much talk about economic growth being a top priority in Trenton but passing a mandate such as paid leave does not match the rhetoric. It puts us at a competitive disadvantage because it makes us the third state in the nation to impose such an onerous mandate on companies.

New Jersey will always be a high cost state, which means we have to work harder at attracting quality workers and companies. Imposing paid leave sends the wrong message to those looking to invest in New Jersey – and those already frustrated with the current climate.

There are already federal programs in place that address leave issues and many employers have programs of their own. At a time when the national and state economies are in a precarious state, and our business owners are already stressed, it makes no sense to make New Jersey a paid leave guinea pig for the rest of the nation.

Instead of being a guinea pig for the wrong reasons, let’s be trailblazers for the right reasons. The members of the Administration and the Legislature should instead be focusing all their efforts on creating innovative economic development programs that are the envy of the rest of the nation. Wouldn’t that be something?

Our recent surveys tell us that executives within New Jersey really want the state to succeed. They cite our talented workforce and location in the Northeast as major advantages of being in New Jersey. They are frustrated with the high cost of doing business and government mandates. As the world becomes more global with each passing day, our historic advantages will become less of a factor.

Therefore, our leaders must be innovative and meet the demands of the coming decades. The battle for jobs and companies will become more intense – and the winners will be those that make the right decisions in the economic development arena. The loser states will be those that conducted business as usual, not realizing the possibility that major economic assets could be lost in the long run if bad policy after bad policy – and mandate after mandate – would force many to throw in the towel and go elsewhere.

Is paid leave the straw that broke the camel’s back? Probably not. Will it cause businesses to leave immediately and send thousands fleeing over the bridges into neighboring states? Not likely. But, in an already negative business climate, one where corporate business taxes were raised drastically not too long ago; it is causing many to rethink their commitments to New Jersey.

The Corzine Administration has said they want paid leave passed before the current legislative session ends in January. There are over 30 changes taking place in the legislature next session – and many will be voting for this mandate that will no longer be in office come the New Year. Passing paid leave under these circumstances sends another wrong message; that it is being done under the cover of darkness, in the middle of night, by people that will not be around in a few weeks.

The whole paid leave issue just leaves a bad taste in the entire employer community’s mouth. Hopefully, there will be some last minute right thinking to back away from this mandate. The likelihood in not there. If this is passed, employers will be wondering what comes next. And, whatever that is, it could be the issue that finally pushes many out of the state. Let’s not go there.