LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 3505
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: SEPTEMBER 27, 2024
SUMMARY
Synopsis: Concerns bereavement leave for death of child, miscarriage, stillbirth,
and certain other circumstances.
Type of Impact: Increase in annual State expenditures and revenue.
Agencies Affected: Department of Labor and Workforce Development.
Office of Legislative Services Estimate
Annual Fiscal Impact
State Expenditure Increase Indeterminate
State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill will result in an indeterminate
increase in annual State expenditures by permitting individuals to newly qualify for family
temporary disability leave benefits due to certain events. While the OLS is able to estimate
the possible costs associated with certain provisions of the bill, it is unable to estimate how the
Family Leave Insurance program will be affected in the aggregate by the proposed eligibility
changes to determine the annual State expenditure increase.
 The Family Leave Insurance program is funded entirely through an assessment on workers’
wages, the rate of which is set by the Department of Labor and Workforce Development
annually to cover anticipated program expenditures and a reserve requirement. By
broadening the scope of who can qualify for benefits under the program, the bill will lead
to an indeterminate increase in annual State revenues from higher assessed rates on
workers’ wages, all else being equal.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill expands the circumstances under which an employee may take family leave granted
by the New Jersey Family Leave Act. It allows an employee to take family temporary disability
leave benefits granted by the Temporary Disability Benefits Law to bereave the loss of a child due
to the death of the child, or miscarriage, stillbirth, or termination of a pregnancy for medical
reasons, if the individual, or the spouse, domestic partner, or civil union partner of the individual,
is a biological parent of the child or is a parent of the child pursuant to a valid gestational carrier
agreement. The bill also allows an employee to take family temporary disability leave benefits to
bereave an unsuccessful adoption that had been pending and planned by the employee or to bereave
an unsuccessful fertility treatment, including, but not limited to, intrauterine insemination and
assisted reproductive technology.
The bill limits leave and benefits for bereavement as follows:
(1) For bereavement related to a circumstance for which the employee would not otherwise be
eligible for any other kind of disability and family leave and benefits, the employee may take leave
and benefits, depending on the circumstances, for not more than 21 days immediately following
the date of the event which is the reason for the bereavement.
(2) For bereavement related to a circumstance for which the employee would be otherwise
eligible for leave and benefits, depending on the circumstances, the employee may take leave and
benefits for not more than seven days immediately following the date of the event that is the reason
for the bereavement.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result in an indeterminate increase in annual State
expenditures by permitting individuals to newly qualify for family temporary disability leave
benefits due to certain events. While the OLS is able to estimate the possible costs associated with
certain provisions of the bill, it is unable to estimate how the Family Leave Insurance program will
be affected in the aggregate by the proposed eligibility changes to determine the annual State
expenditure increase. For example, the Department of Labor and Workforce Development’s
combined annual activity reports for the Family Leave Insurance and Temporary Disability
Insurance programs show that between 2018 and 2022 there were on average 145 claims annually
under the Family Leave Insurance program for bonding with an adopted child. The National
Council for Adoption reports that the unsuccessful adoption rate is approximately 20 percent.
Based on this, it can be estimated that about 40 unsuccessful adoptions occur each year in New
Jersey. If two individuals affected by the unsuccessful adoption each claimed the weekly
maximum benefit for 2024 of $1,055 for the maximum of 21 days, State expenditures would
increase by about $253,000. The OLS, however, cannot reliably estimate the frequency of the
other events covered by the bill to evaluate their collective impact on annual State expenditures.
Moreover, some individuals that would otherwise be eligible for benefits under this bill may be
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entitled to other employer-provided disability and family leave benefits. This would reduce the
need for the benefits provided under this bill and lessen the State’s associated costs.
The Family Leave Insurance program is funded entirely through an assessment on workers’
wages, the rate of which is set by the Department of Labor and Workforce Development annually
to cover anticipated program expenditures and a reserve requirement. By broadening the scope of
who can qualify for benefits under the program, the bill will also lead to an indeterminate increase
in annual State revenues from higher assessed rates on workers’ wages, all else being equal.
Section: Commerce, Labor and Industry
Analyst: John Gaudioso
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 34:11B-3, 34:11B-4, 43:21-27