Bill Text: NJ A1995 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes 10 year Menstrual Leave and Remote Work Pilot Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Labor Committee [A1995 Detail]
Download: New_Jersey-2024-A1995-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
Establishes 10 year Menstrual Leave and Remote Work Pilot Program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act creating the Menstrual Leave and Remote Work Pilot Program and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is established in the Department of Labor and Workforce Development a 10 year Menstrual Leave and Remote Work Pilot Program. The purpose of this program is to provide medically necessary leave and remote work options to employees suffering from menstrual disorders, which can be severe, debilitating, and embarrassing. To be eligible for the program, an employee shall be required to obtain documentation from the employee's treating physician that the employee suffers from a qualifying menstrual disorder and requires an accommodation of leave or a remote work option, as appropriate.
b. The program is divided into the following two components:
(1) A medical leave program into which an employer may voluntarily enroll to provide up to two full working days per month of fully paid medical leave, in addition to any other leave required by law, to employees suffering from qualifying menstrual disorders, including, but not limited to:
(a) Uterine fibroids;
(b) Endometriosis;
(c) Polycystic ovary syndrome; and
(d) Adenomyosis; and
(2) A remote work program into which an employer may voluntarily enroll to provide up to two full days per month that an employee may work remotely to accommodate symptoms arising from qualifying menstrual disorders, including, but not limited to:
(a) Uterine fibroids;
(b) Endometriosis;
(c) Polycystic ovary syndrome;
(d) Adenomyosis;
(e) Premenstrual syndrome;
(f) Premenstrual dysphoric disorder;
(g) Dysmenorrhea; and
(h) Menorrhagia.
c. An employer providing
fully paid medical leave in accordance to paragraph (1) of subsection b. of
this section shall be eligible for a tax credit pursuant to sections 2 through
of 5 of
P.L. , c. (C. ) (pending before the Legislature as this bill)
equal to the amount of wages paid to each employee for this medical leave, up
to two days per month.
d. An employer providing a
remote work option in accordance with paragraph (2) of subsection b. of this
section shall be eligible for a tax credit pursuant to sections 6 through of 9
of P.L. ,
c. (C. ) (pending before
the Legislature as this bill) equal to 25 percent of the wages paid to each
employee for the time the employee spends working remotely, up to two days per
month.
e. During the pendency of the pilot program, an employer participating in the program, whether for leave or remote work, or both, shall be subject to the employee protections in section 4 of P.L.2018, c.10 (C.34:11D-4). Any personnel action or discrimination taken by an employer against an employee for using or requesting medical leave in accordance with paragraph (1) of subsection b. of this section or working or requesting to work remotely in accordance with paragraph (2) of subsection b. of this section shall constitute a violation of P.L.2018, c.10 (C.34:11D-1 et seq.), and shall be regarded as a failure to meet the wage payment requirements of the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.), or other violation of that act, as the case may be, and remedies, penalties, and other measures provided by that act, R.S.34:11-58, and section 10 of P.L.1999, c.90 (C.2C:40A-2) for failure to pay wages or other violations of that act shall be applicable, including, but not limited to, penalties provided pursuant to sections 23 and 25 of that act (C.34:11-56a22 and 34:11-56a24), and civil actions by employees pursuant to section 26 of that act (C.34:11-56a25), except that an award to an employee in a civil act shall include, in addition to the amount provided pursuant to section 26 of that act (C.34:11-56a25), any actual damages suffered by the employee as the result of the violation plus an equal amount of liquidated damages.
f. The Commissioner of Labor and Workforce Development shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act.
2. a. There is established in the Department of Labor and Workforce Development a program, administered by the commissioner, to provide tax credits to employers that provide fully paid medical leave for up to two full working days per month, in addition to the earned sick leave that is required to be paid pursuant to P.L.2018, c10 (C.34:11D-1 et seq.), to employees suffering from menstrual disorders in accordance with paragraph (1) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The purpose of the program is to provide tax credits to these employers to offset the cost to the employer of wages paid to employees using the time provided by the employer.
b. An employer subject to the provisions of paragraph (1) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) may apply to the commissioner for an award of tax credits under this section. A tax credit allowed pursuant to this section shall be in the amount provided in subsections c. and d. of this section against the corporation business tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) or the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., whichever of the two taxes is applicable to the employer.
c. The final amount of the tax credit provided to an employer for paying fully paid medical leave to employees during a tax year shall be the amount that the employer actually paid for each employee for fully paid medical leave pursuant to paragraph (1) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. An employer may qualify for a tax credit pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) in a taxable year or privilege period beginning on or after January 1, 2023.
e. The combined value of all tax credits approved annually by the commissioner pursuant to this section shall not exceed $10,000,000 in a calendar year. The commissioner shall annually review and report to the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1) on the sufficiency of the tax credit cap authorized pursuant to this subsection and any recommendations with respect thereto to the Legislature.
f. As used in sections 2 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Commissioner" means the Commissioner of Labor and Workforce Development.
"Employer" means any nongovernmental business entity including, but not limited to, a nonprofit organization, a corporation, S corporation, limited liability company, partnership, limited partnership, and sole proprietorship, and shall include all entities related by common ownership or control.
"Tax year" means the calendar year or fiscal year in which a taxpayer's gross income tax or corporation business tax liability is due and payable.
3. a. Notwithstanding any
provision of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the commissioner, in consultation with
the State Treasurer, may adopt, upon filing with the Office of Administrative
Law, such regulations that the commissioner deems necessary to implement the
provisions of sections 2 through 5 of P.L. ,
c. (C. ) (pending before the Legislature as this bill), which
regulations shall be effective for a period not to exceed 180 days from the
date of the filing. The commissioner shall thereafter amend, adopt, or readopt
the regulations in accordance with the requirements of P.L.1968, c.410
(C.52:14B-1 et seq.). The regulations adopted by the commissioner shall include
the following:
(1) standards and procedures for determining which employers are eligible of employers for tax credits;
(2) any additions to, or modifications of, wage record-keeping requirements needed to calculate the amounts of tax credits under sections 2 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) a method for employers to submit certificates of credit to the Division of Taxation pursuant to sections 3 and 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Beginning the year next following the year in which P.L. , c. (C. ) (pending before the Legislature as this bill) takes effect and every year thereafter, the commissioner shall prepare a report concerning the award of tax credits under sections 2 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), and submit the report to the Governor, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. Each biennial report required under this subsection shall include the names and locations of, and the amount of tax credits allowed to, each employer allowed a tax credit under sections 2 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. a. The Director of the
Division of Taxation in the Department of the Treasury shall allow an employer
a credit against the corporation business tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5) in the amount certified by the Commissioner of
Labor and Workforce Development as the taxpayer's tax credit amount pursuant to
section 2 of P.L. ,
c. (C. ) (pending before the Legislature as this bill). To claim the
tax credit amount for a privilege period, the taxpayer shall submit to the
director the certificate of credit issued for that privilege period by the
commissioner pursuant to section 2 of
P.L. , c. (C. ) (pending before the Legislature as this bill).
b. An employer shall apply
the credit awarded against the employer's liability under section 5 of
P.L.1945, c.162
(C.54:10A-5) for the privilege period during which the director allows the
employer a tax credit pursuant to this section. An employer shall not carry
forward an unused credit.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
5. a. The Director of the Division of Taxation in the Department of the Treasury shall allow an employer a credit against the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. in the amount certified by the Commissioner of Labor and Workforce Development as the taxpayer's tax credit amount pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). To claim the tax credit amount for a taxable year, the taxpayer shall submit to the director the certificate of credit issued for that taxable year by the commissioner pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. An employer shall apply the credit awarded against the employer's liability under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for the taxable year during which the director allows the employer a tax credit pursuant to this section. An employer shall not carry forward an unused credit.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero. No tax credit shall be allowed pursuant to this section for any wages and payroll taxes included in the calculation of any other tax credit granted pursuant to a claim made on a tax return filed with the director for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
d. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
A taxpayer that is a New Jersey S corporation shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a pro-rata share of S corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro-rata share of S corporation income of the New Jersey S corporation for its privilege period ending within or with the taxpayer's taxable year.
6. a. There is established in the Department of Labor and Workforce Development a program, administered by the commissioner, to provide tax credits to employers that provide remote work options for up to two full working days per month, to employees suffering from menstrual disorders in accordance with paragraph (2) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The purpose of the program is to provide tax credits to these employers to offset the cost to the employer of wages paid to employees using the time provided by the employer.
b. An employer subject to the provisions of paragraph (2) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) may apply to the commissioner for an award of tax credits under this section. A tax credit allowed pursuant to this section shall be in the amount provided in subsections c. and d. of this section against the corporation business tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) or the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., whichever of the two taxes is applicable to the employer.
c. The final amount of the tax credit provided to an employer for paying full wages for remote work to employees during a tax year shall be 25 percent of the amount that the employer actually paid for each employee work remotely pursuant to paragraph (2) of subsection b. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. An employer may qualify for a tax credit pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) in a taxable year or privilege period beginning on or after January 1, 2023.
e. The combined value of all tax credits approved annually by the commissioner pursuant to this section shall not exceed $5,000,000 in a calendar year. The commissioner shall annually review and report to the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1) on the sufficiency of the tax credit cap authorized pursuant to this subsection and any recommendations with respect thereto to the Legislature.
f. As used in sections 6 through 9 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Commissioner" means the Commissioner of Labor and Workforce Development.
"Employer" means any nongovernmental business entity including, but not limited to, a nonprofit organization, a corporation, S corporation, limited liability company, partnership, limited partnership, and sole proprietorship, and shall include all entities related by common ownership or control.
"Tax year" means the
calendar year or fiscal year in which a taxpayer's gross income tax or
corporation business tax liability is due and payable.
7. a. Notwithstanding any
provision of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the commissioner, in consultation with
the State Treasurer, may adopt, upon filing with the Office of Administrative
Law, such regulations that the commissioner deems necessary to implement the
provisions of sections 6 through 9 of P.L. ,
c. (C. ) (pending before the Legislature as this bill), which
regulations shall be effective for a period not to exceed 180 days from the
date of the filing. The commissioner shall thereafter amend, adopt, or readopt
the regulations in accordance with the requirements of P.L.1968, c.410
(C.52:14B-1 et seq.). The regulations adopted by the commissioner shall include
the following:
(1) standards and procedures for determining which employers are eligible of employers for tax credits;
(2) any additions to, or modifications of, wage record-keeping requirements needed to calculate the amounts of tax credits under sections 6 through 9 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) a method for employers to
submit certificates of credit to the Division of Taxation pursuant to sections
8 and 9 of P.L. ,
c. (C. ) (pending
before the Legislature as this bill).
b. Beginning the year next
following the year in which
P.L. , c. (C. ) (pending before the Legislature as this bill)
takes effect and every year thereafter, the commissioner shall prepare a report
concerning the award of tax credits under sections 6 through 9
of P.L. , c. (C. )
(pending before the Legislature as this bill), and submit the report to the
Governor, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the
Legislature. Each biennial report required under this subsection shall include
the names and locations of, and the amount of tax credits allowed to, each employer
allowed a tax credit under sections 6 through 9 of P.L. , c.
(C. ) (pending before
the Legislature as this bill).
8. a. The Director of the
Division of Taxation in the Department of the Treasury shall allow an employer
a credit against the corporation business tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5) in the amount certified by the Commissioner of
Labor and Workforce Development as the taxpayer's tax credit amount pursuant to
section 6 of P.L. ,
c. (C. ) (pending before the Legislature as this bill). To claim the
tax credit amount for a privilege period, the taxpayer shall submit to the
director the certificate of credit issued for that privilege period by the
commissioner pursuant to section 6 of
P.L. , c. (C. ) (pending before the Legislature as this bill).
b. An employer shall apply
the credit awarded against the employer's liability under section 5 of
P.L.1945, c.162
(C.54:10A-5) for the privilege period during which the director allows the
employer a tax credit pursuant to this section. An employer shall not carry
forward an unused credit.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
9. a. The Director of the Division of Taxation in the Department of the Treasury shall allow an employer a credit against the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. in the amount certified by the Commissioner of Labor and Workforce Development as the taxpayer's tax credit amount pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill). To claim the tax credit amount for a taxable year, the taxpayer shall submit to the director the certificate of credit issued for that taxable year by the commissioner pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. An employer shall apply the credit awarded against the employer's liability under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for the taxable year during which the director allows the employer a tax credit pursuant to this section. An employer shall not carry forward an unused credit.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero. No tax credit shall be allowed pursuant to this section for any wages and payroll taxes included in the calculation of any other tax credit granted pursuant to a claim made on a tax return filed with the director for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
d. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
A taxpayer that is a New Jersey S corporation shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a pro-rata share of S corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro-rata share of S corporation income of the New Jersey S corporation for its privilege period ending within or with the taxpayer's taxable year.
10. This act shall take effect immediately and shall expire on January 1, 2033.
STATEMENT
This bill establishes a 10 year Menstrual Leave and Remote Work Pilot Program. The purpose of this program is to provide medically necessary leave and remote work options to employees suffering from menstrual disorders, which can be severe, debilitating, and embarrassing. To be eligible for the program, an employee is required to obtain documentation from the employee's treating physician that the employee suffers from a qualifying menstrual disorder and requires an accommodation of leave or a remote work option, as appropriate.
The pilot program is divided into the following two components:
(1) a medical leave program into which an employer may voluntarily enroll to provide up to two full working days per month of fully paid medical leave, in addition to any other leave required by law, to employees suffering from qualifying menstrual disorders, including, but not limited to:
(a) Uterine fibroids;
(b) Endometriosis;
(c) Polycystic ovary syndrome; and
(d) Adenomyosis; and
(2) a remote work program into which an employer may voluntarily enroll to provide up to two full days per month that an employee may work remotely to accommodate symptoms arising from qualifying menstrual disorders, including, but not limited to:
(a) Uterine fibroids;
(b) Endometriosis;
(c) Polycystic ovary syndrome;
(d) Adenomyosis;
(e) Premenstrual syndrome;
(f) Premenstrual dysphoric disorder;
(g) Dysmenorrhea; and
(h) Menorrhagia.
Under each program, a participating employer will be entitled to tax credits for wages paid to employees. For the medical leave program, employers will be entitled to a dollar for dollar tax credit for wages paid to employees in the program up to two full days each month. For the remote work program, employers will be entitled to a tax credit equal to 25 percent of the wages paid to employees in the program up to two full days each month.
Any personnel action or discrimination taken by an employer against an employee for using or requesting medical leave in accordance or working or requesting to work remotely in accordance with this bill, will be regarded as a violation of the earned sick leave law and subject to the penalties in that law.
