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A2187
ASSEMBLY, No. 2187
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 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.