init.js

jQuery(function($){
	$('.gform_fields input[type="text"], .gform_fields input[type="email"], .gform_fields input[type="tel"], .gform_fields textarea').fadeLabel();
});

jquery.fadeLabel.js

;(function ( $, window, document, undefined ) {

	"use strict";

	var pluginName = "fadeLabel",
		defaults = {
			label : false,
			abort : false
		};

	// The actual plugin constructor
	function Plugin ( element, options ) {
		this.element = element;
		this.$label = false;
		this.settings = $.extend( {}, defaults, options );
		this._defaults = defaults;
		this._name = pluginName;
		this.init();
	}

	// Avoid Plugin.prototype conflicts
	$.extend(Plugin.prototype, {
		init: function () {
			this.findLabel();

			if( ! this.$label.length ){
				console.log( 'fadeLabel could not find a label.' );
				return;
			}
			if( ! this.$label.text() ){
				console.log( 'fadeLabel found an empty label.' );
				return;
			}

			this.bindEvents();
		},

		findLabel: function () {
			var lbl = this.settings.label,
				$field = $(this.element),
				$label = false;

			// look for the settings label first
			if( lbl ){
				$label = $field.closest( lbl );
				if( ! $label.length )
					$label = $field.prev( lbl );
				if( ! $label.length )
					$label = $field.next( lbl );
			}

			// try to find a label automatically
			if( ! $label.length )
				$label = $field.next('label:first');
			if( ! $label.length )
				$label = $field.siblings('label:first');
			if( ! $label.length )
				$label = $field.parents('label').find('.label:first');
			if( ! $label.length )
				$label = $field.parents('li:first').find('label');
			if( ! $label.length )
				$label = $field.parents('p:first').find('label');
			if( ! $label.length )
				$label = $field.parents('form:first').find('label');

			this.$label = $label;
		},

		bindEvents: function(){
			var $field = $( this.element ),
				$label = $( this.$label );

			// hide the label if the field has a value
			if( $field.val() )
				$label.hide();

			// setup field events
			$field.focus(function(e){
				if( ! $field.val() ){
					$label.fadeTo( 'normal', .2 );
				} else {
					if( $label.css('opacity') > 0 ){
						$label.fadeTo('fast', 0, function(){
							$label.hide();
						});
					}
				}
			}).blur(function(e){
				if( ! $field.val() ){
					$label.fadeTo( 'normal', 1 );
				} else {
					if( $label.css('opacity') > 0 ){
						$label.hide();
					}
				}
			}).keyup(function(e){
				if( $field.val() ){
					if( $label.css('opacity') > 0 ){
						$label.fadeTo( 'fast', 0, function(){
							$label.hide();
						});
					}
				} else {
					$label.fadeTo( 'normal', .2 );
				}
			});
		}
	});

	// A really lightweight plugin wrapper around the constructor,
	// preventing against multiple instantiations
	$.fn[ pluginName ] = function ( options ) {
		return this.each(function() {
			if ( !$.data( this, "plugin_" + pluginName ) ) {
				$.data( this, "plugin_" + pluginName, new Plugin( this, options ) );
			}
		});
	};

})( jQuery, window, document );