New Jersey Dramatically Expands Job-Protected Family Leave and Benefits

On July 17, 2026, amendments to the New Jersey Family Leave Act (NJFLA) and the laws administering New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits will take effect, expanding employer and employee coverage under the NJFLA and potentially increasing protections related to paid benefits from the state. On his way out of office, Governor Murphy executed numerous pieces of legislation, including A3451 (the “Act”), which increases the NJFLA’s reach to businesses with fewer employees and decreases the eligibility requirements for individual employees seeking FLI benefits. 

Employer Coverage Under NJFLA Threshold Drops from 30 Employees to 15

In recent years, there have been many amendments to the NJFLA, increasing reasons for use and the right to take intermittent leave, but until now, the general employer coverage thresholds and individual eligibility requirements remained unchanged. Currently, the NJFLA covers employers with 30 or more employees, and provides protected time off to employees who have been employed for at least 12 months and worked at least 1,000 hours in the 12 months preceding leave.

Under the Act, the NJFLA’s employer‑coverage threshold will decrease from 30 employees to 15 employees anywhere, reflecting a substantial change for small employers, which were previously outside the law’s reach.  Such employers will now have to comply with NJFLA, which requires up to 12 weeks of unpaid job‑protected family leave in a 24‑month period for eligible employees. Employers newly covered by the statute must implement comprehensive NJFLA processes for the first time, including notice requirements, documentation protocols, anti‑retaliation protections, and reinstatement obligations before July 17, 2026. 

Employee NJFLA Eligibility Threshold Reduced to Three Months and 250 Hours

The amendments also significantly reduce the requisite length of employment and number of hours worked by an employee to become eligible for NJFLA leave. Instead of the previous 12‑month and 1,000‑hours worked thresholds, employees will be eligible for NJFLA leave upon completing only three months of employment and 250 hours worked for the employer in the preceding 12‑month period. This major shift is expected to increase the number of employees who qualify for protected leave, particularly in industries with part‑time workforces or higher turnover. Employers should anticipate greater utilization of NJFLA leave and must ensure that internal systems reflect these revised eligibility standards.

Amendments Regarding TDI and FLI Benefits

The Act also amends the TDI and FLI laws, which provide partial wage replacement benefits to eligible employees otherwise on leave for qualifying reasons. As clearly stated on the state’s website, eligibility for TDI or FLI benefits is currently completely separate from an employee’s right to protected time off, and receipt of benefits does not guarantee job protection. This comes into play when an employee is eligible for FLI benefits but not NJFLA, due to the lower eligibility requirements for FLI. The Act adds language that covered individuals who receive TDI or FLI benefits “shall” be restored to the same or equivalent position following their leave, but also says: “nothing [herein] shall be construed as increasing, reducing or otherwise modifying any entitlement provided to a worker by the provisions of the ‘Family Leave Act’ [ ] to be restored to employment by the employer after a period of family disability leave,” making it unclear as to whether these amendments do, in fact, actually change anything. These amendments are in the statute governing benefits, and not the NJFLA, so it is unclear to what “leave” it refers.  

The TDI and FLI laws were also amended to provide that eligible employees who have available earned sick leave under New Jersey’s Earned Sick and Safe Leave Law have the option of, but are not required to, use earned sick leave and may select the order in which they use earned sick leave and/or TDI or FLI benefits. Employees are not eligible to receive earned sick leave and/or TDI or FLI benefits at the same time, so earned sick leave may not be used to “top off” benefits received from the state.

Implementation Timeline and Looking Ahead

Because the amendments take effect on July 17, 2026, employers should use the coming months to confirm coverage under the reduced 15‑employee threshold, update handbooks and internal policies, revise HRIS and payroll systems to capture the new eligibility rules and train supervisors and HR personnel on expanded protections. Employers newly covered by the NJFLA will need to build full leave‑administration processes, while those already covered should incorporate the revised eligibility and into existing systems. Once in effect, the Act is expected to increase leave utilization and accelerate the pace at which employees qualify for job‑protected leave, underscoring the importance of preparing now.

Bottom line: with sweeping changes ahead and a July 17 deadline, employers that plan early will be best positioned to manage compliance smoothly and minimize risk.