Recent amendments to the New Jersey Temporary Disability Benefits Law and the New Jersey Family Leave Act (NJFLA), coupled with newly issued guidance from the New Jersey Department of Labor and Workforce Development (NJDOL), are providing broadened job-protection for New Jersey employees, effective July 17, 2026.
In June of this year, MEA issued an alert regarding the expansion of NJFLA protections. At the time, there was some question on how the expansion would affect employee job protections. Now, the NJDOL has confirmed that employees who receive Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits are entitled to job protection based solely on their receipt of those benefits, even if their leave is not otherwise protected by the NJFLA or the federal Family and Medical Leave Act (FMLA).
TDI and FLI Benefits Now Carry Independent Job Protection
Historically, New Jersey’s TDI and FLI programs provided employees with partial wage replacement, but they did not independently guarantee job restoration. The NJDOL now has clarified that, under the 2026 amendments, employees who receive TDI or FLI benefits must be reinstated at the conclusion of their leave to the same position or an equivalent position with equivalent pay, benefits, seniority, and other terms and conditions of employment.
Unlike the NJFLA and FMLA, these reinstatement rights do not depend on employer size, employee tenure, or hours worked. Instead, eligibility is based solely on whether the employee qualifies for TDI or FLI benefits, which is determined by recent earnings. Currently, employees generally qualify for TDI or FLI benefits if they worked at least 20 weeks earning the required weekly minimum or earned the required annual minimum during the applicable base year. As a result, some employees may qualify for job-protected leave very early in their employment.
The NJDOL guidance further instructs employers to presume an employee is eligible for job protection while a TDI or FLI claim is pending unless and until benefits are denied. The NJDOL also has stated that these protections apply to employees whose leave began before July 17, 2026, provided they are receiving TDI or FLI benefits after the law’s effective date.
What Employers Should Do Now
These changes affect employers of every size and will be particularly impactful for small and midsized businesses that may have limited staffing flexibility. Employers should:
- Review and update applicable policies.
- Revise leave administration procedures to account for TDI and FLI reinstatement rights.
- Train Human Resources professionals and supervisors on the expanded protections.
- Coordinate TDI, FLI, NJFLA, and FMLA administration to ensure leave is tracked properly.
- Avoid making employment decisions while a TDI or FLI claim is pending, as the NJDOL expects employers to presume eligibility until a benefits determination is made.
Employers should consult with experienced human resources professionals and/or labor and employment counsel with any questions regarding these new employment laws and any required changes to employer policies and practices. For all MEA members, the Hotline is available to provide this assistance. For MEA Essential and Premier members, a Member Legal Services attorney is available for additional consultation.
*This Alert is provided for general informational purposes only and does not constitute legal advice.
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