New Jersey employers should begin preparing now for significant changes to the New Jersey Family Leave Act (NJFLA), as well as amendments affecting Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits. Signed into law by Governor Phil Murphy as Assembly Bill 3451 (A3451) shortly before leaving office, the amendments take effect on July 17, 2026 and represent one of the most substantial expansions of family leave rights in the state’s history.
The changes will extend coverage to many smaller employers, dramatically reduce employee eligibility requirements, and potentially expand job restoration protections for employees receiving state-paid leave benefits. State officials estimate that approximately 400,000 additional New Jersey workers may gain access to job-protected leave as a result of the legislation.
Expanded Employer Coverage
Perhaps the most significant change is the expansion of employer coverage under the NJFLA. Currently, the law applies only to employers with 30 or more employees worldwide. Beginning July 17, 2026, that threshold will be reduced to 15 employees, bringing many small businesses within the scope of the law for the first time.
As under current law, employee headcount is determined based on the employer’s worldwide workforce rather than only employees working in New Jersey. Consequently, employers headquartered outside New Jersey that maintain even a small presence in the state may become subject to the NJFLA if they meet the 15-employee threshold.
Employers newly covered by the NJFLA will need to establish comprehensive leave administration processes, including employee notices, leave request procedures, documentation requirements, anti-retaliation protections, and reinstatement obligations.
Reduced Employee Eligibility Requirements
The amendments also substantially lower the eligibility requirements employees must satisfy before qualifying for NJFLA leave.
Under current law, employees must:
- Have been employed for at least 12 months; and
- Have worked at least 1,000 hours during the preceding 12-month period.
Effective July 17, 2026, employees will become eligible after:
- Just three months of employment; and
- Only 250 hours worked during the preceding 12 months.
These revised standards significantly expand eligibility for newer hires, seasonal employees, and part-time workers who previously did not qualify for protected leave. Employers should anticipate increased utilization of NJFLA leave and ensure that leave-tracking systems, HRIS platforms, and payroll processes are updated to accurately reflect the new eligibility thresholds.
What Remains Unchanged
While coverage and eligibility are expanding, several core features of the NJFLA remain the same.
Eligible employees will continue to be entitled to up to 12 weeks of unpaid, job-protected leave during a 24-month period for qualifying family-related reasons, including:
- Bonding with a newborn, adopted child, or foster child;
- Caring for a family member or equivalent of a family member with a serious health condition; and
- Certain public health emergency-related situations involving a family member or child.
Importantly, the NJFLA still does not provide leave for an employee’s own serious health condition, distinguishing it from the federal Family and Medical Leave Act (FMLA).
TDI and FLI Amendments Create Questions Regarding Job Protection
The legislation also amends New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) statutes, which provide partial wage replacement benefits to eligible employees during qualifying leaves.
Historically, eligibility for TDI or FLI benefits has been separate from entitlement to job-protected leave. Employees could qualify for wage replacement benefits without necessarily qualifying for NJFLA leave or other job protection.
The amendments add language requiring employers to restore employees receiving TDI or FLI benefits to the same position or an equivalent position with equivalent seniority, status, pay, benefits, and other terms and conditions of employment upon their return from leave. The law further provides that employees must be treated as though they had not taken leave for purposes of layoffs, recalls, and similar employment actions.
However, the legislation simultaneously states that these provisions should not be construed as increasing, reducing, or otherwise modifying any rights already provided under the NJFLA. This has created uncertainty regarding whether the amendments effectively establish job-protected leave for certain employees receiving TDI or FLI benefits who would not otherwise qualify for NJFLA leave. Employers should closely monitor future regulatory guidance and court interpretations addressing this issue.
The amendments also create potential enforcement exposure by allowing employees to pursue civil remedies for alleged violations of the reinstatement provisions, including reinstatement, lost wages and benefits, attorney’s fees, injunctive relief, and civil penalties.
Employee Choice Regarding Leave Benefits
Another notable change concerns the interaction between New Jersey Earned Sick Leave and TDI or FLI benefits.
Beginning July 17, 2026, employees who are eligible for both earned sick leave and TDI or FLI benefits may choose which benefit to use first and may determine the sequence in which available benefits are utilized. However, employees may not receive earned sick leave and TDI or FLI benefits simultaneously. As a result, employees may not “top off” state benefits with earned sick leave to receive full wages during the same period.
Action Items for Employers
With the effective date approaching, employers should begin preparing now by:
- Determining whether they will become newly covered under the 15-employee threshold;
- Reviewing and updating employee handbooks, leave policies, and forms;
- Revising leave administration procedures and eligibility tracking systems;
- Updating HRIS and payroll systems to account for the new eligibility standards;
- Training HR personnel, supervisors, and managers on the expanded protections and anti-retaliation requirements;
- Reviewing staffing and operational contingency plans to address increased leave utilization; and
- Monitoring guidance from New Jersey agencies regarding implementation of the new law.
Bottom Line
The 2026 amendments to the NJFLA represent a significant expansion of family leave rights in New Jersey. By lowering employer coverage thresholds, dramatically reducing employee eligibility requirements, and potentially extending job restoration rights to recipients of TDI and FLI benefits, the legislation will impact employers across a wide range of industries. Organizations that begin preparing now will be best positioned to ensure compliance, minimize operational disruption, and reduce legal risk when the amendments take effect on July 17, 2026.
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.
Do You Have a Partner for Your Most Critical Decisions?
MEA Membership provides you with a direct line to true compliance expertise. Our members enjoy the peace of mind that comes from a 24/7 hotline that’s available to help them navigate challenges and maintain the highest standards of workplace integrity. You can tap into thousands of hours of collective legal experience the moment you need it, positively impacting your organization and your people by reducing the risk of costly lawsuits and maintaining regulatory compliance.
