September 18, 2026
Effective July 17, 2026, the New Jersey Family Leave Act (NJFLA) significantly expanded its coverage to include employers with at least 15 employees. This legislation, P.L.2025, c.279, was signed into law by the immediate past New Jersey Governor Phil Murphy. The changes to the NJFLA also add job protection and reinstatement rights for employees who receive NJ temporary disability insurance (TDI) or NJ family temporary disability leave (FLI) benefits. The changes will continue to affect smaller employers by further reducing the threshold in 2027 (employers with at least 10 employees) and in 2028 (employers with at least 5 employees).
Key Changes and Points to Note:
- Employers must have at least 15 or more employees in the preceding calendar year.
- Employees are eligible if they are employed by a covered employer for at least three months, and have worked at least 250 hours during the immediately preceding 12 months. This means that part-time or seasonal workers and recent hires may now be eligible.
- Employees who are absent from work and take TDI benefits or FLI benefits are entitled to job reinstatement at the end of their leave.
- The new law strengthens existing anti-retaliation provisions.
- The leave is unpaid (as distinguished from benefits).
- Employees cannot use the leave offered under this law for their own serious health conditions.
- While the new law states that it should not be construed as increasing, reducing, or otherwise modifying other employee rights under the NJFLA, the New Jersey Department of Labor may provide more guidance on the scope of the new law in the future.
What Does This Mean for Employees Eligible for NJ Earned Sick Leave and TDI or FLI?
Employees may choose the order that they want to use the wage replacement offered under these benefits. This means that both wage replacement options cannot be accessed at the same time. Additionally, employees utilizing either benefit during their leave have job protection. Upon returning from leave, the employer must reinstate the employee to the position held by the employee when the leave commenced or an equivalent position, as if the leave had not occurred. Furthermore, the employee retains all rights they had before the leave, such as seniority, as if the employee had not taken the leave. Employers will face penalties if they do not comply with the law.
What Should Employers Do Now?
- Train staff that are responsible for handling leave requests to ensure tracking does not adversely affect an employee’s eligibility.
- Update any documentation referring to current leave policies that may be impacted.
If You Have Questions:
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