New Jersey enacts wide expansion of job-protected family leave and benefits

On January 18, 2026, Governor Phil Murphy, in one of his final acts as governor, signed into law A3451/S2950, which amends the New Jersey Family Leave Act (NJFLA) to broadly expand employer coverage and employee eligibility. The amendments also convert the receipt of Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits into job-protected leave. The expanded law will go into effect on July 17, 2026. The most significant changes to the NJFLA include:

Broadened employer coverage impacts smaller employers

The NJFLA provides eligible employees up to twelve weeks of unpaid job-protected leave in a twenty-four month period to: (1) care for a family member’s serious health condition; (2) bond with a child within one year of that child’s birth or placement for adoption or foster care; or (3) provide care or treatment for a child during a state of emergency.

Currently, the NJFLA applies to employers with 30 or more employees and provides protected time off to employees who have been employed for at least twelve months and worked at least 1,000 hours in the preceding twelve months.

Under the amendments, the employer-coverage threshold will decrease from thirty to fifteen or more employees. NJFLA coverage will also expand to employees who have worked for at least three months and for at least 250 hours during that period. These changes will significantly impact smaller employers who were previously exempt. These employers must now provide the benefits and protections of the NJFLA and comply with its notice requirements, documentation protocols, anti-retaliation provisions, and reinstatement obligations.

Expanded medical leave job protections

The NJFLA’s amendments also greatly expand job protections for employees taking medical leave and receiving TDI benefits. Currently, the NJFLA, unlike the federal Family and Medical Leave Act (FMLA), does not provide job-protected leave for an employee's own serious medical condition. Under the NJFLA amendments, however, employees receiving TDI benefits for their own medical conditions must be restored to the same job they held prior to taking leave, or to an equivalent position in terms of “seniority, status, employment benefits, pay, and other terms and conditions of employment.” Employees may institute civil actions against employers who do not reinstate them and courts may order the following relief: (1) civil fines of between $1,000 to $2,000 for first violations and no greater than $5,000 for each subsequent violation; (2) injunctions; (3) reinstatement of the employees’ status, full fringe benefits, and seniority rights; (4) compensation for lost wages, benefits, and other remuneration; and (5) payment of reasonable costs and attorneys’ fees.

It is unclear whether employees receiving TDI benefits are entitled to a new, separate right to medical leave. While the amendments do not explicitly grant a new leave entitlement, the new job restoration requirements effectively create one for employees who receive TDI benefits. Accordingly, since employees are entitled to 26 weeks of TDI benefits, they may now be entitled to 26 weeks of job-protected medical leave, far exceeding the twelve weeks offered under the FMLA. Employers should monitor for additional guidance from the New Jersey legislature on this issue.

Employee control over order of TDI and FLI benefits

Employees will now be able to choose the order in which they use available paid leave. They can opt to use their paid sick leave under the New Jersey Earned Sick Leave Law before using their TDI or FLI benefits, or vice versa. However, employees cannot receive more than one type of paid leave benefit at the same time.

Recommendations

New Jersey employers will have approximately six months to revise their employee handbooks and personnel policies to comply with the NJFLA amendments. In particular, employers with between fifteen and twenty-nine employees, who were not previously covered by the NJFLA, will need to be mindful about these sweeping new changes to ensure compliance with the amendments to the NJFLA. Legal counsel will be helpful in providing supervisors with training and updating employers’ policies to ensure that they comply with the NJFLA amendments set to take effect on July 17, 2026.