As many of you already know, the New Jersey Family Leave Act (“NJFLA”) was significantly expanded through Assembly Bill A3451, signed into law by outgoing Governor Phil Murphy on January 17, 2026, with most of these changes becoming effective very soon on July 17, 2026. These amendments will have a major effect on many workplaces by extending job-protected leave rights to a larger group of additional workers by inter alia lowering employer and employee eligibility thresholds and by similarly vesting employees with greater reinstatement rights after taking certain protected leaves of absence.
Here is a summary of the important changes that have been made to the NJFLA.
Employer Threshold: The coverage threshold for applicability of the law to an employer drops from the current 30 employee requirement to 15 employees (that significantly are to be counted wherever they are, even if outside of the state, provided at least one employee works in New Jersey). This requirement applies to employers with 15 or more employees starting July 17, 2026, with further phase-ins for even smaller employers in 2027 (10 plus employees) and 2028 (5 plus employees).
Employee Eligibility Threshold: Eligibility thresholds are also being reduced for employees. The current 12 months of service requirement and 1,000 hours mandate is being reduced to 3 months of a service threshold and 250 hours worked in the preceding 12-month period. Both this change, and the revision to the Employer coverage threshold, will expand how many employers are covered by the NJFLA and increase the number of employees now eligible to receive NJFLA leave.
Job Protection for TDI/FLI Recipients: Employees receiving Temporary Disability Insurance (“TDI”) or Family Leave Insurance (“FLI”) benefits will be entitled for the very first time to job restoration to their original or an equivalent position. This change is major because it now creates new job protection for those simply collecting paid benefits even if they do not meet standard NJFLA (or even FMLA) eligibility criteria, although there is some ambiguity in the statutory language regarding the scope of this new restoration right.
Leave Sequencing: Eligible employees can now choose the order in which they use New Jersey Earned Sick Leave, TDI, or FLI benefits, though they may not receive multiple paid leave under these laws simultaneously for the same period.
Outside of the foregoing changes, core aspects of the NJFLA remain in effect. The NJFLA continues to provide up to 12 weeks of unpaid, job-protected leave within a 24-month period for qualifying family-related reasons, such as bonding with a new child or caring for a family member with a serious health condition. The NJFLA likewise still does not provide leave for an employee’s own serious health condition (which remains covered under the FMLA and the TDI).
In light of these upcoming changes to the NJFLA, it is wise for employers to update employee handbooks, begin taking steps to be ready to track employee eligibility under these new threshold standards referenced above, and commence training staff on the expanded leave, reinstatement rights, and continuing anti-retaliation obligations that protect persons who exercise rights protected under the NJFLA, TDI and FLI laws. That way, you will be ready to comply with the new changes that are now just a short two months away from becoming effective.
