On December 22, 2025, the New Jersey State Senate passed a pivotal bill that could drastically reshape employee leave rights and employer obligations in the state. It is essential for employers to start assessing the potential impact of this legislation, which now moves to the Assembly for review before it is presented to the governor for final signature.
Currently, New Jersey’s Family Leave Act (“NJFLA”) provides employees working at companies with 30 or more employees up to 12 weeks of leave to bond with a new child, care for a sick family member, or for other qualifying reasons, with guaranteed job reinstatement after the leave. To qualify, employees must have worked for their employer for at least 12 months and must have worked a minimum of 1,000 hours in the previous year.
The proposed bill, however, significantly eases these requirements. If passed, employees would only need to have worked for their employer for 6 months and have logged 500 hours in the past year to qualify for leave and job protection. Furthermore, the bill reduces the threshold for employers, meaning businesses with as few as 15 employees (down from the current 30) would be subject to these provisions. Since employees of public entities are already eligible for NJFLA leave regardless of the size of their employer, the only change affecting public entities would be the shortened eligibility period, six months of employment and 500 hours worked in the past year.
It is important to note that the bill does not alter the fact that employees who take NJFLA leave are eligible to receive up to 85% of their average weekly wages, subject to the maximum weekly benefit cap, while on leave through the New Jersey Family Leave Insurance (“NJ-FLI”) program.
For businesses, this legislation represents a major shift. With fewer eligibility requirements, a wider range of employees would be able to take leave with guarantees of job protection. This could result in increased administrative responsibilities for employers, who would need to ensure compliance with these new provisions.
While a limited number of states already provide job protection for employees outside the scope of the Federal Family and Medical Leave Act (FMLA), New Jersey’s approach would position it as a leader in this area. As the bill edges closer to final approval, it is essential for businesses to start preparing for its potential passage and assess how these changes may impact their policies.
