New Jersey Expands Family Leave Protections

New Jersey has passed a major expansion of the New Jersey Family Leave Act (NJFLA) that will take effect July 17, 2026. The law significantly increases who is covered, who qualifies, and how long leave may be protected.

Governor Murphy signed legislation expanding the New Jersey Family Leave Act that changed the landscape for employers across the state. Beginning around July 17, 2026, many businesses that never had to think about NJFLA before will now be covered, and employees will be eligible for job-protected leave much sooner than in the past.

Under the new law, the threshold for coverage drops from 30 employees to just 15. That means even small businesses — including out-of-state employers with a single remote employee in New Jersey — may now be required to provide NJFLA leave. At the same time, employee eligibility has been significantly expanded. Instead of waiting a year and logging 1,000 hours, employees may qualify after only three months of employment and 250 hours worked.

Perhaps the most consequential change for employers is how paid leave benefits now intersect with job protection. Historically, New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provided wage replacement but did not guarantee an employee’s job. Under the new law, employees who receive TDI or FLI benefits may now be entitled to return to the same or an equivalent position. In practice, this could turn what was once paid time off without job protection into extended, legally protected leave.

The result is a potential shift in how long employees may be away from work. Between TDI and FLI, employees could be out for many months while still retaining job-restoration rights — far longer than employers are accustomed to managing under traditional family and medical leave laws. For leadership teams, this raises real questions about coverage, workload redistribution, overtime costs, and business continuity, especially in smaller organizations.

The takeaway for employers is simple but important: this is not a technical update that can be ignored. Policies, handbooks, and leave administration practices will need to be reviewed and updated, and leadership should begin planning now for longer, protected employee absences. With the effective date approaching in mid-2026, early preparation will be key to staying compliant while keeping operations running smoothly.