On Jan. 17, 2026, then-Gov. Phil Murphy enacted Assembly Bill A-3451/S-2950, which amends the New Jersey Family Leave Act (NJFLA), expanding its coverage to impact a greater number of employers and employees. The amendments also expand employee job protection rights.
This GT Alert summarizes the NJFLA as it stands today, details the key changes under the 2026 amendments, and offers considerations that may help employers prepare for the new requirements, which take effect on July 17, 2026.
Current State of the Law
The NJFLA entitles eligible employees to up to 12 weeks of unpaid, job-protected leave in a 24-month period to:
- Bond with a child after birth, adoption, or foster care placement;
- Care for a family member with a serious health condition; or
- Respond to certain public health emergencies affecting a child or family member.
Currently, the NJFLA applies to employers with 30 or more employees nationwide. To qualify, employees must have worked for a covered employer for at least 12 months and have performed at least 1,000 hours of service in the prior year. The law requires that, upon return from leave, employers reinstate the employee to the same — or an equivalent — position. The NJFLA also prohibits employers from retaliating against employees for exercising their leave rights.
Key Changes Starting July 17, 2026
The amendments to the NJFLA, which take effect in July, introduce significant changes, including:
- Expanded Employer Coverage
- The threshold for employer coverage drops from 30 to 15 employees, regardless of location.
- The coverage threshold will further decrease to 10 employees as of July 17, 2027, and to five employees as of July 17, 2028.
- Lowered Employee Eligibility Thresholds
- Employees will qualify for NJFLA leave after three months of employment (down from 12 months).
- The hours-of-service requirement will decrease to 250 hours during the preceding 12 months (down from 1,000 hours).
- Expanded Job Protection
- Employers must reinstate employees who use Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) to their previous positions or to equivalent positions with comparable pay, benefits, and seniority.
- Employee Choice in Use of Leave Benefits
- Employees eligible for paid sick leave, TDI, or FLI can choose the order in which to apply these benefits but may not use more than one type of paid leave simultaneously.
What's Staying the Same?
- The NJFLA continues to provide up to 12 weeks of job-protected leave in a 24-month period.
- Employees may still take leave only for covered, family-related reasons, not for the employee's own health condition.
- Employers must continue to provide notice of rights and maintain appropriate records.
How Might Employers Prepare?
With the effective date quickly approaching, New Jersey employers, particularly those with 15 or more employees, but fewer than 30 employees, who have therefore not been previously covered, may wish to:
- Review and Update Employee Handbooks and Policies: Review policies to align them with the new eligibility and coverage thresholds, and clearly outline leave rights, benefits coordination, and anti-retaliation measures.
- Revise Compliance Procedures: Update eligibility tracking, leave request forms, and approval workflows to align with the new three-month/250-hour criteria.
- Train HR and Managers: Educate managers and those responsible for administering leave on the updated requirements, including reinstatement obligations and anti-retaliation provisions.
- Post Required Notices: Display the updated NJFLA poster from the pision on Civil Rights when available.
- Coordinate Leave Benefits: Adjust policies to allow for employee choice in the sequencing of paid sick time, TDI, and FLI, and instate procedures to confirm that an employee uses only one type of paid leave at a time.
Bottom Line
The 2026 amendments expand employer coverage and employee eligibility under the NJFLA leave, as well as job restoration rights for employees who avail themselves of temporary disability insurance benefits or family leave insurance benefits. Employers, including newly covered small businesses, should consider updating HR practices, training staff, and revising policies before July 17, 2026, in an effort to comply with the amendments. Future changes may affect even smaller employers in 2027 and 2028.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
