The Garden State Or Worker’s Paradise? Amendments To New Jersey Family Leave Laws Expand Employee Protections

Amendments to the New Jersey Family Leave Act (NJFLA) and the laws administering New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) took effect on July 17, 2026. Employers should immediately review their policies and procedures to ensure they stay in compliance.

NJFLA Amendments Expand Coverage

Employers subject to the NJFLA must provide eligible employees with up to 12 weeks of unpaid job‑protected family leave in a 24‑month period. Recent amendments expand coverage.

More Employers Covered

First, the amendments reduce the NJFLA’s employer coverage threshold from 30 employees to 15 employees anywhere. This is a significant change for small businesses. Employers with 15 or more employees now must comply with the NJFLA. And, as New Jersey employers should be aware, the NJFLA doesn’t distinguish between full-time or part-time workers.

More Employees Covered

Second, the amendments reduce the length/tenure of employment and number of hours an employee must work to be eligible for NJFLA leave. Instead of the previous thresholds of 12 months and 1,000 hours worked, employees now are eligible for NJFLA leave after completing only three months of employment and 250 hours worked for the employer in the preceding 12‑month period. This obviously increases the number of employees who qualify for protected leave, especially in industries where part-time employees or higher turnover exist.

TDI and FLI Benefits Amendments Sow Confusion

The Legislature also amended New Jersey’s TDI and FLI laws. TDI and FLI provide partial wage-replacement benefits to eligible employees otherwise on leave for qualifying reasons. TDI or FLI benefits are separate from an employee’s right to protected time off, such as under the NJFLA or federal Family and Medical Leave Act (FMLA), and receipt of TDI or FLI benefits didn’t guarantee job protection—until now.

That’s because the recent amendments to the TDI and FLI laws add language that covered individuals who receive TDI or FLI benefits “shall” be restored to the same or equivalent position following their leave. But those laws also say that they shouldn’t be construed as “increasing, reducing or otherwise modifying any entitlement” under the NJFLA “to be restored to employment by the employer after a period of family disability leave[.]” Under this revision, an employee who doesn’t qualify for protected leave under the NJFLA or federal FMLA would still get job-protected leave if she collected TDI or FLI. That would seem to be contrary to those statutes’ prohibition on increasing rights under the NJFLA.

To clear up this confusion, the New Jersey Department of Labor (NJDOL) recently issued guidance for employers: New Jersey employees who receive TDI benefits or FLI benefits are entitled to be reinstated to their jobs when their leave expires. That’s so, even if neither the employee nor the employer falls within the scope of the NJFLA or the FMLA. According to the NJDOL website, there are no minimum employer size requirements or work history/tenure requirements for this protection. Thus, an employee could be eligible for benefits under TDI or FLI, but not NJFLA, so long as that employee meets the earnings requirements for TDI or FLI benefits (work 20 weeks earning at least $310 per week or earn a combined total of $15,500 in the base year). And that employee would be entitled to mandatory reinstatement.

The TDI and FLI laws were also amended to provide that eligible employees who have available earned sick leave under New Jersey’s Earned Sick and Safe Leave Law have the option, but are not required, to use earned sick leave in addition to utilizing TDI/FLI benefits. If they do, they can select the order in which they use earned sick leave/TDI/FLI benefits. However, employees cannot double- or triple-dip by receiving earned sick leave and TDI or FLI benefits at the same time.

Key Takeaways

• Employers with as few as 15 employees will be covered, bringing many small businesses under the NJFLA for the first time.
• More employees will be eligible for NJFLA-protected leave, since the minimum employment period drops from 12 months to three months, and required hours worked decreases from 1,000 to 250.
• According to the NJDOL, an employee’s receipt of TDI or FLI benefits creates a reinstatement right that is independent of, and in addition to, any protection under the NJFLA or FMLA.
• The NJDOL also states there are no minimum employer size requirements or work history requirements to receive TDI or FLI benefits. Employees need only meet the earnings requirements for TDI or FLI benefits (work 20 weeks earning at least $310 per week or earn a combined total of $15,500 in the base year).

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.