New Jersey’s family leave landscape continues to evolve and expand in 2026. On January 17, 2026, as one of his last acts in office, New Jersey Governor Phil Murphy signed into law significant changes to the New Jersey Family Leave Act (“NJFLA”), dramatically expanding coverage and job protection. The changes take effect this summer, but employers should familiarize themselves with these changes now and be ready to ensure compliance.
The NJFLA provides eligible employees with up to 12 weeks of job protected leave in a 24-month period to care for family members with serious health conditions, to bond with a newborn, bond with an adopted child or foster child, or to provide care to a child if their school or daycare is closed during a state of public health emergency.
The first phase of change takes effect July 17, 2026, when the new law will cover employers with 15 or more employees (whereas it previously covered employers with 30 or more employees). Next year, and effective July 17, 2027, the new law phases an additional threshold reduction to employers with 10 or more employees. The year after, and effective July 17, 2028, it phases in an even further threshold reduction to employers with only 5 or more employees.
Additionally, to be eligible for New Jersey Family Leave Act leave, employees only need to have been employed for at least three (3) months and worked not less than 250 base hours during the preceding 12-month period. (Previously, employees had to have been employed at least 12 months and worked at least 1,000 base hours during that 12-month period).
The new law also provides a prohibition against failing to reinstate an employee who has received Temporary Disability Insurance benefits (“TDI”) or Family Leave Insurance (“FLI”). To receive FLI benefits, the employee must have worked 20 weeks and earned at least $15,500 in a base year. Therefore, an employee may be eligible for NJFLA leave, but not FLI insurance because of the lower eligibility threshold. Currently, TDI and FLI are partial wage replacement, but they do not provide job protection. Under the new law, failing to reinstate an employee who has received TDI or FLI benefits exposes an employer to a potential civil action in which the employee can seek a civil fine, injunction, reinstatement, back pay and benefits, court costs and attorney’s fees.
Finally, the new law provides the option for employees to use New Jersey Earned Sick Leave or receive TDI or FLI benefits, and the order in which it is utilized. Although employees cannot use both sick leave and TDI/ FLI benefits at the same time, they can choose the sequencing of the use of either benefit.
Employers with operations in New Jersey should take proactive steps now to ensure compliance and reduce risk. Covered employers should be careful to track eligibility of employees and be prepared for employee requests for leave under NJFLA. Covered employers should consider contacting legal counsel for assistance with legal compliance questions.
If you are a company or a professional tasked with compliance of this law, and you seek assistance with any of the aforementioned, please contact the Employment Law Group of the law firm of Davison Eastman Munoz Paone, P.A. at 732.462.7170 or [email protected].
THIS IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. THIS DOES NOT CONSTITUTE LEGAL ADVICE.
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