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Just prior to leaving office, New Jersey Governor Phil Murphy signed into law Assembly Bill 3451, significantly expanding the New Jersey Family Leave Act (NJFLA). The amendments expand employer coverage, broaden employee eligibility and strengthen job protection provisions for employees taking leave. According to the governor's office, these changes will extend job-protected leave to an estimated 400,000 additional New Jersey workers. The new law takes effect on July 17, 2026.
Summary of Key Changes
Expanded Employer Coverage
The amendments significantly lower the employee threshold for NJFLA coverage. Under current law, only employers with 30 or more employees are covered. Effective July 17, 2026, the coverage threshold will be reduced to 15 or more employees, regardless of where those employees are located. This expansion means that smaller employers—including those headquartered outside New Jersey with at least 15 total employees and one or more employees working in the state—will now be required to provide NJFLA leave and comply with the law's job-protection, notice and recordkeeping requirements.
Reduced Employee Eligibility Requirements
The law also dramatically lowers the service and hours thresholds required for employee eligibility, making it easier for workers to qualify for family leave. Previously, an employee must have worked for the employer for at least 12 months and logged at least 1,000 hours during the preceding 12-month period. Under the amended NJFLA, employees will be eligible for leave after just three months of employment and 250 hours of service during the preceding 12 months. These reduced thresholds mean that newer hires and part-time workers who previously did not qualify for NJFLA leave may now be eligible.
Enhanced Job Protection for TDI and FLI Recipients
The amendments also introduce significant new protections for employees who receive temporary disability insurance (TDI) or family leave insurance (FLI) benefits. Under the amended law, employees who take leave while receiving TDI or FLI benefits are entitled to be restored by the employer to the position held when the leave commenced, or to an equivalent position with like seniority, status, employment benefits, pay and other terms and conditions of employment. This provision arguably creates job-protected leave for employees collecting these benefits, even if the employee is not otherwise eligible for NJFLA leave. However, the law also states that it should not be construed as increasing, reducing or otherwise modifying any entitlement provided to a worker under the NJFLA. This language has created some ambiguity regarding the full scope of job restoration rights for TDI and FLI recipients, and employers should monitor forthcoming guidance from the state for clarification.
The law also establishes civil remedies for violations of the reinstatement provisions, permitting employees to bring a civil action in New Jersey Superior Court seeking civil fines (between $1,000 and $5,000), injunctive relief, reinstatement, compensation for lost wages and benefits, and reasonable costs and attorney's fees.
Employee Choice in Sequencing Leave Benefits
The amended NJFLA gives employees who are eligible for both New Jersey earned sick leave and TDI or FLI the right to choose which type of leave benefit to use first. Employees may select the order in which they take different kinds of available leave, though they may not receive more than one kind of paid leave simultaneously during any period of time.
What Remains Unchanged
Several core features of the NJFLA remain intact under the amendments. The law continues to provide eligible employees with up to 12 weeks of unpaid, job-protected leave during a 24-month period. Leave may still be taken only for qualifying family-related reasons, including bonding with a child after birth, adoption or foster care placement, caring for a family member with a serious health condition and responding to certain public health emergencies affecting a child or family member. The NJFLA still, however, does not provide leave for an employee's own serious health condition.
What This Means for Employers
Employers should take steps now to prepare for compliance with the amended NJFLA before the July 17, 2026, effective date. Key action items include the following:
Update Handbooks and Leave Policies
Employers should revise employee handbooks and leave policies to reflect the new eligibility criteria (three months of employment and 250 hours of service), expanded employer coverage thresholds and employee sequencing rights for leave benefits.
Revise Compliance Procedures
Employers should update eligibility tracking systems, leave request forms and approval workflows to align with the reduced eligibility thresholds.
Train HR Personnel and Managers
Human resources staff and supervisors should be trained on the new rules, including the expanded eligibility requirements, reinstatement obligations and anti-retaliation provisions.
Post Required Notices
When available, employers should display the updated NJFLA poster from the Division on Civil Rights.
Plan for Extended Absences
Given the potential for employees to be absent for extended periods while receiving TDI and FLI benefits (up to 26 weeks and 12 weeks, respectively), employers—particularly smaller businesses—should develop contingency plans for maintaining operations during these absences.
Conclusion
The 2026 amendments to the NJFLA represent a significant expansion of family leave rights in New Jersey. Employers of all sizes, including those newly covered by the law, should begin preparing now for the July 17, 2026, effective date. We will continue to monitor the implementation of these changes, including any regulations or guidance issued by state agencies, and provide updates as they become available.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
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