News Alert: Employers Must Prepare for Substantial Changes to the New Jersey Family Leave Act
Date: June 8, 2025
Sweeping amendments to the New Jersey Family Leave Act (NJFLA), reflected in A3451/S2950 signed into law by former Governor Phil Murphy, take effect on July 17, 2026. New Jersey employers must prepare to implement and enforce substantial changes relating to NJFLA coverage as well as New Jersey Temporary Disability Benefits and Family Leave Insurance. These amendments: (i) expand employer coverage under the NJFLA, (ii) lower NJFLA eligibility requirements for covered employees, and (iii) expand job protections for certain covered employees.
General NJFLA Requirements
Pursuant to the NJFLA, eligible employees may take up to twelve (12) weeks of unpaid job-protected leave within a 24-month period to care for: (1) or bond with a child within one year of the child’s birth, placement for adoption, or foster care; (2) a family member with a serious health condition; or (3) a child due to the closure of the child’s school or place of care due to an epidemic of a communicable disease or other public health emergency as declared by the Governor, the Commissioner of Health or other public health authority.
The NJFLA Following the Effective Date of the Amendments
As amended, and effective July 17, 2026, the NJFLA will cover more employers and extend protections for more employees. To be eligible for leave under the NJFLA amendments, employees must be employed for three months (as opposed to 12 months under the current NJFLA) and must have worked at least 250 base hours, rather than the current 1,000 base hours, during the immediately preceding 12-month period in order to be covered.
The employee threshold for employer coverage under the NJFLA will also be reduced from 30 to 15 employees, beginning July 17, 2026. On that date, employers will be covered under the NJFLA if they employ 15 or more employees for 20 or more calendar workweeks in the then-current or immediately preceding calendar year. Coverage extends to out-of-state employers who meet the applicable employee threshold and employ at least one individual in New Jersey.
Changes to Temporary Disability Leave
Effective July 17, 2026, employees claiming New Jersey Temporary Disability Benefits (NJTDB) and Family Leave Insurance (NJFLI) will also see an enhanced benefit: greater job protection. NJTDB provides payment of certain wages to covered employees who cannot work for medical reasons. NJFLI provides similar benefits to those caring for family members with medical needs or for other family-based reasons.
As of July 17, 2026, any covered employee who took any NJTBD or NJFLI shall, upon the expiration of the leave, subject to statutory exceptions, “be entitled to be restored by the employer to the position held by the employee when the leave commenced or to an equivalent position of like seniority, status, employment benefits, pay, and other terms and conditions of employment.”
Employers who fail to comply with the NJFLA’s mandates are subject to hefty fines and as such are encouraged to begin preparing for the massive changes to this law.
Comparison of Current to Amended NJFLA Coverage and Eligibility Thresholds
NJFLA Pre-Effective Date
- Employee must have been employed for at least 12 months by said employer.
- Employee must have worked a minimum of 1,000 base hours during the immediately preceding 12-month period.
- Employer must have employed a minimum of 30 employees.
Amended NJFLA
- Employee must have been employed for at least 3 months by said employer.
- Employee must have worked a minimum of 250 base hours during the immediately preceding 12-month period.
- Employer must have employed a minimum of 15
How Employers Can Prepare for the NJFLA Changes
- Covered employers who employ individuals working in New Jersey should plan to revise their leave policies and other documents and required notices, including their payroll records.
- To the extent that they are not already covered, employers must review employee records to determine if and when an employer will be considered a covered employer subject to the NJFLA’s mandates.
- Review relevant employee records to identify which employees are eligible for certain benefits and when.
- Employers should also be sure to train all necessary personnel regarding these changes to ensure proper legal compliance.
If you have questions about how these changes may impact your business or would like assistance updating your policies or practices, please contact Ira Saxe at isaxe@aystrauss.com, Glenn Azzinari at gazzinari@aystrauss.com, Gregory Skiff at gskiff@aystrauss.com, or Maria Harper at mharper@aystrauss.com.
