New Jersey Expands Family Leave Benefits

New Jersey expanded the New Jersey Family Leave Act (NJFLA) through Bill A-3451/S-2950, signed by Governor Phil Murphy on January 17, 2026.

Beginning July 17, 2026, the law will expand coverage to more employers and employees by:

• Lowering the employer coverage threshold from 30 employees to 15 employees
• Reducing employee eligibility requirements
• Expanding job protection for employees receiving Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI)

Additional employer coverage reductions will take effect in 2027 and 2028.

Key Information

• On Jan. 17, 2026, Gov. Phil Murphy enacted A-3451/S-2950, amending the New Jersey Family Leave Act (NJFLA) and expanding coverage to more employers and employees.
• The amendments take effect July 17, 2026 and employer coverage threshold will phase down over time.
• Employee eligibility will also expand.
• The update increases the maximum weekly benefit amount available to eligible workers.
• Family leave benefits apply when workers take leave to care for family members or bond with a new child.
• The changes reflect ongoing adjustments to New Jersey’s paid leave programs administered by the New Jersey Department of Labor and Workforce Development.

What is the New Jersey Family Leave Program?

The NJFLA provides eligible employees with 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
• Address certain public health emergencies affecting a child or family member

Currently, the NJFLA applies to employers with 30 or more employees. Employees must generally have:

• 12 months of service, and
• At least 1,000 hours worked in the prior 12 months

What Changes to NJFLA Start July 17, 2026?

Expanded Employer Coverage

Beginning July 17, 2026, NJFLA coverage will expand to include smaller employers.

The employer coverage threshold will phase down as follows:

This expansion will bring many small and mid-sized employers under NJFLA requirements for the first time.

Lowered Employee Eligibility Thresholds

Employees will qualify for NJFLA leave sooner:

• After three months of employment (down from 12 months)
• With 250 hours of service in the preceding 12 months (down from 1,000 hours)

Expanded Job Protection Rights

Employers must reinstate employees who take leave while receiving:

• Temporary Disability Insurance (TDI), or
• Family Leave Insurance (FLI)

Reinstatement must be to the same or an equivalent position with comparable pay, benefits, and seniority.

Employee Choice in Use of Leave Benefits

Employees eligible for paid sick leave, TDI, or FLI may choose the order in which to apply these benefits. However, employees may not receive more than one type of paid leave benefit simultaneously.

What Employers Should Do

Employers should begin preparing for the phased expansion of NJFLA coverage.

Recommended steps include:

• Review current leave policies for NJFLA compliance
• Determine whether your organization will become covered under the new lower employer thresholds
• Update internal policies and HR documentation before July 17, 2026
• Coordinate with payroll and HR teams to ensure correct administration of leave benefits
• Monitor additional guidance from the New Jersey Department of Labor

Resources & Further Reading

👉 New Jersey Legislature Bill A-3451/S-2950: https://www.njleg.state.nj.us/bill-search/2024/A3451

Key Takeaways

What changed in the New Jersey Family Leave Act in 2026?

New Jersey expanded the NJFLA through Bill A-3451/S-2950, lowering employer coverage thresholds and reducing employee eligibility requirements. The amendments take effect July 17, 2026 and will expand coverage to more employers and workers.

Which employers will be covered under the new NJFLA rules?

Beginning July 17, 2026, the NJFLA will apply to employers with 15 or more employees. The threshold will decrease to 10 employees in 2027 and 5 employees in 2028.

What are the new employee eligibility requirements?

Employees will qualify for NJFLA leave after three months of employment and 250 hours worked in the preceding 12 months, significantly lower than the previous requirements of 12 months and 1,000 hours.

Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.