On July 17, 2026, amendments to the New Jersey Family Leave Act (NJFLA) and the laws administering New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits took effect, expanding employer and employee coverage under the NJFLA and potentially increasing protections related to paid benefits from the state.
Employer Coverage Under NJFLA Threshold Drops from Thirty (30) Employees to Fifteen (15)
Prior to the amendment, the NJFLA covered employers with thirty (30) or more employees, and provided protected time off to employees who have been employed for at least twelve (12) months and worked at least 1,000 hours in the twelve (12) months preceding leave.
Under the amendments, the NJFLA’s employer‑coverage threshold decreased from thirty (30) employees to fifteen (15) employees anywhere, reflecting a substantial change for small employers, which were previously outside the law’s reach. Such employers will now have to comply with NJFLA, which requires up to twelve (12) weeks of unpaid job‑protected family leave in a twenty-four (24)‑month period for eligible employees. Employers newly covered by the statute must immediately implement comprehensive NJFLA processes for the first time, including notice requirements, documentation protocols, anti‑retaliation protections, and reinstatement obligations.
Employee NJFLA Eligibility Threshold Reduced to Three Months and 250 Hours
The amendments also significantly reduce the requisite length of employment and number of hours worked by an employee to become eligible for NJFLA leave. Instead of the previous twelve (12) month and 1,000‑hours worked thresholds, employees will be eligible for NJFLA leave upon completing only three months of employment and 250 hours worked for the employer in the preceding twelve (12) month period. Employers should anticipate greater utilization of NJFLA leave and must ensure that internal systems reflect these revised eligibility standards.
Amendments Regarding TDI and FLI Benefits
The amendments also affect the TDI and FLI laws, which provide partial wage replacement benefits to eligible employees otherwise on leave for qualifying reasons. As clearly stated on the state’s website, eligibility for TDI or FLI benefits is currently completely separate from an employee’s right to protected time off, and receipt of benefits does not guarantee job protection. This comes into play when an employee is eligible for FLI benefits but not NJFLA, due to the lower eligibility requirements for FLI. The amendments add language that covered individuals who receive TDI or FLI benefits “shall” be restored to the same or equivalent position following their leave, but also says: “nothing [herein] shall be construed as increasing, reducing or otherwise modifying any entitlement provided to a worker by the provisions of the ‘Family Leave Act’ [ ] to be restored to employment by the employer after a period of family disability leave,” making it unclear as to whether these amendments do, in fact, actually change anything. These amendments are in the statute governing benefits, and not the NJFLA, so it is unclear to what “leave” it refers.
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 of, but are not required to, use earned sick leave and may select the order in which they use earned sick leave and/or TDI or FLI benefits. Employees are not eligible to receive earned sick leave and/or TDI or FLI benefits at the same time, so earned sick leave may not be used to “top off” benefits received from the state.
Implementation Timeline and Looking Ahead
Because the amendments took effect on July 17, 2026, employers should immediately confirm coverage under the reduced 15‑employee threshold, update handbooks and internal policies, revise HRIS and payroll systems to capture the new eligibility rules and train supervisors and HR personnel on expanded protections. Employers newly covered by the NJFLA will need to build full leave‑administration processes, while those already covered should incorporate the revised eligibility and into existing systems.
If you have questions about how these changes may affect a pending or anticipated New Jersey legal issue, contact our office to discuss your specific circumstances.
