New Jersey Expands FLA Protections Effective July 2026: What Employers Need to Know

Background

The New Jersey Family Leave Act (NJFLA) entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per 24-month period for bonding with a new child, caring for a seriously ill family member, or responding to certain public health emergencies. The law covers employers with 30 or more employees worldwide, and employees must have at least one year on the job and 1,000 hours worked in the preceding 12 months to qualify. Unlike the federal Family and Medical Leave Act (FMLA), the NJFLA does not cover an employee’s own serious health condition, but instead pairs with New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs, which provide partial wage replacement — funded through employee payroll contributions — when employees are out on qualifying leave. 

I. What Just Happened

On January 17, 2026, in one of his final acts as governor, Phil Murphy signed A3451/S2950 into law — the most sweeping overhaul of the NJFLA in years. The law takes effect July 17, 2026, dramatically expanding the universe of covered employers and eligible employees, potentially extending job protection to TDI and FLI recipients, and allowing employees more control over the sequencing of their leave benefits. Governor Murphy’s office estimates the changes will extend NJFLA protections to more than 400,000 additional New Jersey workers. Employers should move quickly to draft, review, or revise their existing NJFLA leave policies.

II. What’s Coming Up

Expansion in Employer Coverage 

A3451 reduces the 30-employee threshold in three phases, effective July 17, 2026, 2027, and 2028, from 15+ to 10+; and then 5+, worldwide. This headcount is based on total employees, so even an out-of-state business with only one employee in New Jersey (but at least five employees total) will be covered in 2028.

a.  Reduction in Employee Eligibility

A3451 reduces NJFLA eligibility standard from 12 months and 1,000 hours to three months and 250 hours. Because of this reduction, part-time workers, recent hires, and even seasonal employees may now qualify.  

b. Job Protection for TDI and FLI Recipients

Under current New Jersey law, TDI and FLI provide wage replacement, but not job protection.  A3451 changes that by requiring covered employers to reinstate employees taking TDI or FLI leave to the same or equivalent position upon return — with the same seniority, status, benefits, pay, and other terms of employment, including those governed by collective bargaining agreements. Note, however, that the statute simultaneously states that “nothing herein shall be construed as increasing, reducing or otherwise modifying any entitlement provided to a worker by the provisions of the [NJFLA].” As a result, it is not clear whether A3451 creates new, independent job protection rights for TDI and FLI recipients, or merely restates existing NJFLA reinstatement rights. 

As TDI and FLI apply universally to all New Jersey employers, the impact of this law is substantial. Employees could take a potential total of 38 weeks of job-protected leave in a single period, in addition to the 12 weeks provided by NJFLA, effectively requiring employers to provide job protection to an absent employee for 75% of the year. And failure to comply with these requirements could lead to civil suits by employees, seeking reinstatement, back pay and benefits, civil fines, injunctive relief, and attorney’s fees.

c. Employees Control of Paid Leave Sequencing

When choosing to use their earned sick leave and TDI or FLI benefits, employees now can select which to use first and in what order. Still, concurrent use of sick leave and TDI/FLI is prohibited, and employees may not “top off” TDI or FLI with sick leave to reach full pay. 

III. Key Takeaways

The core structure of the NJFLA remains intact: it provides up to 12 weeks of unpaid, job-protected leave per 24-month period, for qualifying family reasons only; an employee’s own serious health condition remains the province of TDI and the federal FMLA. Still, employers should proactively review their policies in advance of a substantial uptick in leave requests to:

• ensure no adverse action is taken on account of an employee’s exercise of TDI or FLI rights.
• allow for employee-selected consecutive — rather than concurrent — use of benefits.
• reflect the new eligibility tracking systems.

Newly covered employers will also need to build NJFLA compliance infrastructure from scratch — including ensuring compliance with notice requirements, documentation protocols, anti-retaliation protections, and reinstatement procedures — before July 17, 2026.  

IV. Open Questions

Do TDI and FLI carry independent job protection? If they do, an employee could be absent for up to 38 weeks in a 12-month period. Employers — especially smaller ones newly brought under the law — will need contingency plans.  

What if an employee is not FMLA-eligible or has exhausted FMLA leave? A prolonged TDI or FLI absence may trigger a reduction in hours sufficient to constitute a COBRA qualifying event.  Employers should review their group health plan terms and assess exposure, particularly for extended non-FMLA absences.

Crowell attorneys will closely watch for regulatory guidance on these questions, provide substantive updates, and help employers assess their compliance obligations and get their leave programs ready before July 17, 2026.

Contacts: Kris Meade, Andrew Bagley, Corey B. Hirsch-Lestienne