As previously discussed, in January 2026, former Governor Phil Murphy signed A3451 (the “NJFLA Amendments”) into law, which amended the New Jersey Family Leave Act (“NJFLA”) (N.J.S.A. 34:11B-3) and the New Jersey Temporary Disability Benefits Law (N.J.S.A. 43:21-55.2). The amendments went into effect on Friday, July 17, 2026.
Here is a brief overview of the changes and what employers can expect:
1. Lower Employer Coverage Threshold under NJFLA
The Act now applies to employers with 15 or more employees in each of the 20 workweeks in the current or immediately preceding calendar year. This threshold is significantly less than the 30+ employees previously needed for employer coverage under the NJFLA. Note that when counting the number of employees, businesses must include all employees, even those employed outside New Jersey.
2. Lower Employee Eligibility Threshold under NJFLA
Employees are now eligible under the NJFLA if they work for a covered employer for at least 3 months and worked at least 250 hours in the 12 months immediately prior to the first day of leave. Previously, employees were required to have at least 12 months of service and 1,000 base hours during the preceding 12 months to qualify for leave.
3. Job Protection Extended to Employees Receiving FLI & TDI
This change and the next one are amendments to New Jersey’s Temporary Disability Benefits Law and involve employees receiving Family Leave Insurance (“FLI”) or Temporary Disability Insurance (“TDI”).
Now, employees receiving FLI or TDI benefits from either the State or through a private insurance plan have job protection and must be restored to their position or an equivalent position of like seniority, pay, and benefits upon their return from leave. Job protection under this law applies to employees whose leave is not already covered by the NJFLA or the Family Medical Leave Act.
The State issued FAQs on this portion of the NJFLA Amendments. According to the FAQs:
- Employees receiving FLI or TDI as of July 17, 2026 are entitled to job protection even if the employee’s leave began before that date.
- There are no minimum employer size requirements or work history requirements to be eligible for job protection while on unpaid leave and receiving FLI or TDI benefits. Thus, job protection for TDI/FLI recipients applies to small employers with less than 15 employees.
- Eligibility for FLI or TDI benefits is based on earnings. To qualify for these benefits in 2026, employees must have either: (1) worked 20 weeks earning at least $310 weekly; or (2) earned a combined total of $15,500 in the base year.
- Employees can receive up to 26 weeks of TDI benefits/job protection and up to 12 weeks of FLI benefits/job protection in a 12-month period.
- If an employee qualifies for FLI or TDI benefits because of their recent earnings from a previous employer, they are eligible for job protection in their new role while on leave and collecting FLI or TDI benefits. Again, job protection is not tied to a work history requirement.
- Employers must protect an employee’s job while the employee is waiting for a decision from the New Jersey Department of Labor as to whether they are eligible for FLI or TDI benefits.
- Employer notice requirements exist in the TDI/FLI law for employees depending on their reason for leave. Note that the Temporary Disability Benefits Law does not specify how far in advance employees must notify their employers of leave because many disabilities are unforeseeable.
4. Employees Can Choose Which Leave to Take if Multiple Options Available
Lastly, if an employee is eligible for both New Jersey Earned Sick Leave and either TDI or FLI, then the employee can choose to use either the Earned Sick Leave or TDI/FLI and can select the order in which the benefits are taken. Employers should be aware that now they have to allow employees to choose which benefit to use. Practically, this may not be different from what many employers are already doing because under New Jersey’s Earned Sick Leave Law, an employer cannot require employees to use such time.
The amendment also states that employees “shall not receive more than one kind of paid leave simultaneously during any period of time.” The State’s FAQs discuss whether employers may supplement an employee’s weekly TDI or FLI benefits with an employer-provided benefit, like PTO, so the employee will receive full wage replacement benefits during leave. Supplemental benefits, like PTO, may be provided in addition to TDI or FLI as long as the employer is not using PTO to meet the requirements of the Earned Sick Leave Law. But, if an employer uses PTO to meet the requirements of the Earned Sick Leave Law – in other words, the employer has a “one bucket PTO policy” and covers sick time through this policy – it cannot use accrued PTO to supplement the employee’s benefits. This appears to conflict with typical concurrent leave practices whereby employees are allowed to use earned sick time to supplement TDI or FLI benefits.
Employer Takeaways:
In light of these changes, employers should:
- Revise all policies, handbooks, forms, eligibility notices, and documents concerning reinstatement.
- Train HR professionals and supervisors on these changes.
- Update tracking systems to flag employee eligibility for leave and disability benefits as well as tracking all leaves because they may no longer be concurrent.
- Create contingency plans in case certain employees are out on extended leaves.
If you have any questions related to these amendments or need assistance preparing your workplace for compliance, please reach out to the Nukk-Freeman & Cerra Attorney with whom you typically work or call us at 973-665-9100.