What You Need to Know
- Expanded Employer Coverage — New Jersey's Family Leave Act will now apply to significantly smaller businesses, phasing down from 30 employees to eventually just 5 or more by 2028.
- Easier Employee Eligibility — Employees can now qualify for leave after just 3 months and 250 hours worked, down from the previous 12-month/1,000-hour requirement.
- Stronger Job Protection — Covered employees must be reinstated to an equivalent position after leave and treated as if they never took leave for layoff or recall purposes.
On January 17, 2026, Governor Phil Murphy signed A3451/S2950 into law, which significantly expands the NJ Family Leave Act’s (“FLA”) scope, taking effect in three stages. The first stage takes effect on July 17, 2026. From July 17, 2026, through July 16, 2027, the FLA will now cover all employers with 15 or more employees, as opposed to the previous 30 employee threshold. Then, from July 17, 2027, to July 16, 2028, that threshold will decrease to cover employers with 10 or more employees. Finally, from July 17, 2028, onward, the law will cover employers with just 5 or more employees.
The law also lessens the requirements for employee eligibility, reducing the eligibility requirement from 12 months and 1000 hours worked to 3 months and 250 hours worked. Importantly, employers are also required to reinstate covered employees at the end of their leave to an equivalent position with the same seniority and status. Employees returning from leave must be treated as if they had never taken leave for the purposes of any layoff or recall system.
Employees also have the right to elect overlapping paid leave benefits under New Jersey law. When an employee is eligible for both earned sick leave and either Temporary Disability Insurance (“TDI”) or Family Leave Insurance (“FLI”) leave benefits, the employee has the option of using sick leave or TDI or FLI benefits. However, the employee cannot receive more than one kind of paid leave simultaneously.
In light of these changes, employers should review their policies to ensure that they allow for employee-selected consecutive use of benefits and that they reflect the new eligibility tracking systems discussed above. Smaller employers who are newly covered as a result of this expansion will need to develop policies and a NJ FLA compliance infrastructure to avoid non-compliance and potential liability.
If you have questions about how these NJ FLA changes affect your organization please contact any member of Riker Danzig's Labor and Employment Law Group.
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