New Jersey Expands Rights Under the New Jersey Family Leave Act
•February 10, 2026
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Why It Matters
The expansion brings millions of workers at smaller firms under NJFLA protection, increasing compliance burdens for employers while enhancing caregiver benefits. Ambiguities around TDI/FLI job protection could trigger litigation and require regulatory clarification.
Key Takeaways
- •Employer threshold lowered from 30 to 15 employees.
- •Eligibility reduced to three months and 250 hours.
- •TDI/FLI benefits' job protection remains ambiguous.
- •Employees can choose paid sick leave or TDI/FLI.
Pulse Analysis
The New Jersey Family Leave Act (NJFLA) has long been a cornerstone of the state's employee‑benefit landscape, granting up to 12 weeks of unpaid, job‑protected leave for caregiving responsibilities. Effective July 17, 2026, Assembly Bill 3451 expands the statute’s reach by lowering the employer coverage threshold from 30 to 15 workers and trimming employee eligibility to three months of service and 250 hours worked. This shift mirrors a broader national trend toward more inclusive family‑leave regimes, positioning New Jersey alongside states such as Connecticut and Washington that have recently broadened coverage for smaller businesses.
For employers, the amendment translates into immediate compliance obligations. Companies with 15‑29 employees, previously exempt, must now draft or revise handbooks, integrate the new eligibility criteria, and train HR staff on the revised leave request process. While the unpaid nature of NJFLA leave limits direct payroll impact, indirect costs—such as temporary staffing, workflow adjustments, and potential overtime for remaining staff—may rise. Early policy updates and clear communication can mitigate disruption and help businesses maintain productivity during the transition.
The bill also intertwines NJFLA protections with Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits, but the language leaves open whether employees receiving TDI/FLI for their own serious health condition gain the same job‑restoration rights as NJFLA caregivers. This ambiguity could spark litigation or prompt the Department of Labor to issue clarifying guidance. Additionally, the new provision allowing workers to elect between paid sick leave and TDI/FLI benefits adds flexibility but requires careful tracking to avoid overlapping paid leave. Employers should monitor forthcoming regulations to ensure consistent application.
New Jersey Expands Rights Under the New Jersey Family Leave Act
by Vincent N. Avallone, George P. Barbatsuly, Timothy J. Nichols, K&L Gates LLP
Tuesday, February 10, 2026
On 17 January 2026, outgoing New Jersey Governor Phil Murphy signed into law Assembly Bill No. 3451 (AB 3451), expanding the category of employers covered by the New Jersey Family Leave Act (NJFLA) and the employees eligible to take leave under the NJFLA. Previously, the NJFLA applied only to employers with 30 or more employees; starting on 17 July 2026, the NJFLA will now cover employers with 15 or more employees. The changes also broaden employee eligibility by reducing the length‑of‑service requirements. AB 3451 also introduces amendments regarding employees who use Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits that raise a question regarding job reinstatement rights for those employees.
NJFLA Summary
The NJFLA affords eligible employees up to 12 weeks of unpaid job‑protected leave during a 24‑month period to:
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Care for or bond with a child within the first year of the child’s birth or placement through adoption or foster care;
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Care for a family member (or family‑member equivalent) with a serious health condition; and
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During a state of emergency, either care for a family member (or family‑member equivalent) who has been isolated or quarantined because of suspected exposure to a communicable disease, or provide care or treatment for a child if the child’s school or place of care is closed by order of a public official due to an epidemic or other public‑health emergency.
Employees returning from NJFLA leave generally must be restored to the position they held immediately before the leave or reinstated to an equivalent position of like seniority, status, employment benefits, pay, and other terms and conditions of employment. Notably, the NJFLA does not provide eligible employees with job‑protected leave for their own serious health condition.
Expansion of NJFLA Coverage
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Employer threshold: Currently, only employers with at least 30 employees for each working day during 20 or more calendar weeks in the current or immediately preceding calendar year are covered. When the amendments take effect on 17 July 2026, that threshold will be reduced to 15 employees.
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Employee eligibility: At present, employees must have worked for their current employer for at least 12 months and logged at least 1,000 hours in the 12 months immediately preceding the requested leave start date. Under the amended NJFLA, employees will become eligible after working for at least three months and completing 250 hours in the preceding 12 months.
TDI and FLI Benefit Amendments
AB 3451 provides that any employee who takes leave for which they receive TDI or FLI benefits “shall” be entitled to the same job protections as provided under the NJFLA. However, the bill also states that “nothing … 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 temporary disability leave.”
Because the NJFLA does not grant job‑protected leave for an employee’s own serious health condition (though TDI benefits may be received during such leave), it is unclear whether AB 3451 creates new job‑protection rights for employees who take TDI or FLI benefits, or merely confirms that employees who take NJFLA leave and receive TDI/FLI benefits during that leave retain the existing NJFLA protections.
Employee Choice of Benefits
AB 3451 also allows employees who are eligible for paid sick leave under New Jersey’s Earned Sick and Safe Leave Law and who are eligible for either TDI or FLI benefits to choose between using paid sick leave or the applicable TDI/FLI benefits, and to select the sequence in which they take the different kinds of leave. The bill clarifies that employees shall not receive more than one kind of paid leave simultaneously.
Considerations for Employers
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Employers with 15 to 29 employees, who are currently not covered by the NJFLA, will have obligations beginning 17 July 2026.
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All employers (both currently covered and newly covered) should update handbooks and leave policies to reflect the reduced eligibility thresholds.
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HR personnel should be trained on the new rules, and changes should be communicated to employees well before the July 2026 effective date.
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Employers should monitor forthcoming state guidance on the open questions concerning TDI and FLI benefit amendments.
Our lawyers in the Labor, Employment and Workplace Safety practice will continue to monitor the implementation of rules, additional amendments, and other updates.
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