New Jersey Expands Family Leave Act (“NJFLA”) Benefits Effective July 17, 2026

On January 17, 2026, former NJ Governor Phil Murphy signed into legislation Assembly Bill 3451(A3451), which significantly expands the coverage of the NJFLA by bringing more employers and employees under its umbrella.

The date employers need to know is July 17, 2026, which is when the new law becomes effective. Below is a key summary of what employers need to know:

Expanded Coverage for Employers and Employees

Currently, the NJFLA applies to employers who have 30 or more employees (worldwide) and provides employees who have been employed for at least one (1) year and worked 1,000 or more hours during the preceding 12 months with 12 weeks of unpaid, job-protected leave during a 24-month period for qualifying family-related reasons.

Under the expanded NJFLA, employers with 15 or more employees are now covered. To calculate an employer’s headcount, the employer will need to review the number of employees  “for each working day during each of 20 or more calendar workweeks in the then current or immediately preceding calendar year.” As with the previous version of the NJFLA, this headcount is based on worldwide employees, not just those located in New Jersey.

Additionally, the new law drastically reduces the employee qualifications to be covered under the NJFLA. The employee eligibility requirements have been reduced by lowering the 1-year of employment threshold to just 3 months. The hours worked requirement has also been reduced from 1000 hours in the preceding year to just 250 hours within the preceding 12-month period.

These changes will significantly increase the number of employers that are required to comply with the NJFLA and will also increase the number of employees who are eligible. Smaller employers are encouraged to update their handbooks and policies in advance of the July 17, 2026, effective date of A3451.

Expanded Protections for Employees Using Temporary Disability or Family Leave Insurance Benefits

The updates to the NJFLA also provide job restoration benefits to employees who take leave under temporary disability insurance (“TDI”) or family leave insurance (“FLI”) benefits. Under the law, covered employers must reinstate an employee upon the conclusion of leave to the same position held prior to the leave or to a comparable role with equivalent seniority, status, compensation, benefits, and other terms and conditions of employment. The statute further provides that returning employees must be treated as though they had not taken leave for purposes of any layoff or recall system, including those governed by collective bargaining agreements. Although A3451 expressly states that it does not expand, limit, or alter rights under the New Jersey Family Leave Act (NJFLA), the amendments could be construed as effectively extending job-protected leave to employees receiving TDI or FLI benefits even when they are not concurrently on NJFLA leave.

Effects on Other Paid Leave Benefits

A3451 also gives employees flexibility in how they use overlapping paid leave benefits available under New Jersey law. When an employee qualifies for both earned sick leave and Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits, the employee may choose which benefit to use and in what order. However, the statute expressly prohibits the concurrent use of earned sick leave and TDI or FLI benefits. As a practical matter, this limitation may prevent employees from “topping off” TDI or FLI payments with sick leave to achieve full wage replacement for a single day of absence.

What to do Next?

Employers should take this opportunity to review their employee count to determine whether they are covered under the expanded NJFLA. It is also a good practice to review and update employee handbooks and policies to match the expanded employee eligibility requirements and reinstatement obligations. Finally, employers should update posters and notices and communicate with their employees regarding their expanded rights and protections under the NJFLA.

Obermayer’s Labor and Employment attorneys are available to assist with any questions or concerns regarding the updates to the NJFLA, and employee leave management in general.

The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.