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New Jersey Broadens Family Leave Act Coverage, Effective July 17, 2026

Employers face upcoming compliance changes requiring policy updates before implementation.

Overview

  • Former Gov. Phil Murphy signed Assembly Bill A-3451/S-2950 on Jan. 17, 2026, enacting amendments to the New Jersey Family Leave Act and related TDI/FLI rules that take effect July 17, 2026.
  • Employer coverage under the NJFLA drops from 30 to 15 employees in 2026, with National Law Review reporting further reductions to 10 employees in 2027 and five in 2028.
  • Employee eligibility thresholds fall to three months of service and 250 hours in the prior 12 months, expanding access to job-protected family leave.
  • Employees who take Temporary Disability Insurance or Family Leave Insurance benefits gain reinstatement rights after leave, with some JD Supra analysis noting uncertainty about how broadly those job-restoration rights will apply.
  • The law clarifies that workers may choose the order of paid sick time, TDI, and FLI but cannot receive multiple paid benefits at the same time, and employers are advised to update handbooks, train managers, revise procedures, and prepare required postings.