On January 17, 2026, Governor Murphy signed into law bill A-3451/S-2950, which significantly amends the New Jersey Family Leave Act (NJFLA). The amendment broadens coverage to more employers and employees and reshapes how employers coordinate paid and unpaid leave. The new law will become effective on July 17, 2026. Employers with employees working in New Jersey should carefully consider the expanded NJFLA requirements and prepare now for the operational and compliance impacts outlined below.
The amended NJFLA will now apply to employers with fifteen or more employees, regardless of where those employees are located. This means that small employers with at least 15 employees will need to provide up to 12 weeks of unpaid leave for eligible employees. Eligible employees are employees who (1) work in New Jersey; or (2) who routinely work in New Jersey and have their base of operations in New Jersey or have a place from which their work is directed and controlled in New Jersey. Below are the reasons for which an eligible employee may seek leave:
- The birth of a child of the employee;
- The placement for adoption or foster care of a child with an employee;
- The serious health condition of a family member of the employee; or
- In the event of a state of emergency:
- To provide in-home care or treatment of a child due to the closure of the school or place of care of the child of the employee, due to an epidemic or other public health emergency; and
- The need to care for a family member by an employee whose presence in the community, as determined by a public health authority or on the recommendation of a health care provider, would jeopardize the health of others.
This expansion means more New Jersey employers will be required to provide family leave and comply with the Act's job-protection, notice, and recordkeeping requirements.
The new law also reduces the NJFLA service and hours thresholds, making more workers eligible for family leave. Now employees with 3 months and 250 hours of service (during the prior 12 months) are eligible for NJFLA if they have a qualifying reason for leave. Previously, only employees with 12 months and 1000 hours of service were eligible.
These changes will increase the number of employees qualifying for job-protected family leave, including newer hires who may not have qualified under the current thresholds. The Office of the Governor estimates this amendment will reach 400,000 additional employees.
The new law also requires employers to restore employees who take temporary disability insurance (TDI) or family temporary disability (family leave insurance) (FLI) leave benefits, upon their return from leave, to their original position or to an equivalent position with equivalent seniority, status, employment benefits, pay, and other terms and conditions, consistent with NJFLA job-protection principles. Employers should align their disciplinary, attendance, and performance-management practices to ensure no adverse action is taken because an employee exercised rights to TDI or FLI benefits.
Finally, the new law requires employers to allow employees who are eligible for paid sick time and either TDI or FLI to choose which type of leave or leave benefit to take first, provided that only one type of paid leave will apply at a time. All employers should reassess their family leave policies to ensure sequencing rules allow consecutive use and avoid offsets or simultaneous depletion of paid sick time.
We will continue to monitor the implementation of A-3451/S-2950, including any regulations implemented in accordance with the law, in advance of its July 2026 effective date. If you have any questions regarding the Family Leave Act or your business's operations, please reach out to the authors or your regular Saul Ewing attorney.
