Legal Updates

On January 17, 2026, Governor Murphy signed into law A3451/S2950, significantly expanding employer coverage while also lowering employee eligibility thresholds as to employee access to job-protected leave under the New Jersey Family Leave Act (NJFLA). These changes will impact thousands of New Jersey employers starting July 17, 2026, including employers with less than 30 employees that were previously not covered by the NJFLA.

What is the NJFLA?

The NJFLA provides up to 12 weeks of job-protected leave in a 24-month period for an employee to bond with a child after birth, adoption, or foster care placement, or to care for a family member with a serious health condition. Employees are entitled to restoration to the same or equivalent position upon conclusion of the leave, and employers cannot retaliate against workers for taking NJFLA leave.

Note: NJFLA provides job protection, while New Jersey's Family Leave Insurance (FLI) program provides wage replacement while an employee is on a family leave. These often work in tandem with one another but are separate legal entitlements. Also, NJFLA does not provide any leave entitlement for an employee’s personal medical condition.  

What's Changing as of July 17, 2026?

The amendments make three critical changes:

1. More employers covered: Currently, an employer needs 30+ employees in the current or preceding calendar year to be covered by the NJFLA. As of July 17, 2026, the threshold number of employees will drop from 30 to 15 employees.
2. New hires are eligible sooner: Currently, an employee needs to be employed by the employer for at least 12 months to be covered by the NJFLA. As of July 17, 2026, the threshold will be reduced to 3 months of employment.
3. Service hour requirement adjusted: Currently, an employee needs to be employed by the employer for at least 1,000 hours during the preceding 12 months. As of July 17, 2026, the threshold will be reduced to 250 hours during the preceding 12 months.

What Employers Must Do by July 17, 2026?

1. Update your handbook: Employers with 15 or more employees must update their employee handbook to either incorporate a new policy addressing the NJFLA, or to amend an existing NJFLA policy to align with the new threshold requirements. [Employers with 50 or more employees – as to which the federal Family and Medical Leave Act applies – must also ensure their policies address the appropriate coordination of the NJFLA and the FMLA].
2. Post the required notice: Display the official NJFLA poster from the Division on Civil Rights in a visible location.
3. Revise your current compliance procedures:

What Employers Must Do by July 17, 2026?

a. Update eligibility tracking systems for the new 3-month/250-hour thresholds

b. Revise leave request forms and approval workflows

c. Train human resources and managers on the new thresholds, the requirements of the NJFLA, and how to properly administer a leave of absence including non-retaliation and reinstatement obligations.

Further Expanded Employer Coverage in 2027 and 2028

The amendments provide a phase-in schedule per which additional employers will be covered by the NJFLA in 2027 and 2028 as follows: 

• Effective July 17, 2027: Covers employers with 10+ employees in the preceding 12 months.
• Effective July 17, 2028: Covers employers with 5+ employees in the preceding 12 months.

Therefore, employers must determine when/if the NJFLA will be applicable to the business based on the preceding year’s employee headcount and prepare to comply.

Bottom Line: Employers with 15 or more employees should ensure they have a compliant NJFLA policy incorporated into their handbook (or otherwise distributed in writing) by July 17, 2026, and employers already covered should plan to update existing policies to reflect the new eligibility criteria and related administrative procedures.

Need Help?

Our employment law practice group regularly assists employers with handbook updates, NJFLA leave compliance, and practical training on how to administer leaves of absence. Please contact us to prepare for the effective date of July 17, 2026.