New Jersey Expands Job-Protected Leave for Employees Effective July 17, 2026

As of July 17, 2026, New Jersey significantly expanded job-protected leave for employees. The changes affect both New Jersey's Temporary Disability Insurance and Family Leave Insurance programs and the New Jersey Family Leave Act (NJFLA). As a result, many employees who previously qualified for paid leave benefits but did not have a corresponding right to job restoration now have job protection.

New Job Protection for Employees Receiving TDI or FLI Benefits

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) provide partial wage replacement benefits when an employee is absent for work for certain qualifying reasons. As of July 17, 2026, an employee’s job is protected if the employee receives TDI/FLI benefits from the State or a private plan, and the leave is not already covered under the NJFLA.  

When TDI or FLI leave ends, a covered employee is entitled to return to the position held before the leave or an equivalent position with comparable seniority, status, employment benefits, pay, and other terms and conditions of employment.

Importantly, this protection is not limited by the size of the employer and does not require an employee to have worked for the employer for a minimum period of time. Eligibility for TDI and FLI benefits continues to be based primarily on the employee's recent earnings. For claims beginning in 2026, an employee generally must have worked at least 20 weeks earning $310 or more per week, or earned at least $15,500 during the applicable base year.

The change is particularly important for small employers and newer and part-time employees who may previously have been eligible to receive TDI or FLI benefits without having an independent statutory right to return to their jobs.

More Employees Now Qualify for NJFLA Leave

The NJ Legislature also substantially expanded eligibility under the New Jersey Family Leave Act. Effective July 17, 2026:

• The NJFLA applies to employers with 15 or more employees worldwide, reduced from 30 employees.

• An employee generally needs only three months of employment, reduced from 12 months.

• An employee generally needs only 250 hours worked during the preceding 12 months, reduced from 1,000 hours.

  
  

The NJFLA continues to provide eligible employees with up to 12 weeks of unpaid, job-protected leave during a 24-month period to (i) bond with a child within one year of the child’s birth or placement for adoption or foster care, (ii) provide required care or treatment for their child if their school or place of care is closed by order of a public official due to an epidemic of a communicable disease or other public health emergency during a state of emergency, (iii)  to care for a family member with a serious health condition, or (iv) care for a family member who has been isolated or quarantined because of suspected exposure to a communicable disease during a state of emergency.

What New Jersey Employers Should Do Now

The July 2026 changes are particularly important for smaller New Jersey employers that may not previously have been subject to the NJFLA or accustomed to administering job-protected leaves. Employers should review their leave policies, employee handbooks and procedures for handling TDI and FLI leave requests and train managers responsible for administering employee leaves.

Employers also should be careful not to assume that an employee lacks job protection simply because the employee is new, part-time, or works for a small employer. Multiple federal and New Jersey leave laws may apply to the same absence, and determining which protections apply requires consideration of the particular circumstances.

New Jersey has indicated that formal rulemaking may result in additional policies, procedures and forms implementing the new law.

Employers with questions about changes to New Jersey TDI, FLI and FLA should consult experienced counsel. Fellig Schwartz, LLC counsels businesses and management throughout New York and New Jersey on employment law compliance, hiring practices, workplace policies, and employment disputes.

About the Author

Audra Schwartz is a partner at Fellig Schwartz, LLC, where she advises businesses and management on employment law compliance, workplace policies, restrictive covenant disputes, compensation issues, and business litigation matters throughout New York and New Jersey. She counsels employers on hiring practices, wage and hour issues, employee separations, discrimination and retaliation claims, and employment agreements.

This article is for informational purposes only and does not constitute legal advice nor does it create an attorney client relationship. Employers with questions about New Jersey leave laws or a particular employee leave request should consult employment counsel.