New Jersey Expands Family Leave and Disability Insurance Laws
New Jersey’s A 3451 was signed by the governor on January 17, 2026. Starting July 17, 2026, New Jersey will significantly expand coverage under the New Jersey Family Leave Act (NJFLA). The temporary disability insurance (TDI) and family leave insurance (FLI) laws will also add job protections and clarify how benefits coordinate with earned sick leave.
NJFLA Expansion
The NJFLA will be expanded to cover employers that have 15 or more employees. Additionally, it will be broadened to apply to employees who have been employed for at least three months and have worked at least 250 base hours in the previous year. (Currently, the law applies to employers with 30 or more employees and to employees who have been employed for at least a year with at least 1,000 base hours worked).
TDI and FLI Updates
Job Protection
Employees who use TDI or FLI benefits will be entitled to job protections that mirror those provided under the NJFLA.
Employers will be required to reinstate returning employees to the same position they held before the leave or to a position with equivalent seniority, status, benefits, pay, and other terms and conditions of employment. Employees will also retain any rights under a layoff and recall system as if they hadn’t taken leave. This change effectively makes TDI and FLI new forms of protected leave rather than just insurance benefits.
Coordination with Earned Sick Leave
Employees who are eligible for both earned sick leave and either TDI or FLI will have the right to choose the order in which they use each type of paid leave. However, they can only use one type of paid leave at a time.
Action Items
If you have 15 or more employees, post the NJFLA notice in a conspicuous location in the workplace by July 17 if you don’t currently have it posted.
If you have a policy addressing the NJFLA, TDI, or FLI, amend those as appropriate.