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New Jersey Enacts Changes to Leave Protection and Wage Replacement Laws

January 27, 2026

On January 17, 2026, New Jersey enacted a new law (Assembly Bill 3451) to expand eligibility and coverage under the New Jersey Family Leave Act (NJFLA), which provides qualifying employees with job-protected leave for certain recognized reasons.

Beginning July 17, 2026, the NJFLA would cover employers with 15 or more employees and would extend eligibility to employees who have worked at least three months and not less than 250 base hours during the preceding 12-month period. Under existing law, NJFLA leave protection only extends to employers with 30 or more employees and to individuals who have been employed for a minimum of 12 months.

In addition, the law amends the Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs, which provide partial wage-replacement benefits when an employee is absent from work for certain qualifying reasons. Under existing law, individuals who are receiving TDI/FLI benefits would not be eligible for NJFLA-protected leave. However, under the new law, an employee who receives TDI or FLI benefits will be “entitled to be restored by the employer to the position held by the employee when the leave commenced.” If an employer fails to reinstate an employee, the employee may institute a civil action seeking: 1) civil fine, 2) an injunction, 3) reinstatement, 4) compensation, and 5) payment of reasonable costs and attorney’s fees.

Covered employers with employees in the state will need to update their policies and procedures to align with the law’s provisions by July 2026.

For more information, read Assembly Bill 3451.

https://www.nfp.com/insights/new-jersey-updates-leave-and-wage-replacement-laws/
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