In one of his final legislative moves, Governor Phil Murphy signed New Jersey Assembly Bill 3451, which drastically expanded the provisions of the New Jersey Family Leave Act (NJFLA). Businesses in New Jersey must be aware of these updates which are set to take full effect on July 17, 2026. Here is what you need to know.

More Small Businesses Are Now Covered

The NJFLA used to apply only to companies with 30 or more employees. That threshold is now dropping, bringing thousands of small and mid-sized businesses under the law for the first time:

• July 2026: Coverage begins for employers with 15+ employees.
• July 2027: The threshold drops to 10+ employees.
• July 2028: The threshold drops to 5+ employees.

The "Anywhere" Rule: If you have the required total headcount (even if most work out-of-state), having just one employee in New Jersey makes you a "covered employer."

Quicker Access for New Hires

The waiting period for job-protected leave has been reduced:

• Employment Length: Lowered from 12 months to 3 months.
• Hours Worked: Lowered from 1,000 hours to 250 hours in the past year.

Closing the "Job Protection Gap"

In the past, an employee might receive state cash benefits but have no guarantee their job would be waiting for them. The new law mandates job restoration for employees receiving Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI). Because TDI can last up to 26 weeks, this effectively creates a much longer window of job protection than the 12 weeks provided by federal law.

Higher Benefit Caps for 2026

To keep up with the cost of living, New Jersey has increased the financial support available to workers:

• Max Weekly Benefit: Increased to $1,119 (up from $1,081).
• Earnings Requirement: Workers must have earned at least $310/week for 20 weeks or $15,500 total in their base year.

Action Plan for NJ Employers

• Check Your Count: Determine if your company is impacted by the lowered employee headcount requirement.
• Revise Your Employee Handbook: Update the eligibility language in your handbook to reflect the new "3-month/250-hour" standard as well as notice and reinstatement policies.
• Coordinate Benefits: Employees can now choose the order in which they use their benefits, so make sure your payroll and leave tracking programs are in order.

If you are interested in learning more about how the recent amendments to the New Jersey Family Leave impact your business, feel free to contact me at cheyer@scura.com or call me at (973) 696-8391.