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Published By Robert W. Small

January 22, 2026

Effective July 17, 2026, the New Jersey Family Leave Act (NJFLA) will undergo a major expansion that significantly broadens its reach. The amendments extend coverage to much smaller employers, shorten employee eligibility requirements, strengthen reinstatement and anti-retaliation protections, and formally coordinate NJFLA benefits with New Jersey’s Temporary Disability Insurance (TDI), Family Leave Insurance (FLI), and Earned Sick Leave laws.

These changes will have substantial compliance implications, particularly for small and mid-sized employers with New Jersey employees.

Key Changes Employers Need to Know

Expanded employer coverage

  • Effective July 17, 2026: NJFLA applies to employers with 15 or more employees
  • Effective July 17, 2027: Coverage expands to employers with 10 or more employees

These phased-in changes will require many small employers, some without formal leave policies or dedicated HR resources, to implement compliant leave practices or risk litigation and enforcement actions.

Reduced employee eligibility thresholds

  • Eligibility decreases from 12 months of employment and 1,000 hours worked to 3 months of employment and 250 hours worked.

Enhanced reinstatement and anti-retaliation protections

  • Employees who take leave under TDI or FLI have strengthened rights to reinstatement to the same or an equivalent position and expanded protection from retaliation.

Coordination and stacking of leave benefits

  • Earned Sick Leave will now be coordinated with TDI and FLI. Employees who qualify for multiple statutory leave programs may choose:
  • Which type of statutory leave to use, and
  • The order in which leave is taken,
  • Employees may not receive more than one type of paid leave at the same time.

The practical effect of this coordination is that leave stacking becomes easier, potentially resulting in longer overall leave periods.

Recommended Action Steps for Employers

Employers with New Jersey employees should begin preparing now by:

  • Understanding the expanded scope of NJFLA coverage and how it will apply to smaller employers.
  • Reviewing and updating leave policies, handbooks, and policy statements to reflect the expanded rights and benefits.
  • Ensuring payroll, HR, and leave-tracking systems are coordinated across Earned Sick Leave, TDI, FLI, FMLA, and NJFLA.
  • Training managers and HR personnel on the new leave framework, including leave sequencing and reinstatement obligations.
  • Anticipating longer employee absences and planning for workforce continuity.

To read the full text of the legislation, view the complete legislation.

To view former Governor Murphy’s press conference, watch the full press conference.

If you have questions about how these changes may affect your organization or would like assistance updating policies or compliance practices, please contact RRD Employment Practice Group Chair Robert W. Small at rsmall@regerlaw.com or 215-495-6500.