New Jersey's Legislature Expands Family Leave to Smaller Employers


WHAT YOU NEED TO KNOW


On January 17, 2026, Governor Phil Murphy signed legislation A-3451/S-2950, expanding the New Jersey Family Leave Act to include job-protected family leave rights to employees working for smaller employers; reducing the minimum employment duration required for leave eligibility; and establishing new job-protection provisions for employees taking medical leave while receiving state Temporary Disability Insurance (“TDI”) benefits. The law will become effective July 17, 2026.




Expanded Protection


A-3451/S-2950 lowers the threshold of employees for job-protected leave over three years, thereby expanding the number of employers that would have to comply with the law. The law lowers the employee threshold as follows:


  • Upon the effective date of July 17, 2026, employers with 15 or more employees;
  • One year after the effective date, employers with 10 or more employees; and
  • Two years after the effective date, employers with five or more employees.


The law also reduces the amount of time an employee has to be employed to be eligible for job-protected leave. Under the current law, an “employee” means a person who is employed for six months and who has worked not less than 1000 hours during the preceding 12-month period. Under the amended law, employees would be eligible for job-protected leave when they have been employed for three months and worked not less than 250 hours during the preceding 12-month period.


Additionally, A-3451/S-2950 requires employers to restore employees who take TDI or family temporary disability leave insurance benefits, upon their return from leave, to their original position or to an equivalent position with equivalent seniority, status, employment benefits, pay, and other terms and conditions.


Next Steps


Employers who are currently exempt from job-protected family leave obligations should consider the following in preparation for the law’s effective July 17, 2026, date:


  • Assess workforce size and growth projections - Evaluate current employee headcount and anticipated hiring over the next few years to determine when you may become subject to the expanded coverage thresholds.
  • Review and update leave policies – Review existing family and medical leave policies to identify gaps between current practices and the expanded eligibility, including reduced service-time, hours-worked requirements, and employee restoration.
  • Train management and HR personnel – Educate supervisors and human resources staff on the new job-protection obligations to ensure consistent handling of leave requests and to minimize the risk of retaliation or interference claims.
  • Audit employment practices and documentation - Confirm that timekeeping, record-retention, and job-restoration procedures are sufficient to support compliance once coverage applies.
  • Monitor legislative developments and implementation timelines - Monitor A-3451/S-2950’s progress and be prepared to implement compliance measures.

 

If you have any questions regarding compliance with the amended New Jersey Family Leave Act, please contact any member of the Employment and Workplace Management Group.




Elizabeth Butler

ebutler@kbrlaw.com




Diana-Marie Laventure

dlaventure@kbrlaw.com


kbrlaw.com


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