NJFLA, TDI, FLI Will Expand Who is Covered for Protected Leave

New Jersey Employers should mark July 17, 2026 on their calendars. On that date Amendments to the New Jersey Family Leave Act (“NJFLA”), along with changes that will impact Temporary Disability Insurance (“TDI”) and Family Leave Insurance (“FLI”) will significantly expand who is covered and who is eligible for protected leave in the workplace.

Currently the NJFLA provides up to 12 weeks of unpaid, job protected family leave in a 24-month period for eligible employees. The Amendments will broaden coverage in ways that will be particularly consequential for smaller employers and for employers that have previously treated partial wage-replacement benefits such as TDI and FLI as separate from job-protection obligations.

Here is what is changing, what is unclear, and how employers can prepare before July 17^th.

First, the Coverage Threshold drops which means that more employers will qualify. Currently, the NJFLA generally applies to employers with 30 or more employees. On July 17, 2026, that threshold drops to 15 employees. Smaller employers that were previously outside the reach are not covered for the first time. Multi-location employers should pay attention to how headcount is measured. The amended language reflects a lower threshold “anywhere”, which means employers should evaluate coverage carefully rather than assuming a single-site headcount.

Second, more employees will qualify and they will qualify faster. Under current law, employees generally become eligible after 12 months of employment and 1,000 hours worked in the preceding 12 months. Under the amended act, employees become eligible after 3 months of employment and 250 hours worked. This is a major expansion, and employers should anticipate that employees will qualify much earlier and leave requests will likely increase.

Third, there is a key shift with TDI and FLI regarding job protection. New Jersey’s TDI and FLI programs provide partial wage-replacement benefits. Historically, eligibility for these benefits has been separate from the employee’s right to job-protection during leave. Put differently, an employee could receive FLI benefits and still not have job protection under NJFLA. The Amendments add language indicating that employees who receive TDI or FLI benefits “shall” be restored to the same or equivalent position following leave which suggests a significant expansion of job protection which his tied to the receipt of these benefits. However, the amended act language is confusing and unclear. The amendment act also includes language stating that nothing should be construed as modifying any entitlement under the NJFLA regarding restoration after family disability leave. The statue appears to send two messages. Employers should monitor and expect clarification from the court and how they will interpret the “shall be restored” language.

Fourth, the Amendment act allows for the employee to use earned sick leave time and choose which they time they take first. The amendment act also addresses how earned sick leave interacts with TDI and FLI benefits. Employees with available earned sick leave have the option, but are not required, to use it, and they may choose the order in which they use earned sick leave and/or TDI and FLI. However, there is one important limitation, employees cannot receive earned sick leave and TDI or FLI wage replacement at the same time. This will need to be clearly communicated to employees and monitored and tracked carefully by employers so employees understand their options and payroll is processed correctly.

Overall, to prepare for the July 17, 2026 effective date, employers should consider these steps now, so they are ready for these changes:

Confirm coverage under the reduced 15 employee headcount
Update handbooks and internal policies now to reflect the new eligibility rules, coordination with other leave types, and job-restoration standards and make sure all employees are given this information.
Training for all employees but especially managers, supervisors, and Human Resources professionals, so they can properly communicate and identify these issues related to leave and benefits.
Consistent Documents and Procedure in place, that way the same forms and process is used every time
Contact experienced employment counsel to audit current practices and reduce the risk of inconsistent decisions.

The July 17, 2026 Amendments are not a minor adjustment, they are an expansion that will bring more employers under NJFLA, make more employees eligible sooner, and potentially link wage-replacement benefits to job protection and restoration in new ways. The employers that use the time now until the Amendments take effect on July 17, 2026 to align policies, train their leaders, and build repeatable processes will be best positioned to manage the increased leave requests and approvals while minimizing legal and operational disruption.

The NJFLA requires up to 12 weeks of unpaid job‑protected family leave in a 24‑month period for eligible employees.

*On July 17, 2026, amendments to the New Jersey Family Leave Act (NJFLA) and the laws administering New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits will take effect, expanding employer and employee coverage under the NJFLA.

Currently, the NJFLA covers employers with 30 or more employees, and provides protected time off to employees who have been employed for at least 12 months and worked at least 1,000 hours in the 12 months preceding leave.

Under the Amended Act, the NJFLA’s employer‑coverage threshold will decrease from 30 employees to 15 employees anywhere, reflecting a substantial change for small employers, which were previously outside the law’s reach.

Also under the Amended Act, instead of the previous 12‑month and 1,000‑hours worked thresholds, employees will be eligible for NJFLA leave upon completing only three months of employment and 250 hours worked for the employer in the preceding 12‑month period.

Before July 17, 2026, eligible employers must implement comprehensive NJFLA processes for the first time, including:

notice requirements,
documentation protocols,
anti‑retaliation protections, and
reinstatement obligations.

Employers should anticipate greater utilization of NJFLA leave.

The Amended Act also amends the Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) laws, which provide partial wage replacement benefits.

Currently, eligibility for TDI or FLI benefits is currently completely separate from an employee’s right to protected time off, and receipt of benefits does not guarantee job protection. As a result, an employee may be eligible for FLI benefits, but not NJFLA.

The Amended Act adds language that employees who receive TDI or FLI benefits “shall” be restored to the same or equivalent position following their leave. In other words, such employees would receive job protection that previously was not provided. However, the Amended Act also provides, “nothing [herein] shall be construed as increasing, reducing or otherwise modifying any entitlement provided to a worker by the provisions of the ‘Family Leave Act’ [ ] to be restored to employment by the employer after a period of family disability leave.”

In short, the Amended Act contains contradictory language.

The Amended Act also provides that employees who have available earned sick leave under New Jersey’s Earned Sick and Safe Leave Law have the option, but are not required, to use earned sick leave and may select the order in which they use earned sick leave and/or TDI or FLI benefits.

Employees are not eligible to receive earned sick leave and/or TDI or FLI benefits at the same time, so earned sick leave may not be used to “top off” TDI or FLI benefits.

To prepare for the July 17 Amended Act implementation date, employers should contact trained employment law counsel and: