NJ Family Leave Act Changes: What Small Businesses Must Do by July 2026

Just prior to leaving office, former Governor Phil Murphy signed sweeping amendments to the New Jersey Family Leave Act (NJFLA) into law, dramatically expanding coverage and eligibility thresholds and creating broader reinstatement rights and anti-retaliation protection for New Jersey employees.

Application of leave laws is generally one of the more difficult areas of employment law for smaller employers. To help ensure you are prepared, here is a recap of the NJFLA, the upcoming amendments, and the steps you should take now to ensure compliance before the July 17, 2026 effective date. 

The NJFLA, Currently

The NJFLA is a state statute that provides eligible employees with up to 12 weeks of unpaid, job-protected leave within a 24-month period to:

• Bond with a newborn or newly placed child,
• Care for a family member with a serious health condition, or
• Provide care for a child whose school or daycare is closed due to a public health emergency.

Currently, the NJFLA applies to employers with 30 or more employees. To be eligible for NJLFA leave, employees must have worked for the employer for at least 12 months and at least 1,000 hours in the 12-month period preceding leave. Following return from NJFLA leave, employees must be reinstated to the same or equivalent position.

While NJFLA leave is unpaid, employees may receive wage replacement benefits through New Jersey’s Family Leave Insurance (FLI) program. 

How Do the 2026 Amendments Change the NJFLA? 

1.      Expands Coverage, Smaller Employers Covered

The amendments phase in a reduced employee-count threshold so that many more of New Jersey’s smaller employers will be covered by the NJFLA:

 2.      Employees Qualify Much Faster

In addition to reducing the employer-size threshold, the hours-worked threshold to just:  

• three (3) months of employment, and
• 250 hours within the 12-month period preceding leave.

This means that more categories of employees will be eligible for NJFLA leave such as newer hires and part-time employees.

3.      Enhanced Job Protection and Anti-Retaliation Rights

The amendments strengthen job protections by:

• Requiring employees to be restored to their position or a position with equivalent seniority, pay, and benefits upon their return from not just family leave, but also from a leave wherein they were utilizing wage-replacement programs like FLI and Temporary Disability Insurance benefits (which generally apply to employees taking leave for their own disability).

• Explicitly providing employees the right to choose the order in which they take any statutory leave to which they are entitled (including earned sick leave).  

What Should You Do Now?

For many small businesses, this will be the first time the law applies to them. Unlike larger companies with dedicated HR teams, small businesses often operate with limited staffing flexibility and fewer administrative resources.  Small employers with lean staffing models should prepare for greater scheduling impact and be aware that these changes increase the risk of:

• Unintentional interference with protected leave,
• Improper denial of leave,
• Retaliation claims, and
• Failure to properly reinstate employees.

Proactive compliance planning is essential. Small employers should not wait until mid-2026 to prepare. Updating policies, training managers, and implementing internal procedures now will reduce operational disruption and legal risk. Below is a practical checklist to help small employers prepare for these changes.

For employers looking for more tailored, hands-on assistance, the dedicated employment team at LDGA is here to help.