Canada (EN)
New Jersey has enacted significant amendments to the New Jersey Family Leave Act (FLA) and the state Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs via Assembly Bill 3451. Changes include a lower employer coverage threshold, faster employee eligibility, explicit job‑protection tied to paid TDI/FLI benefits, clarified restoration rights, and employee choice in sequencing TDI/FLI and Earned Sick Leave (ESL). The amendments take effect July 17, 2026.
Summary of key changes:
- Employer coverage threshold lowered
The FLA will apply to employers with 15 or more employees (down from 30), including out‑of‑state employers that have New Jersey-based employees.
- Faster employee eligibility
Eligibility will be 3 months of employment and 250 hours worked in the prior 12 months (previously 12 months and 1,000 hours), significantly expanding access to FLA leave.
- Job protection tied to TDI/FLI benefits
Employees who take TDI or FLI leave and receive benefits are entitled to job reinstatement upon return, closing a historical gap between paid benefits and job protection.
- Coordination with Earned Sick Leave (ESL)
Employees may choose which statutory paid leave to use, and in what order, among ESL, TDI, and FLI; however, they cannot receive more than one type of paid leave at the same time.
Employer action steps:
- Confirm coverage and employee counts to determine whether your organization meets the 15‑employee threshold.
- Update policies, handbooks, and templates to reflect new coverage rules, eligibility standards (3 months/250 hours), reinstatement obligations tied to TDI/FLI, and sequencing with ESL.
- Train HR and supervisors on eligibility triggers, employee‑controlled sequencing choices, reinstatement expectations, and documentation standards.
How Alight supports employers
Alight Leave Solutions will incorporate and implement the required changes where they affect Alight’s leave administration services. This includes updates on paid and unpaid family and medical leave offerings, as well as training our internal teams on the changes.
Disclaimer
This material is provided for general information purposes only and does not constitute legal advice. The information contained in this article reflects the legislative, statutory, and/or regulatory landscape as of the date of publication. Given the evolving nature of laws, regulations, and interpretive and official guidance, portions of this content may no longer be current. Readers should not rely on this content as a substitute for current compliance guidance and should consult the most up-to-date statutes, regulations, and guidance, and/or seek legal advice before acting on any information referenced herein.
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