Outgoing Governor Phil Murphy signed a major expansion of New Jersey's Family Leave Act into law on Jan. 17, 2026, extending job-protected medical leave protections to over 400,000 additional workers across the state.
The new law, Assembly Bill 3451 and Senate Bill 2950, represents one of the most significant changes to New Jersey employment law in recent years. The legislation dramatically lowers the barriers for workers to access family and medical leave while requiring smaller employers to comply with expanded protections.
Broader Access for Newer Employees and Small Business Workers
Beginning Jul. 17, 2026, when the law takes effect, employees will qualify for protected leave after just three months of employment if they have worked 250 hours during that period. Previously, workers had to spend a full year at their job and accumulate 1,000 hours before becoming eligible, according to Ogletree. This change particularly benefits newer hires and part-time workers who could not previously access protections.
The expansion also extends coverage to smaller employers. Starting in July 2026, the law applies to employers with 15 or more employees, down from the previous threshold of 30 employees. The thresholds will continue shrinking over time, dropping to 10 employees in July 2027 and five employees by July 2028.
New Medical Leave Protections
Perhaps most significantly, the law adds job protection for workers taking leave for their own serious health conditions through New Jersey's Temporary Disability Insurance program. Under the previous law, workers could receive wage replacement benefits for up to 26 weeks while recovering from injuries or illnesses, but had no guarantee of getting their job back, McCarter reported.
The new law requires employers to restore workers to their original position or an equivalent role with the same seniority, pay, and benefits when they return from medical leave. This protection applies to both Temporary Disability Insurance and Family Leave Insurance benefits.
Leave Usage Flexibility
The expansion also gives workers new flexibility in managing their leave. Employees eligible for both earned sick leave and Temporary Disability or Family Leave Insurance benefits can now choose the order in which they use these benefits, though they cannot collect multiple types of paid leave simultaneously.
The legislation affirms New Jersey's commitment to supporting working families. Advocates say the changes eliminate long-standing fears among workers at smaller companies that taking needed medical or family leave would cost them their jobs, as per NJBiz.
