July 2026
The legislation that expanded the NJ Family Leave Act (NJFLA) also created a new, separate job protection right tied to Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) benefits.
Beginning on July 17, employees on unpaid leave who are collecting TDI or FLI benefits get job protection even where NJFLA and the federal Family Medical Leave Act (FMLA) don’t apply. This includes workers already collecting these benefits, even if their leave began before July 17.
The New Jersey Department of Labor and Workforce Development (NJDOL) recently published FAQs for employers and workers that confirm the basics but leave open critical issues.
No size threshold. No tenure requirement.
TDI/FLI eligibility is based on earnings in covered employment. In 2026, an employee must earn at least $310 per week over 20 weeks or have earned a combined total of $15,500 in base year wages. Once an employee qualifies for benefits and their FMLA or NJFLA protection, if any, is exhausted or unavailable, the job restoration obligation applies regardless of how many people you employ or how long the employee worked for you.
The complaint process isn’t built yet, and its scope is still unclear.
The worker FAQ states that a worker can file a lawsuit in Superior Court or submit a complaint to NJDOL, but the NJDOL intake form has not yet been developed. The employer FAQ doesn’t address enforcement at all, so employers have no indication of what NJDOL will do once a complaint is filed. Will they investigate? Issue findings? Order reinstatement? None of that is defined yet, and we’ll share an update as more details become available.
Employers should assume eligibility while a claim is pending.
While an application for benefits is pending, the FAQ guidance advises employers to assume approval and protect the job until told otherwise. NJDOL mails employers a DS-7C notice when TDI benefits are approved, though it can take weeks or months to arrive, and it shows only which weeks were paid rather than the approved leave duration or any extensions granted. The FAQs don’t address how or when FLI claims are communicated to employers.
Given that gap, employers should consider a process going forward of asking the employee to confirm benefit status and expected duration at reasonable intervals, and keeping a record of those requests. That documentation can provide a clearer picture of where things stand while the state’s notification process catches up.
PTO can supplement TDI/FLI benefits, with one exception.
Employers can supplement TDI/FLI benefits with PTO, including from a general bank provided the PTO policy isn’t also being used to satisfy NJ Earned Sick Leave Law obligations. If a PTO bank is used for Earned Sick Leave Law compliance, it cannot be used to supplement TDI/FLI benefits.
NJFLA coverage is also expanding.
More workers will now qualify for job protection under the NJFLA as the employer coverage size threshold is dropping from 30 employees to 15 employees, and employee eligibility will kick in after 3 months of employment and 250 hours worked. As of the time of this publication, the Division on Civil Rights (DCR), which oversees NJFLA enforcement, has not yet issued updated guidance on this expansion.
EANJ members can access our updated NJFLA model policies here.
EANJ’s efforts
EANJ reached out to several hundred employers across the state, spanning a range of industries and business sizes, to assess the impact of these considerable amendments. As a result of our outreach, in-depth meetings were held with approximately 100 of those businesses to understand specific compliance and operational concerns.
Based on that outreach, EANJ continues to work with our legislators to enact a cleanup bill that adds an undue hardship exception to reinstatement, requires coordination with FMLA/NJFLA, and creates real-time employer notice communications from the NJDOL, among other things. That will take time and, in the meantime, the best approach for employers is to comply with the substantive obligations of these amendments and document your efforts, the circumstances and the actions you’re taking. As we continue to work with our legislators, we encourage you to reach out directly to EANJ with your continued concerns.