The New Jersey Family Leave Act (“NJFLA”) is expanding in July 2026, imposing major ramifications for small business in NJ. More employers than ever will be covered under The Act. Far more employees will be eligible for protected leave pursuant to the following changes:

• Employers with 15 to 30 employees will be covered by the law for the first time;
• The minimum employment period prior to leave will be lowered from 12 months to 3 months; and
• The required hours worked in the year prior to leave will be lowered from 1,000 to 250.

Further, any employee returning from leave related to their own medical condition who was eligible for Temporary Disability Insurance or Family Leave Insurance benefits must also be restored to the position held when the leave commenced or to an equivalent position of like seniority, status, employment benefits, pay, and other terms and conditions of employment.

Currently, the NJFLA provides eligible employees up to 12 weeks of unpaid, job-protected leave in a 24-month period for qualifying family events including: caring for a family member, bonding with a new child, or addressing certain school or care closures during a public health emergency.

Effective July 17, 2026, the law will significantly broaden coverage by applying to companies that employ 15 or more employees, regardless of where they are located. Even an out of state company that has 15 employees and only one located in New Jersey will be covered under NJFLA. Employee headcount will...

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