New Jersey Department of Labor’s Guidance Clarifies Expanded Job Protected Leave Rights for Employees

New Jersey’s employment law landscape has shifted significantly.

As we reported earlier this year, former Governor Phil Murphy signed into law Assembly Bill 3451, effective July 17, 2026, which vastly expands New Jersey workers’ job protections. The New Jersey Department of Labor and Workforce Development (NJDOL) issued new guidance on the sweeping changes to job protection requirements under the state’s temporary disability insurance (TDI), family leave insurance (FLI), and Family Leave Act (NJFLA) amendments and published FAQs for employers and employees for TDI/FLI job protection. For employers across New Jersey, particularly smaller businesses, the implications are substantial and require immediate action.

Job Protection for TDI/FLI Benefit Recipients

The guidance and FAQs clarify that employees receiving state or private plan TDI or FLI benefits are eligible for job protection. This is a meaningful change to the Temporary Disability Law, which had been limited to providing wage replacement benefits. Unlike job protection under the NJFLA or FMLA, there are no employer size or employee tenure requirements to be eligible for job protection while receiving TDI or FLI benefits; eligibility depends solely on recent earnings sufficient to qualify for TDI/FLI benefits.

Further, job protections, which include the right to reinstatement following a covered leave, apply to leaves lasting up to 26 weeks, over twice the duration of protected leave provided by the FMLA and NJFLA. Under the new framework, employees receiving TDI/FLI benefits now have the right to return to their same position—or one with equivalent pay, benefits, seniority, and terms of employment—when their leave ends, so long as the employee’s leave is not already covered under NJFLA or the federal Family and Medical Leave Act (FMLA). This applies to workers at small employers, newer employees, some part-time workers, and employees receiving benefits related to domestic or sexual violence.

The FAQs also provide that employees are eligible for job restoration even if their period of leave commenced before July 17, 2026. In addition, the FAQs state that while an employee is waiting for a decision on their application for TDI or FLI benefits, their employer must assume they will be eligible for benefits and protect their job until a determination has been made otherwise.

Dramatically Lowered NJFLA Eligibility Thresholds

The NJFLA now covers employers with as few as 15 employees (down from 30), creating obligations for many small businesses entering the regulatory landscape for the first time. The employee eligibility threshold has also been dramatically reduced: the minimum employment duration has dropped from 12 months to just three months, and the required hours worked have dropped from 1,000 hours annually to 250 hours per year.

NJDOL’s guidance clarifies that NJFLA continues to provide eligible employees with up to 12 weeks of job-protected leave within a 24-month period to bond with a new child or to care for a family member with a serious health condition, and employees retain the right to return to the same position they held before taking leave.

What Remains Unchanged

NJDOL’s guidance also clarifies what has not changed:

• Benefit Eligibility Rules: Receiving TDI/FLI cash benefits still requires 20 weeks of earnings at $310+ weekly, or $15,500 earned in the base year.
• FMLA Requirements: FMLA thresholds (50+ employees, 12 months tenure, 1,250 hours) remain unchanged.

The Bottom Line for Employers

This guidance represents a significant expansion of leave protections in New Jersey. Small employers who were previously exempt now face compliance obligations, and all employers will be impacted by the protected leave periods that could extend to six months while an employee is on TDI/FLI benefits. Employers with employees in New Jersey should consider reviewing and updating:

• Employee handbooks and leave policies
• Manager training protocols
• Reinstatement procedures

The NJDOL indicated that additional regulatory guidance is forthcoming. We will continue to monitor the NJDOL’s anticipated guidance and keep you updated as additional clarity emerges on these significant changes.