Labor & Employment Law Daily Wrap Up, EXPERT INSIGHTS—Final checklist to comply with New Jersey’s Family Leave Act overhaul, (Jul 16, 2026)

By Madeline B. Gayle, Rosemary S. Gousman, and Sarah Wieselthier of Fisher Phillips, LLC

A company with employees spread across several states may still be covered even if only a handful of employees work in New Jersey.

New Jersey employers must adapt to significant amendments to the New Jersey Family Leave Act (NJFLA) taking effect July 17. These changes will expand coverage to smaller businesses, reduce the waiting periods for new employees to qualify for leave, and create new job restoration and benefit selection rights. HR teams and managers should be ready to implement these changes on day one. Is your business ready? Read on for a recap of the new amendments and a final compliance checklist you can put to use right away.

Quick Refresher

We covered the substance of these changes back in January when the bill was signed (you can read that Insight here). As a refresher, here’s what changes on July 17:

UnderstandingtheIntersectionofNJFLAandFMLA071726.pdf

Remember: you must count all employees toward that 15-employee threshold, not just your New Jersey headcount. A company with employees spread across several states may still be covered even if only a handful of employees work in New Jersey.

Start With This Question

You should train your managers to respond to every leave request with the same question: Why is the employee asking for leave? The reason will help guide you about which law applies.

• Employee’s own serious health condition → FMLA (if applicable), the ADA/LAD as a reasonable accommodation, and/or NJ Earned Sick Leave

• Bonding with a new child → NJFLA and/or FMLA

• Caring for a family member → NJFLA, FMLA, and/or NJ Earned Sick Leave

• Qualifying public health emergency → NJFLA and/or NJ Earned Sick Leave

• Domestic violence or a sexually violent offense → NJ SAFE Act and/or NJ Earned Sick Leave

Your managers should not be making these calls on their own. Their job is to recognize that a request may involve protected leave and route it to HR immediately.

How the NJFLA and FMLA Work Together

The two laws overlap but are not identical, and after July 17 the gap between them widens in some employers’ favor and narrows in others.

KeyAmendmentstotheNewJerseyFamilyLeaveAct071726.pdf

The practical takeaway: Smaller employers that have never had to think about FMLA or NJFLA may now be covered by the NJFLA as of July 17. Because eligibility windows and qualifying reasons differ, leave under the two laws won’t always start or end at the same time, even for the same employee’s continuous absence.

Job Restoration: What’s Actually Changing

The job reinstatement piece of these amendments has caused some confusion since January, so it’s worth spelling out clearly.

Beginning July 17, employees who receive New Jersey Temporary Disability Insurance (NJTDI) or Family Leave Insurance (NJFLI) benefits will have job restoration rights. This means they are entitled to reinstatement to the same position or an equivalent position.

But NJFLI and NJTDI themselves are wage-replacement programs and don’t, by themselves, guarantee reinstatement rights. This aspect of the amendment has caused confusion, and we will need further guidance, whether through court interpretations, regulations, or clarification from the State.

Under the amended NJFLA, qualifying for NJFLI or NJTDI triggers an employee’s right to reinstatement. Job restoration obligations can also come from the FMLA, your own policies, or another law entirely. Don’t assume paying benefits satisfies your reinstatement obligations without checking which law is actually doing the protecting.

Employee Choice of Benefits

Employees who qualify for both paid sick leave under the Earned Sick Leave Act and temporary disability or family leave insurance benefits have the right to choose which benefit to use and in what order. You cannot require an employees to use these benefits simultaneously or dictate which one comes first. You can provide information about the available options, but you cannot make the choice for them.

What Managers Should (and Shouldn’t) Say

Managers are usually the first people employees approach about leave, and offhand comments that feel like normal workplace conversation can create legal exposure if they read as discouraging a request. Watch for:

• “We’re really short staffed right now.”

• “Can this wait until after our busy season?”

• “Who’s going to cover your work?”

• “You’ve already missed a lot of time this year.”

• “Are you sure you need to take leave?”

• “I don’t think you qualify for leave.”

A safer, simpler script: “Thank you for letting me know. I’ll connect with HR so we can review your request and discuss the leave options that may be available.” This response acknowledges the employee, makes no commitments, and gets the request to the people equipped to evaluate it.

Are You Ready? A Final Checklist

Before July 17, your organization should:

• Confirm your employee count (including out-of-state employees) against the new 15-employee threshold

• Review leave policies and procedures to reflect the amended NJFLA

• Update employee handbooks and leave request forms

• Train supervisors to recognize and refer leave requests to HR, not evaluate them

• Update training materials covering the common reasons employees request leave

• Coordinate with payroll, benefits, and leave administrators on consistent communication

• Review leave administration procedures for the amended job restoration provisions

Conclusion

If you have questions about how these changes affect your organization, please contact your Fisher Phillips attorney, the authors of this Insight, or any attorney in our New Jersey office. Please ensure you are subscribed to Fisher Phillips’ Insight System to gather the most up-to-date information.

Madeline B. Gayle, Rosemary S. Gousman, and Sarah Wieselthier

Fisher Phillips, LLC

URL: https://www.fisherphillips.com/

Attorneys: (Fisher Phillips).

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