NJ Labor Department Clarifies Employers’ Obligations for Workers’ Job Protection Under Temporary Disability, Family Leave Insurance Laws

Takeaways

• Effective 07.17.26, eligible New Jersey employees may receive up to 26 weeks of job-protection while receiving TDI benefits and up to 12 weeks while receiving FLI benefits, with reinstatement rights to their job or an equivalent position when the benefits end.
• By lowering eligibility thresholds under the New Jersey Family Leave Act (NJFLA), from 30 to 15 employees, 12 months to three months of tenure and 1,000 to 250 base hours worked in the prior 12 months, more employees are covered for leave under the NJFLA.
• Employers face new compliance and staffing obligations.

Related links

• NJ Expands Job Protected Leave for Workers
• Employers’ Frequently Asked Questions
• FAQ: Job-Protected Leave
• New NJ Family Leave Act Broadens Employee Access and Benefits, Complicates Employer Compliance

Article

The New Jersey Department of Labor (NJDOL) clarified that based on amendments effective July 17, 2026, the New Jersey Temporary Disability Law provides eligible employees up to 26 weeks of job protection while employees are collecting Temporary Disability Insurance (TDI) benefits and up to 12 weeks of job protection while they are collecting Family Leave Insurance (FLI) benefits.

The Law, signed by then-Gov. Phil Murphy shortly before leaving office, also extended the scope of the New Jersey Family Leave Act by reducing eligibility requirements as follows:

The NJDOL’s announcement is based on the following single sentence in the amendment to the Temporary Disability Law that extends reinstatement rights to recipients of temporary disability benefits:

Any covered individual who took any temporary disability benefits […] or family temporary disability leave benefits […] shall, upon the expiration of the leave, be entitled to be restored by the employer to the position held by the employee when the leave commenced or to an equivalent position of like seniority, status, employment benefits and other terms and conditions of employment[.]

The Temporary Disability Law does not contain any express provision for leave benefits. In fact, the NJDOL historically viewed the Temporary Disability Law as providing partial wage replacement benefits, not job-protected leave. However, through the amendment providing reinstatement rights at the conclusion of the receipt of benefits, New Jersey has effectively created a leave right more than twice as long as that provided under the federal Family and Medical Leave Act and the New Jersey Family Leave Act.

Moreover, the NJDOL’s announcement clarifies — in bolded terms — “There are no minimum employer size requirements or work history requirements with your current employer.” See NJ Expands Job Protected Leave for Workers. Rather, the announcement states that an employee need only meet the earning requirements for TDI or FLI to be eligible for job protection.

Currently, to be eligible for TDI/FLI benefits, employees must work 20 weeks, earning at least $310 or earn a combined total of $15,500 in the base year. As a result, an employee could be eligible to take up to 26 weeks of job-protected leave, if eligible for TDI benefits, and up to 12 weeks of job-protected leave, if eligible for FLI benefits, beginning on their first day of employment. In theory, employees who qualify for both TDI and FLI benefits could be eligible to take up to 38 weeks of leave in a single year even if they are not yet eligible for FMLA or NJFLA unpaid leave.

The amendments will affect employers of all sizes and may create significant operational challenges, particularly for small business that must hold positions for up to six months (or longer) while an employee receives TDI and/or FLI benefits. The NJDOL has indicated that additional guidance, regulations, and forms will be issued. For now, employers should review applicable policies and ensure compliance with the reinstatement requirements.

Jackson Lewis attorneys are available to answer your questions about these amendments and other workplace issues.