New Jersey has enacted Assembly Bill 3451, which amends the state’s Family Leave Act. The bill makes changes to employer coverage under the Act, adjusts when employees qualify for leave, and clarifies employer responsibilities when an employee returns from certain types of protected leave. It goes into effect on July 17, 2026.
Regarding employer coverage, the bill extends coverage to more employers by lowering the minimum employee count required for an employer to be subject to the law. Employers are now covered if they employ 15 or more employees, down from the prior threshold of 20 employees, for each working day during 20 or more calendar workweeks in the current or immediately preceding calendar year.
The bill also expands employee eligibility by:
reducing the time an individual must be employed before qualifying for family leave and related benefits from six months to three months, and
lowering the number of base hours that must be worked during the prior 12‑month period from 500 to 250 hours.
The bill also addresses what happens when an employee returns from temporary disability or family temporary disability leave. Covered employers are required to return the employee to the same position held before the leave or to a comparable position with similar seniority, pay, benefits, status, and other employment terms. Employees must also be treated as if they had not taken leave for purposes of any applicable layoff or recall rights.
In addition, employers may not take adverse action against employees for requesting or using temporary disability or family temporary disability benefits, including failing to reinstate an employee when required. Employees who are eligible for both earned sick leave and disability‑related benefits may choose which type of leave to use and decide the order in which leave is taken, as long as they do not receive more than one type of paid leave at the same time. Courts may impose civil fines and order remedies such as reinstatement, back pay, restoration of benefits and seniority, injunctive relief, and payment of attorneys’ fees and costs if violations occur.
As these changes approach their effective date, HR departments may want to review existing policies, procedures, and training materials to ensure alignment with the updated requirements. Areas for review may include:
Employer Coverage Thresholds
Assess workforce size to determine whether the organization now meets the revised definition of a covered employer.
Employee Eligibility Requirements
Update eligibility assessments to reflect the reduced employment‑length and base‑hour requirements.
Reinstatement After Covered Leave
Review return‑to‑work practices to ensure employees are restored to the same or an equivalent position with comparable terms and conditions of employment.
Layoff and Recall Rights
Confirm that employees returning from covered leave retain applicable rights under layoff and recall systems.
Anti‑Retaliation Protections
Review policies to ensure adverse actions are not taken based on an employee’s request for or use of covered leave.
Coordination of Leave Options
Ensure leave administration practices allow employees to choose between earned sick leave and applicable disability‑related benefits and to determine the order of leave usage.
Training and Compliance Awareness
Provide guidance for HR staff and managers on reinstatement obligations, leave coordination, and potential consequences of noncompliance.
