New Jersey is one of the latest states to implement paid family leave. If you’re a business owner in the Garden State or have employees who live there, you’re responsible for adhering to the state’s leave laws—and giving employees their rightful leave benefits.
Below, we’ll explain how New Jersey’s program works, how state leave interacts with federal leave, and what employers should do to maintain compliance.
What is New Jersey’s paid family leave program?
New Jersey has two types of state-mandated employee leave: unpaid leave and paid leave.
New Jersey’s unpaid family leave: The New Jersey Family Leave Act
The New Jersey Family Leave Act (NJFLA) gives eligible employees up to 12 weeks of unpaid, job-protected leave in a 24-month period. Employees can take unpaid leave to bond with a new child, care for a seriously ill family member, or care for a child when their school or place of care is closed for an emergency.
Thanks to Assembly Bill 3451, which former Governor Murphy signed into law in January 2026, leave eligibility requirements for employees have relaxed. Starting in July 2026, employees are eligible for unpaid leave if:
Their employer has at least 15 employees (previously, the requirement was 30 employees)
They’re employed for at least three months (previously, the requirement was 12 months of employment)
They have worked at least 250 hours during the 12-month period preceding leave (previously, the requirement was 1,000 hours of work)
The new law also updated New Jersey’s Family Leave Insurance (FLI) and Temporary Disability Insurance (TDI) programs. Let’s break those down.
New Jersey’s paid family leave: Family Leave Insurance
Family Leave Insurance (FLI) gives New Jersey employees paid leave to bond with a new child (whether born, adopted, or fostered) or care for a seriously ill or injured loved one.
Employees can receive up to 12 weeks of cash benefits in a 12-month period if they take their leave all at once. If they take intermittent leave—a few weeks here and a few weeks there—they can get up to 56 individual days of paid leave over a 12-month period.
The amount of benefits an employee receives depends on their typical wages. Employees are paid 85% of their average weekly wage, up to the year’s maximum. For 2026, the maximum weekly benefit rate is $1,119 per week.
FLI is funded entirely by employee payroll deductions; employers set aside a portion of their employees’ paychecks for FLI contributions. In 2026, employees contribute 0.23% on the first $171,100 in covered wages they earn, and the maximum contribution they can make is $393.53.
It’s important to note that FLI gives cash benefits, not job protection. Job protection is separate and guaranteed under the NJFLA for eligible workers.
Who qualifies for FLI?
Employees have to pay into FLI and earn a certain amount to receive benefits. To qualify for FLI in 2026, New Jersey employees have to:
Have worked 20 weeks in their base period, earning at least $310 each week or
Have earned a combined total of $15,500 in their base period
The base period is a 52-week timeframe that the New Jersey Department of Labor and Workforce Development uses to calculate an employee’s wages. When the base period begins depends on the month an employee’s leave starts (see the chart here).
Not every employee can pay into FLI, though. There are four types of employees who don’t qualify for FLI:
Federal government employees
Out-of-state employees
Faith-based organizations
Independent contractors
New Jersey’s paid medical leave: Temporary Disability Insurance
New Jersey has another type of paid leave employers are obligated to provide: temporary disability insurance (TDI). Also sometimes called medical leave, TDI leave is available to eligible employees who take time off work due to a non-work-related health condition or disability.
Think: extended illness, surgery, a hospital stay, pregnancy-related health conditions, or recovery from childbirth. Employees can take up to 26 weeks off work and receive weekly benefit payments.
Like FLI, TDI is a wage replacement program, not a job protection program. Qualifying is similar to qualifying for FLI. In 2026, employees need to have worked 20 weeks in their base period, earning at least $310 each week, or have earned a combined total of $15,500 in their base period. Benefit amounts are usually 85% of an employee's average weekly wage, up to a cap.
Unlike FLI, though, TDI is funded by employee and employer contributions. If you have employees in New Jersey, you need to give them disability coverage through a private insurance plan or deduct payroll taxes for your employees.
In 2026, employers contribute between $44.80 and $336.00 on the first $44,800 earned by each employee during this calendar year.
How do New Jersey’s leave laws interact with federal leave laws?
New Jersey’s paid family leave offering—FLI—isn’t the same thing as NJFLA leave, disability leave, or leave under the federal Family and Medical Leave Act (FMLA).
As a reminder, FLI gives employees up to 12 weeks of paid parental and caregiving leave, and TDI provides up to 26 weeks of paid disability leave. NJFLA, meanwhile, offers employees up to 12 weeks of unpaid, job-protected leave.
Similarly, FMLA is a federal law that requires all US employers with at least 50 employees to offer eligible employees 12 weeks of unpaid, job-protected leave for bonding purposes, caregiving duties, medical reasons, and military exigency leave.
In New Jersey, some of your employees might be eligible for all four programs: FLI benefits, TDI benefits, NJFLA leave, and FMLA leave. The programs run concurrently, which means lots of protections overlap.
Say, for example, that one of your employees takes parental leave to bond with their new baby. They might qualify for disability benefits as part of their childbirth recovery, as well as up to 12 weeks of FLI benefits.
If they also qualify for unpaid leave under NJFLA (which tends to be easier than qualifying for FMLA leave), they’ll also receive job protection for up to 12 weeks and continued health insurance.
What’s the difference between FLI, TDI, FMLA, and NJFLA?
The leave programs differ when it comes to payments, job protection, and eligibility requirements.
New Jersey FLI | New Jersey TDI | FMLA leave | NJFLA leave | |
Eligibility reasons | Bonding with a new child (applies to born, adopted, and fostered children); caring for a seriously ill or injured loved one (includes a wide variety of people) | A physical or mental health condition unrelated to work (includes pregnancy and childbirth) | Bonding with a new child; personal health conditions; caring for a family member who has a serious health condition; military exigency leave | Bonding with a new child; caring for a family member who has a serious health condition; caring for a child in the event that an emergency has temporarily closed their school or place of care |
Eligibility requirements | Meet one eligibility reason; have worked 20 weeks in the past year, earning at least $310 a week | Meet one eligibility reason; have worked 20 weeks in their base period, earning at least $310 each week, or have earned a combined total of $15,500 in their base period | Meet one eligibility reason; have worked for employer for at least one year; have over 1,250 hours of service in the past year; employer has at least 50 employees who work within a 75-mile radius | Meet one eligibility reason; work for an employer with at least 15 employees; have been employed for at least three months; have worked at least 250 hours in the past 12 months |
Job protection | No | No | Yes | Yes |
Length of leave | Up to 12 consecutive weeks in 12 months, or 56 individual days taken intermittently | Up to 26 weeks | Up to 12 weeks within a year | Up to 12 weeks within a year |
Payment | Weekly benefit payments dependent on wages, usually 85% of an employee’s average weekly wage up to a cap | Weekly benefit payments dependent on wages, usually 85% of an employee’s average weekly wage up to a cap | Unpaid | Unpaid |
Health benefits | No, employers aren’t required to provide continued health benefits to employees on leave | No, employers aren’t required to provide continued health benefits to employees on leave | Yes, employers are required to provide continued health benefits to employees on leave | Yes, employers are required to provide continued health benefits to employees on leave |
What do I have to do to comply with New Jersey’s leave laws?
If you’re required to offer NJFLA leave and FLI benefits to your New Jersey employees, here are your responsibilities:
1. Make payroll deductions and report earnings
New Jersey’s FLI program is funded through employee contributions, which you withhold from your employees’ paychecks. You’ll also withhold TDI contributions from your employees’ paychecks—and make your own contributions. In 2026, employers contribute between $44.80 and $336.00 on the first $44,800 earned by each employee during this calendar year.
Finally, you need to report your employees’ quarterly earnings to the state using forms WR-30 and NJ-927. You’ll also report the taxable portion of TDI benefits on your employees’ W-2s for the previous calendar year.
2. Educate your employees about their leave rights
It’s crucial to tell your employees they might be eligible for unpaid, job-protected leave and paid leave benefits through the state. You’re legally required to give employees written notice about the state’s leave programs at three different points: 1) When they’re hired, 2) when they ask for more information, and 3) when they request a leave.
Make sure you include a description of New Jersey FLI, TDI, NJFLA leave, and FMLA leave in your employee handbook, and explain what steps employees need to take when requesting leave.
By law, employees are required to give you 30 days of notice for bonding leave (15 days if the bonding leave is taken intermittently) and as much reasonable notice as possible for caregiving leave (for intermittent caregiving leave, 15 days of notice is required).
3. Post leave notices in the workplace
You’re legally required to post notices about FLI, NJFLA, and FMLA in a prominent, visible spot in your workplace. Download and display these posters:
Here are some additional printable guides you can give employees, in both English and Spanish.
4. Review employee claims for FLI and TDI benefits
When your employee files a claim to receive disability or family leave benefits from the state, the New Jersey DOL will send you a Notice of Eligible Determinations detailing your employee’s benefits.
You’re not required to fill anything out—you just need to check the forms to make sure your employee’s information is correct. If you notice any errors or discrepancies, call (609) 292-7060.
5. Reinstate employees who took job-protected NJFLA leave
If your employee took job-protected leave under the NJFLA or FMLA, you’re responsible for maintaining their position while they’re gone—and reinstating them when they return. You either have to give them their exact same role or one comparable in title, work duties, work schedule, pay, and benefits.
6. Keep all leave-related records
Make sure you hold onto all payroll and personnel records related to leave for at least three years. Think: payroll receipts, paystubs, official employee requests for leave, documentation of leave start and end dates, and copies of Notices of Eligible Determinations.
What happens if I don’t comply with New Jersey leave laws?
If you don’t grant your employees the family or medical leave they’re entitled to, you could find yourself in an expensive lawsuit. You’re not allowed to stop employees from taking leave, nor can you discriminate against them for doing so.
Employees have the right to sue for unlawful denial or retaliation, and to try to recoup any wages they lost. Meanwhile, you might receive fines and penalties from the state for violating leave requirements.
What will paid family leave cost me?
Because New Jersey employee contributions fund 100% of the state’s FLI program, you don’t technically have to spend any money on paid family leave. However, you can top up your employees’ weekly FLI benefits to 100% if you want to. If the state pays around 85% of their weekly wages, you’d pay the additional 15% so employees receive their full regular pay while out on leave.
Topping up isn’t necessary, but it’s an effective, fairly affordable way to show employees how much you value their contributions at work and their well-being outside of it. Bridging your employees’ wage gap during leave is also a long-term investment in the happiness of your workforce, which ultimately translates to stronger employee retention rates.
And remember: FLI doesn’t cost you anything, but TDI does. You’ll pay between $44.80 and $336.00 on the first $44,800 earned by each employee during 2026.
Do I need to change my existing employee leave policy?
The short answer: yes. Because New Jersey recently tweaked their eligibility requirements for state leave, it’s important to update your company’s written leave policy to ensure it’s aligned with the latest laws. Include the following information:
Explain that employees are guaranteed up to 12 weeks of unpaid, job-protected leave under the NJFLA and FMLA laws, and include eligibility information for each of those
Include eligibility information for New Jersey’s FLI program
Explain whether or not you provide payment top-ups during leave
Explain whether or not you require employees to use vacation or PTO during unpaid leave
Explain what employees need to do to request a leave
Explain your procedures for communication during leave
Describe your rules for extenuating circumstances (like extended leaves)
Need help getting started? Copy Gusto’s leave policy template.
Paid leave benefits everyone
New Jersey’s paid family leave financially supports employees during the most vulnerable periods of their lives, without costing you anything. That’s a real win-win.
If you need more state-specific resources, check out our New Jersey guides on:
