New Jersey Labor Department Clarifies Employers' Job Protection Obligations

The New Jersey Department of Labor (NJDOL) clarified that based on amendments effective as of 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 (FMLA) 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.” 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.

Sample Policy: Short-Term Disability Benefits Policy

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.

James M. McDonnell is an attorney with Jackson Lewis in Berkeley Heights, N.J. Justin B. Cutlip is of counsel with Jackson Lewis in Berkeley Heights, N.J. © 2026. Jackson Lewis. All rights reserved. Reposted with permission.