On January 17, then-Governor Phil Murphy signed Assembly Bill No. 3451 into law as one of his final acts in office, amending the unpaid New Jersey Family Leave Act and the paid Temporary Disability (TDI) and Family Leave Insurance (FLI) programs to expand the protections of these leave programs. The changes take effect on July 17. Here are the key changes to these programs:
New Jersey Family Leave Act (FLA)
Applicability. The law was amended to require employers with 15 or more employees to provide this leave entitlement. Since June 30, 2019, this law has covered employers with 30 or more employees. Two additional employer coverage provisions (one that would have extended coverage to employers with 10 or more employees after one year, and another that would have applied to employers with five or more employees after two years) were removed and are not included in the final law.
Eligibility. The law was amended to reduce the minimum length of employment from 12 months to three months and the minimum hours worked from 1,000 to 250 for an employee to be eligible for NJ FLA.
Temporary Disability and Family Leave Insurance (TDI/FLI)
Job protection. Employees who take temporary disability or family leave benefits are now entitled to return to their job when their leave ends, or to a comparable role with the same seniority, pay, benefits, and working conditions. Previously, with the exception of paid leave for organ or bone marrow donation, job protection rights came from separate statutes, such as NJ FLA or federal Family and Medical Leave Act. TDI and FLI were strictly wage replacement benefits, and if an employee did not qualify for job protection under those other statutes, employers had no obligation to reinstate them.
Enforcement. Employees may seek relief from the Division on Civil Rights in the Department of Law and Public Safety and Superior Courts for violations of the TDI/FLI law.
Order of operations. If an employee qualifies for both earned sick leave and paid temporary disability or family leave benefits, they can choose which type of leave to use and in what order. However, they cannot receive more than one type of paid leave at the same time.
Impact on posting and notice requirements. Although not specified in the signed law, the expansion of these leave programs will likely require employers to revise their existing posters and notices to ensure employees receive accurate information. Employers should monitor forthcoming updates from the New Jersey Division on Civil Rights (for NJ FLA) and the Department of Labor and Workforce Development (for TDI/FLI).
FINEOS can help with your state leave programs
Using modern insurance technology solutions like the FINEOS Platform can help insurance carriers and employers remain compliant when leave legislation is revised and new leave programs are enacted by governing jurisdictions. Learn more about how a modern, integrated disability and absence management (IDAM) solution can help your organization adapt to this rapidly evolving market and remain in compliance.