Proposed New Jersey Bill Would Require More Employers to Provide Paid Family Leave
On December 16th, 2025, the New Jersey Monitor reported that a group of lawmakers in Trenton have introduced a new bill that would expand the state’s paid family leave program to cover additional employers. If the bill were to become law, many more smaller companies and organizations would be required to provide paid family leave to eligible employees. In this article, our New Jersey employment attorney discusses the proposed bill in more detail.
What the Proposed Paid Family Leave Expansion Would Do (Many More Employers Covered)
A new bill advancing in the New Jersey Legislature would expand the state’s paid family leave requirements to cover more employers. Under current law, most private employers with 30 or more employees are subject to job-protected leave when an employee takes up to 12 weeks of paid family leave benefits administered through the New Jersey Family Leave Insurance program (FLI).
However, the proposed legislation would lower that threshold and bring smaller employers into the fold. Beyond that, the bill also includes stronger job-protection provisions, ensuring employees who take paid leave return to the same position they held before their leave. Supporters say the change would increase access to leave benefits for workers in smaller companies who currently lack guaranteed protections when they take time off for caregiving or bonding with a new child.
Note: As currently drafted, the proposed New Jersey bill would lower the employer size threshold for mandatory paid family leave job-protected benefits from 30 employees to as few as 5 over time. Under the phased approach, the requirement would drop initially to 20 employees, then to 10, and ultimately to 5 employees.
Why Job Protection Matters When Taking Paid Leave
Paid family leave without job protection creates a gap. An employee may receive partial wage replacement but still face the risk of losing their position while out. The proposed bill aims to close that gap for workers at small businesses. Once covered, employers would be required to hold an employee’s job or an equivalent position during approved leave. The protection applies regardless of whether the employer directly pays the leave benefits. The reason is that New Jersey’s program is funded through payroll contributions. For employees, the change would provide real security. Taking time off for caregiving would no longer depend on informal assurances or goodwill from an employer.
Who Would Benefit and What to Watch Going Forward
Workers at small companies stand to benefit the most. Retail employees, service workers, nonprofit staff, and workers in family-owned businesses often lack formal leave protections despite paying into the state system. The phased rollout means coverage would expand gradually, starting with mid-sized employers and moving down to businesses with five employees. Still, it is important to emphasize that there are many legislative steps before this bill would become law in New Jersey.
Contact Our New Jersey Paid Family Leave Attorney Today
At Poulos LoPiccolo PC, our New Jersey employment attorney has the knowledge and experience to handle family and medical leave action cases. If you have any specific questions or concerns about paid family leave in New Jersey, please do not hesitate to contact us today. From our Monmouth County office, we handle employment law cases throughout the region in New Jersey.
Source:
newjerseymonitor.com/2025/12/16/nj-paid-family-leave-small-businesses/
