By Michael Phillips | NYBayNews
TRENTON, N.J. — A sweeping change to New Jersey’s family leave law is now one signature away from becoming reality, after state lawmakers approved legislation that would significantly expand job-protected family leave to workers at smaller businesses across the Garden State.
The bill, known as S3451, passed the New Jersey Senate on December 22 and is now awaiting action by Phil Murphy, who has historically supported broad expansions of paid family leave. If signed, the measure would lower the threshold for job-protected leave from employers with 30 or more employees to those with as few as 15 — a shift supporters call overdue, but critics warn could strain small businesses already under pressure.
What the Bill Would Change
Under current law, New Jersey workers can receive paid family leave benefits — funded entirely through employee payroll deductions — regardless of employer size. However, job protection under the New Jersey Family Leave Act (NJFLA) only applies to employers with 30 or more employees.
The new bill would:
- Extend job-protected leave to employees at businesses with 15 or more workers
- Allow up to 12 weeks of unpaid, job-protected leave for caregiving or bonding
- Reduce eligibility requirements from 12 months/1,000 hours to 6 months/500 hours
Supporters argue the change closes a long-standing gap where workers receive state-paid benefits but risk losing their jobs if they work for smaller employers.
Small Business Backlash
Business groups have pushed back hard, warning that the mandate could have serious unintended consequences.
The New Jersey Business & Industry Association argues that small employers lack the staffing flexibility and financial cushion to absorb long absences while guaranteeing reinstatement.
“These are not Fortune 500 companies,” business advocates note. “For a 15-person operation, losing even one employee for three months can disrupt operations, delay contracts, or force layoffs elsewhere.”
Critics also warn that New Jersey risks becoming an outlier. The federal Family and Medical Leave Act applies only to employers with 50 or more employees, and most states follow similar thresholds. Lowering the bar to 15 employees places New Jersey among the most aggressive states in the country when it comes to mandated job protection.
Supporters Say Workers Already Pay
Labor groups and progressive advocates counter that the benefits are already funded by workers themselves. Groups like New Jersey Citizen Action argue that job protection should accompany paid leave, not depend on employer size.
“Employees already contribute every paycheck,” supporters say. “They shouldn’t be forced to choose between caring for a loved one and keeping their job.”
The bill was originally more expansive, aiming to lower coverage to employers with just five employees, but was amended to 15 following business opposition — a compromise lawmakers say balances worker protections with economic realities.
How New Jersey Compares to New York
The debate mirrors similar policies across the Hudson River. New York already requires paid, job-protected family leave for nearly all private employers, including those with just one employee. New Jersey’s system remains more segmented, separating paid benefits from job protection — though this bill would narrow that gap.
Still, even with the change, New Jersey would stop short of New York’s near-universal coverage.
What Happens Next
Governor Murphy has not yet commented publicly on the bill, but given his record — including major expansions to family leave in 2019 and during the COVID era — a signature is widely expected. If enacted, the law would likely take effect sometime in 2026.
For concerned citizens and small business owners, the decision underscores a familiar tension in state policymaking: how to balance family needs and workplace flexibility without tipping the scales too far against local employers who form the backbone of New Jersey’s economy.
As the bill sits on the governor’s desk, the question is no longer whether family leave matters — but how far state government should go in mandating it.
New York Bay News 
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