New Jersey Family Leave Insurance Program: What Businesses Should Know

New Jersey Family Leave Insurance (NJ FLI) provides partial wage replacement to eligible employees in the state who take leave for a qualified reason. An eligible employee is an individual who works for a covered employer and contributes to the state’s FLI plan and meets the applicable earnings requirements.

NJ FLI provides cash benefits but is not a job-protected leave. Other leaves offered by New Jersey and taken concurrently might provide unpaid job protection, as does the federal Family and Medical Leave Act (FMLA). Employers should inform employees of the types of leave available to them and follow applicable notice requirements.

Is NJ Temporary Disability Insurance Different Than NJ Family Leave Insurance?

There is a difference between the two programs in New Jersey that provide paid benefits to qualified workers. NJ Temporary Disability Insurance (TDI) offers up to 26 weeks of partial wage replacement and no job protection for eligible employees who cannot work because of injury, disability, or an illness that isn’t related to work, which include but are not limited to pregnancy and complications stemming from childbirth.

NJ Family Leave Insurance provides paid time off and no job protection, but this leave is for an individual providing care for a family member with a serious health condition or other qualifying reasons. Additional information on NJ FLI is below.

How Is NJ Family Leave Insurance Funded?

Workers fund 100 percent of the New Jersey FLI program through payroll deductions. In 2025, the employee contribution percentage increases to 0.33% on the wage cap of $165,400. The taxable wage cap changes annually. Employers do not contribute to the FLI plan.

Who Is a Covered Employer Under NJ FLI?

A covered employer under the NJ Family Leave Insurance program is any business or organization with 30 or more employees worldwide, as well as state and local government agencies with at least one employee.

What Are Employee Eligibility Requirements Under NJ FLI?

In 2025, an eligible employee must work 20 weeks (1,000 hours) to qualify for New Jersey FLI and earn a total of $15,200 during the previous 12 months.

Individuals who work in New Jersey and meet all other requirements might be eligible to receive benefits, regardless of where they live.

What Are Qualifying Reasons To Receive NJ Family Leave Benefits?

Family Leave Insurance in New Jersey is available to eligible workers for the following reasons:

• Providing care for a family member with a serious health condition (physical or mental)*
• Bonding in the first 12 months after the birth, placement through foster care, or adoption of a child**
• Tending to family safety matters related to domestic or sexual violence
• Handling matters related to deployment of a spouse, child, or parent on active military duty

The health condition must be certified by a health care provider and the provider must determine that the patient requires care.

*A family member is defined as a parent, spouse, children, parents-in-law, siblings, grandparents, grandchildren, domestic partners, others related by blood, and also includes any other individuals considered family by the employee.

**In cases of bonding with a newborn, the individual taking leave under NJ FLI must be the baby’s biological parent or the biological parent’s domestic partner or civil union partner.

What Benefits Are Available Under NJ FLI?

A eligible worker taking leave through the New Jersey Family Leave Insurance program can claim up to 12 weeks of continuous leave, or up to 8 weeks (56 individual days) if the leave is taken intermittently, during a 12-month period.

Claimants receive 85% of their average weekly wage (AWW) up to the maximum weekly benefit rate. In 2024, the maximum weekly benefit rate is $1,055. In 2025, the maximum weekly benefit rate will be $1,081.

Are There Employer Reporting or Notification Requirements for NJ FLI?

For the New Jersey Family Leave Insurance program, covered employers must report quarterly employee earnings to the state so eligibility and weekly benefit amounts can be determined. In addition to reporting to the state, employers have the following notification requirements:

• Provide employees written notice of the Family Leave Insurance program upon hire, when information is requested by the employee, and when an employee notifies an employer of their need for leave
• Place posters about FLI in a visible workplace location (e.g., a break room or common area)
• Closely monitor all benefits issued to employees and notify the NJ FLI Division immediately if benefits are being issued incorrectly

There could be penalties and fines for noncompliance with these requirements.

Is There a Private Plan Exemption to New Jersey FLI?

Employers can opt out of the New Jersey Family Leave Insurance program and elect to offer a private plan. To do so, an employer must contact the NJ Department of Labor and Workforce Development and choose a private plan approved by the department.

Upon approval to opt out, a private plan can be obtained through an insurance carrier or self-insurance, and the plan must offer rights and benefits equal to or greater than those provided by the NJ FLI program.

If an employer provides Family Leave Insurance through an approved private plan, the employer must provide information about coverage and forms to the employees so they may apply for benefits.

Looking Forward

Businesses seeking to enhance their recruitment and retention efforts while looking to help maintain the well-being of employees could use a mix of benefits in addition to those provided by a paid leave program. Paychex also provides HR Services to help employers work through the HR complexities of running a business.

Additional Resources

NJ FLI website

NJ FLI FAQ