Gov. Phil Murphy signed a bill over the weekend that will expand family leave benefits to workers at smaller companies, just days before he leaves office after two terms.
Murphy, a Democrat, called the legislation “historic.” It allows workers at firms with as few as 15 employees to take job-protected paid family leave, down from 30 workers in the state’s prior family leave law.
“By amending the eligibility requirements for job-protected leave, we are ensuring newer employees and employees of small businesses are not excluded from the protections of the New Jersey Family Leave Act. Now, employees will not have to work as long before being able to utilize their leave with the assurance that they can return to their job once the leave concludes,” he said.
Murphy leaves office at noon on Tuesday when his successor, Gov.-elect Mikie Sherrill (D), becomes governor.
As new legislative session begins, some major bills go back to starting line
Existing New Jersey law permits workers to take up to 12 weeks of paid family leave to bond with new children or care for a sick or injured loved one. Workers on family leave can earn up to 85% of their weekly pay, to a cap of $1,119 in 2026.
To be eligible under current law, an employee must have worked at a given employer for at least 12 months and have worked at least 1,000 hours in the preceding 12 months. The bill Murphy signed cuts those qualifications in half, requiring workers to be with their employer for at least six months and slashing the hours requirement to 500.
Bill sponsor Assembly Speaker Craig Coughlin (D-Middlesex) called the legislation “good for the workforce, good for babies and families, and good for our state as a whole.”
“By reducing the amount of time someone has to be on the job before becoming eligible for family leave, this legislation recognizes the realities of today’s workforce and makes sure more parents can care for and bond with their newborn without fearing they’ll lose their job. No one should be penalized for needing time to care, and this bill helps make sure the vast majority of workers never will,” he said.
Existing law bars employers from retaliating against workers for using family leave benefits. The legislation Murphy signed says workers are entitled to be restored to their previous position or one with equivalent pay, benefits, and seniority upon returning from family leave. It also explicitly allows workers to use family leave, temporary disability benefits, and earned sick leave in the order of their choosing.
Business groups had opposed the bill, warning that expanding family leave eligibility could make New Jersey small businesses less competitive.
GET THE MORNING HEADLINES.
