New Jersey Issues Guidance on Expanded Job Protections for Employees Receiving TDI and FLI Benefits, by Christopher Nucifora, Esq., 8-6-2026

The New Jersey Department of Labor and Workforce Development (NJDOL) has issued two sets of Frequently Asked Questions (FAQs) providing additional guidance on the significant expansion of job-protected leave that took effect on July 17, 2026. The FAQs clarify how the recent statutory amendments apply in practice and confirm that employees who receive Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits during a period of unpaid leave that is not otherwise covered by the New Jersey Family Leave Act (NJFLA) or the federal Family and Medical Leave Act (FMLA) are entitled to job protection.

A New, Independent Source of Job Protection
As we previously reported in a client alert, amendments that took effect on July 17, 2026, created a separate right to job-protected leave for employees who receive TDI or FLI benefits during a period of unpaid leave that is not otherwise covered by the NJFLA or FMLA. The newly issued FAQs provide additional guidance on how these expanded protections apply in practice.

The FAQs emphasize that this protection is independent of the NJFLA and FMLA. Employees who receive TDI or FLI benefits may be entitled to reinstatement rights even when they are not eligible for leave under either statute.

Duration of Job Protection
The FAQs explain that the duration of job protection corresponds to the period during which an employee is receiving TDI or FLI benefits, subject to the applicable statutory benefit limits. Under those limits:

• Up to 26 weeks in a 12-month period for employees receiving Temporary Disability Insurance (TDI) benefits.
• Up to 12 weeks in a 12-month period for employees receiving Family Leave Insurance (FLI) benefits when leave is taken continuously.
• Up to 56 individual days (eight weeks) in a 12-month period when FLI benefits are taken intermittently or on a noncontinuous basis.

Key Clarifications for Employers
Among the most significant points addressed in the FAQs are:

• No employer-size or tenure requirements (unlike NJFLA/FMLA). Unlike the NJFLA and FMLA, eligibility for these new job protections does not depend on employer size or an employee’s length of service. Instead, eligibility is tied to whether the employee is eligible to receive TDI or FLI benefits, which is based on recent earnings.
• Private plans are included. Employees receiving TDI or FLI benefits through an approved private insurance plan are entitled to the same job protections as employees receiving benefits through the State plan.
• Protection applies while benefit eligibility is pending. The FAQs state that while an employee’s TDI or FLI application is pending, the employer should treat the employee as entitled to job protection unless and until benefits are denied.
• Employees may qualify even after exhausting NJFLA or FMLA leave. An employee who has exhausted available job-protected leave under the NJFLA or FMLA may nevertheless receive job protection under the TDI/FLI amendments if the employee is receiving TDI or FLI benefits during a period of unpaid leave that is not otherwise covered by those statutes.
• The protections may apply to newer employees and small employers. The FAQs confirm that employees who qualify for TDI or FLI benefits based on earnings from a previous employer may receive job protection in a new position, and employees of employers with fewer than 15 employees are likewise covered if they qualify for TDI or FLI benefits.
• The protections may apply to ongoing leave that began before July 17, 2026. The FAQs confirm that the new job protection applies even if an employee’s leave commenced before July 17, 2026, provided the employee is receiving TDI or FLI benefits on or after that date. As a result, employers should review ongoing leaves that span the effective date to determine whether the new reinstatement protections apply.

Enforcement
The FAQs also explain that employees whose job protection arises solely under the new TDI/FLI provisions—not the NJFLA or FMLA—may file a complaint with the NJDOL or bring an action in Superior Court if their reinstatement rights are violated.

Employer Takeaways
The FAQs underscore that employers should no longer assume that reinstatement rights exist only when an employee qualifies for leave under the NJFLA or FMLA. Employers should also determine whether an employee receiving TDI or FLI benefits is entitled to job protection and reinstatement rights under the new TDI/FLI provisions.

Accordingly, employers should consider reviewing and updating leave policies, training human resources personnel and managers on the new requirements and ensuring that leave requests are evaluated under all potentially applicable leave laws before making employment decisions.

Because these expanded protections apply broadly—including to many employees who previously lacked statutory job protection—employers should carefully assess their leave administration practices to ensure compliance with New Jersey’s evolving leave laws.

Author:
Christopher Nucifora
Co-Managing Partner of KD’s New Jersey Office and Chair of the Commercial Litigation Practice Group