By: Jamie Davila, Esq.

Date: August 4, 2026

New Jersey employers should closely review their leave-management practices in light of recent guidance from the New Jersey Department of Labor and Workforce Development (NJDOL). The NJDOL has taken the position that employees receiving Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits may be entitled to reinstatement even when they do not independently qualify for protected leave under the federal Family and Medical Leave Act (FMLA) or the New Jersey Family Leave Act (NJFLA)[1].

What Does This Mean?

If the NJDOL’s interpretation withstands legal scrutiny, the guidance may constitute one of the most consequential expansions of employee leave-related reinstatement rights in New Jersey in recent years[2].

Historically, TDI and FLI are viewed primarily as wage replacement programs. Employees could receive partial income while absent from work, but the receipt of those benefits did not automatically guarantee job protection. Instead, job restoration rights typically depend on eligibility under laws such as the FMLA or NJFLA[3].

According to recently published NJDOL guidance, employees who receive TDI or FLI benefits are entitled to reinstatement at the conclusion of their leave, regardless of whether they qualify for leave protection under the FMLA or NJFLA. The agency has further stated that these protections apply without regard to employer size or employee tenure[4].

The Legislative Change Behind the Guidance 

The NJDOL’s position stems from amendments enacted through P.L. 2025, Chapter 279 (Assembly Bill 3451), signed into law on January 17, 2026, with key provisions taking effect on July 17, 2026[5]. Among other changes, the legislation amended the NJFLA to cover employers with 15 or more employees and reduced employee eligibility requirements to three months of employment and 250 hours worked[6].

The provision drawing the greatest attention is a separate section providing that individuals who receive TDI or FLI benefits are entitled to be restored to their positions, or to comparable positions, when leave concludes. The NJDOL has interpreted that language as creating a stand-alone reinstatement right independent of the NJFLA and FMLA, although the scope and enforceability of that interpretation remain open to challenge[7].

Key Takeaways from the NJDOL Guidance 

1. TDI and FLI Benefits May Now Trigger Independent Job Protection 

The agency’s guidance states that reinstatement rights arising from TDI or FLI benefits exist separately from protections afforded under the NJFLA and FMLA[8]. In simple terms, an employee may have job protection even when they do not qualify for leave under either NJFLA and FMLA.

2. No Employer Size Requirement 

One of the most consequential aspects of the guidance is the NJDOL’s assertion that these reinstatement rights are not subject to a minimum employer-size threshold[9]. If applied as written, the agency’s position could require even very small employers to restore employees returning from TDI or FLI leave.

3. No Length-of-Service Requirement 

The guidance also indicates that employees do not need a minimum period of employment to qualify. Instead, eligibility is tied to meeting the earnings requirements for TDI or FLI benefits.

4. Protection Applies to an Employee’s Own Medical Condition 

Unlike the NJFLA, which generally covers leave to care for family members or bond with a new child, TDI benefits apply to an employee’s own disabling medical condition. NJDOL’s interpretation therefore creates potential job protection for up to 26 weeks of disability-related leave[10].

5. Presumption of Protection During Benefit Determinations 

The guidance further suggests that employers should presume job protection exists while a TDI or FLI application is pending, at least until a determination is made regarding the employee’s eligibility.

Potential Impact on Employers 

Under the NJDOL’s interpretation, an employee could receive up to 26 weeks of TDI benefits for the employee’s own medical condition and, in some circumstances, up to 12 additional weeks of FLI benefits to care for a family member.[11] That combination could create as much as 38 weeks of job-protected absence in a single year, even where the employee would not otherwise qualify for leave under the FMLA or NJFLA.[12]

Legal Uncertainty Remains 

The legislation also provides that the amendments should not be construed as increasing, reducing, or otherwise modifying rights under the NJFLA. However, until courts, regulations, or further agency guidance clarify the issue, employers should consider following the guidance, while carefully documenting leave and reinstatement decisions. [13]

What Employers Should Do Now 

New Jersey employers should take a risk-based approach to compliance:

• Review leave, disability, attendance, and reinstatement policies for consistency with the NJDOL guidance.
• Update handbook language to address TDI and FLI benefits separately from FMLA and NJFLA eligibility.
• Train HR personnel and managers to escalate decisions involving employees receiving, applying for, or returning from TDI or FLI benefits.
• Document the business and legal basis for any decision to deny reinstatement or fill a position during a covered absence.
• Monitor future NJDOL guidance, regulations, and court decisions before treating the issue as settled law[14].

In the meantime, employers should proceed cautiously, audit existing leave practices, and seek legal guidance before taking adverse action against employees whose TDI or FLI benefits may implicate reinstatement rights.

If you have any questions regarding your rights as an employee, you should seek an experienced attorney who concentrates on employment law. Our firm has been concentrating on employment law for over twenty-three (23) years!

En nuestra firma hablamos español. This blog is for informational purposes only. It does not constitute legal advice and may not reasonably be relied upon as such. If you face a legal issue, you should consult a qualified attorney for independent legal advice regarding your particular set of facts. This blog may constitute attorney advertising. This blog is not intended to communicate with anyone in a state or other jurisdiction where such a blog may fail to comply with all laws and ethical rules of that state or jurisdiction.

[1] NJDOL Issues New Guidance Claiming Employees Who Receive TDI and FLI Benefits Are Entitled to Job Protection Even When Not Eligible for FMLA or NJFMLA Leave, Lauren Hollender and Julie Levinson Werner, JDSUPRA, July 31, 2026, https://www.jdsupra.com/legalnews/njdol-issues-new-guidance-claiming-7631856/ (Last Visited on August 3, 2026).

[2] Id.

[3] Id.

[4] NJ Expands Job-Protected Leave for Workers, Department of Labor & Workforce Development, July 17, 2026, https://www.nj.gov/labor/myleavebenefits/worker/job-protection-information/more-protections.shtml (Last Visited on August 3, 2026).

[5] Id. At 1.

[6] Id. At 4.

[7] Id. At 1.

[8] Id. At 4.

[9] Id.

[10] Id. At 1.

[11] Id.

[12] Id.

[13] Id.

[14] Id. At 1.