Be in the Know: New Rules on Leave

Covered employers

Employers must participate in these State public insurance programs and deduct payroll taxes for employees working in NJ, or employers may choose to provide employees coverage through a private insurance plan that meets NJ requirements. The federal government is exempt. Temporary Disability Insurance is optional for local governments (for example counties, municipalities, and school districts).

Coverage options

State plan or state-approved private plan

Cost

Paid medical leave:

• $44,800 (increasing to $46,400 effective 1/1/2027).
• No Employee contribution required 

Paid family leave:

• 0.009% of taxable wages. The Taxable wage base is currently $171,100 and will be increasing to $177,100 effective 1/1/2027.
• 100% employee funded

Employer funds the additional cost of the private plan above the employee maximums. The employer can pay all or part of the employee contribution.

Employee eligibility

Worked 20 weeks earning at least $310 weekly (increasing to $319 effective 1/1/2027) or have earned a combined total of $15,500 (increasing to $16,000 effective 1/1/2027) in the base year.