Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events
As tends to happen at the end of a Governor’s term in office, a bevy of bills were signed into law this month by outgoing Governor Phil Murphy. Among them were two that have the potential to change the landscape of employment law in New Jersey.
Amendments to the NJ Family Leave Act
On January 17, 2026, a bill was signed into law amending New Jersey Family Leave Act (NJFLA) that will greatly increase the number of employees entitled to its protections. The amendments, which take effect July 17, 2026, broaden the scope of employers subject to the statute and lower the eligibility thresholds for employees.
Under the NJFLA, eligible employees are entitled to job-protected leave to care for family members with serious health conditions, or to bond with a new child. Employers are required to reinstate employees who take NJFLA to their same or an equivalent position upon their return.
What is Changing?
The new law will lower the employer size threshold required for NJFLA coverage. Previously, the NJFLA applied only to employers with 30 or more employees. When effective, the law extends coverage to employers with 15 or more total employees. As a result, many small and mid-sized employers that were historically exempt from NJFLA obligations will soon be required to provide their employees with job-protected family leave.
The law also lowers the amount of time an employee must work before qualifying for NJFLA from 12 months of employment and 1,000 hours worked in the preceding 12 months to 3 months of employment and 250 hours worked. This change expands eligibility to newer hires and part-time employees who were previously excluded from NJFLA protections.
Employer Takeaways
These amendments represent a significant expansion of New Jersey’s family leave protections. New Jersey employers should become familiar with the new NJFLA requirements and begin taking steps now to prepare for operational and compliance impacts.
Lindabury’s Employment Law attorneys are assisting employers in updating employee handbooks, leave policies, and internal procedures to reflect these upcoming eligibility standards. Contact us to review and update your handbook and policies now so your documents and practices match these new requirements.
Expansion of the NJ Prevailing Wage Act
On January 20, 2026, Governor Phil Murphy signed a bill requiring the payment of prevailing wages on the construction, reconstruction, demolition, alteration, custom fabrication, or repair of data center facilities designed to have annual electrical usage of five megawatts or greater.
What is Changing?
The measure clarifies the application of the New Jersey Prevailing Wage Act to data center projects, replacing the prior, fact-specific analysis that often turned on the extent of public assistance, including tax subsidies and other incentives.
For covered data center projects, the statute imposes prevailing wage and related labor compliance obligations on contractors and subcontractors performing the work. In addition to paying prevailing wage rates, covered entities must comply with contractor registration requirements, submit certified payroll records, and maintain required insurance and bonding. The statute also imposes joint and several liability for unpaid wages and benefits owed by subcontractors, expands safety and training requirements, restricts the use of temporary labor unless workers are enrolled in registered apprenticeship programs, and requires disclosure of certain OSHA records.
The statute provides that it takes effect April 1, 2026 and applies only to data center construction projects that commence on or after that effective date.
Employer Takeaways
Owners, developers, contractors, and subcontractors involved in data center construction in New Jersey should review upcoming projects to determine whether the statute applies and ensure that labor costs, contract terms, and compliance practices reflect the statute’s requirements. Attorneys in our Labor and Employment Group are available to assist with coverage analysis and compliance planning.