New Jersey’s paid family leave program is likely to expand to small businesses with 15 or more employees.
The New Jersey State Senate Budget Committee approved a bill expanding paid family leave on the 15th with a vote of 8 to 5, sending it to the plenary session.
Current state law requires businesses with 30 or more employees to guarantee the employment of employees who use paid family leave. The amendment, which passed a subcommittee on the same day, expands the obligation to guarantee employment underpaid family leave to businesses with 15 or more employees.
When the bill was introduced in February, it significantly expanded the scope of paid family leave to businesses with 5 or more employees, but later, through discussion, the scope was adjusted to cover businesses with 15 or more employees.
Paid family sick leave has been guaranteed in New Jersey since 2009. As of 2025, employees who earned at least $303 per week for 20 weeks or a total of $15,200 over the 12 months prior to the application date are eligible for up to 12 weeks of paid family sick leave. Recipients can receive 85% of their wages (up to $1,055 per week).
However, only businesses with 30 or more employees are required to guarantee employment for employees who use paid family sick leave, leading to ongoing criticism that employees at smaller businesses are reluctant to use the leave due to fear of losing their jobs. Supporters of the bill argue that “currently, 1.7 million workers in New Jersey are not eligible for paid family sick leave,” and that this needs improvement.
Opponents, including business groups, argue that expanding paid family sick leave to businesses with fewer than 30 employees will significantly impact small businesses.