New Jersey lawmakers are currently examining Bill A-3451, a proposed expansion of the state’s family leave protections that would lower the employer threshold for guaranteed job reinstatement from businesses with 30 or more employees to those with as few as five. The legislation has sparked intense debate between business leaders concerned about operational and financial strain and advocates who argue it would strengthen the workforce while providing essential protections for employees. For ongoing coverage of lifestyle and workforce issues in New Jersey, the lifestyle section on Explore New Jersey offers news, insights, and expert perspectives.
Small Business Concerns Over Expanded Protections
Opponents of the bill, including prominent groups such as the New Jersey Chamber of Commerce and the New Jersey Business & Industry Association (NJBIA), warn that extending mandatory job protection to very small businesses could create significant challenges. Many small firms operate with minimal staff, and a 12-week absence by even a single employee could disrupt operations or require costly temporary staffing solutions. The expense of hiring, training, and then potentially letting go of substitute workers places additional financial pressure on small business owners, who are already contending with inflation, labor shortages, and high operating costs.
Legal exposure is another key concern. The legislation would allow employees to pursue litigation if they are not reinstated to the exact position they held prior to taking leave. Critics argue this could saddle small “mom-and-pop” businesses with complex legal challenges and additional compliance burdens. Some business advocates also cite broader economic indicators, including New Jersey’s relatively high unemployment rate and declining Corporation Business Tax collections, as signs that small businesses may struggle to absorb new mandates at this time.
Supporters Highlight Benefits for Employees and Workforce Stability
Proponents of the bill, including labor unions and supportive small business owners, emphasize that job protection for family leave is fundamentally a matter of fairness. Currently, all New Jersey workers contribute to the state’s Family Leave Insurance (FLI) program through payroll deductions, yet employees at very small businesses often cannot utilize the program due to lack of job reinstatement guarantees. Advocates argue that expanding protections would allow employees to care for family members or manage personal health needs without risking unemployment, ultimately improving workforce retention and reducing turnover-related costs.
Evidence from other states supports the idea that such expansions need not harm small businesses. Studies in California and Rhode Island, where similar protections exist, indicate that firms with fewer than 50 employees experienced minimal adverse effects on productivity or profitability. To further ease the transition, Bill A-3451 proposes a phased implementation over two years, allowing smaller employers time to adapt operations and workforce planning.
Legislative Status and Current Contributions
As of early December 2025, the bill has passed the Assembly and awaits Senate approval. It was recently pulled from a Senate committee agenda to allow additional negotiations aimed at ensuring its passage and eventual signing by the governor. While job protection measures remain under discussion, contribution rates for New Jersey’s Family Leave Insurance program have already been set for 2025. Workers will contribute 0.33% of the first $165,800 in wages, up from 0.09% in 2023, while employers do not contribute to the program, which remains fully financed through payroll deductions.
If passed, Bill A-3451 could significantly reshape the landscape of family leave in New Jersey, ensuring that employees at the smallest firms receive the same protections currently afforded to workers at larger businesses. The debate underscores the ongoing tension between supporting workforce needs and safeguarding the viability of small businesses, highlighting a critical policy issue that will shape both New Jersey’s economy and its labor environment in the coming years.
