With a robust Temporary Disability Insurance (TDI) plan, New Jersey is known to support injured or ill workers with generous statutory benefits. But New Jersey workers also receive salary replacement to care for loved ones. In addition to TDB in New Jersey, the state provides Family Leave Insurance (FLI) under the New Jersey Family Leave Act.
What Is New Jersey Family Leave Insurance?
New Jersey businesses must provide Family Leave Insurance to employees who have worked at least 20 weeks and met income requirements. The eligibility requirements for 2025 are at least $303 per week (or $15,200 in the past four quarters) prior to taking leave. FLI covers leave to:
- Care for a family member’s physical or mental health condition
- Bond with a newborn, newly adopted, or newly placed foster child within the first 12 months
- Tend to matters related to domestic or sexual violence
FLI Premium Rates and Benefits in 2025
The state of New Jersey set the FLI benefit at the same rate as TDB. Employees can claim up to 12 consecutive weeks of paid time off at a rate of 85% of their average weekly wage, up to a maximum rate of $1,081. Employees may also split up FLI days, taking up to 56 individual days across a 12-month period.
Splitting up the days reduces the total coverage to eight weeks over 12 months, rather than 12 weeks. However, this flexibility can help families manage situations like caring for a loved one with a chronic condition that requires frequent doctor’s appointments.
Family Leave Insurance in New Jersey is funded by employees with pre-tax dollars through payroll deductions. The premium rate is 0.33%.
Privatizing FLI
As with TDB coverage, employers can write their company’s FLI policy through the Division of Temporary Disability and Family Leave Insurance, part of the New Jersey Department of Labor and Workforce Development.
But they can also write policies through a private carrier offering benefits of an amount and duration equal to or greater than the state plan.
Here’s something insurance brokers need to know: Only a small number of carriers write privatize FLI. Although the benefit has been in effect as a rider to TDB since 2008, only in 2023 did top-rated carriers begin writing private FLI policies.
Advantages to Privatizing NJ Family Leave Insurance
Business owners who opt to privatize NJ FLI will see several advantages. First, they will enjoy superior service through a private carrier, including faster claims support. Private policies may eliminate the 7-day waiting period before benefits kick in.
Holders of private plans may choose to eliminate the eligibility requirement, offering NJ FLI to all employees, regardless of their average weekly wage or how long they’ve been working for the company.
Employers who write NJ FLI through a private plan may also opt to cover the premium costs for their employees.
Benefits to Brokers
Helping your clients privatize Family Leave Insurance opens an additional revenue stream for brokers licensed in New Jersey. Not only can private carriers provide better service and claims support, but a private plan may waive eligibility requirements, turning this mandatory benefit into a helpful recruiting tool in highly competitive markets.
When you build trust with your clients by helping them privatize FLI, you can roll that savings into other benefits, such as dental, vision, life insurance, and voluntary worksite benefits.
Consider FLI a foot in the door to examine your clients’ total benefits package and find and fill risk gaps.
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