New Jersey: Changes to employee separation reporting and family leave

At a glance

• Employers must now report all employee separations via the Employer Access Portal within seven days, regardless of whether unemployment benefits are claimed.
• Employers must continue issuing BC‑10 forms to departing employees, with penalties possible for non‑compliance.
• Amendments to the New Jersey Family Leave Act (NJFLA) expand employer coverage and reduce employee eligibility thresholds from July 2026 onward.
• New protections require reinstatement to an equivalent role following temporary disability benefits (TDI) or family temporary disability leave benefits (FLI) leave and allow employees to choose the order in which leave types are used.
• Employers should update policies, ensure portal registration and prepare for phased‑in coverage expansions.

Employers must report employee separations

On July 31, 2023, amendments to the New Jersey Unemployment Compensation Law took effect, increasing unemployment reporting obligations for employers. The New Jersey Department of Labor (NJDOL), however, did not publish the online form and instructions, and indicated that it would take an equitable approach to enforcement until it did so. 

On December 17, 2025, the NJDOL announced that, as of December 8, 2025, within seven days of separation, employers must report all employee separations using the Employer Response portal. This includes all forms of job separation (eg, termination, resignation, retirement), regardless of whether the employee files for unemployment benefits. 

While guidance remains limited, an FAQ from the Division of Employer Accounts provides that employers must provide the former employee with a BC-10 titled 'Instructions for Claiming Unemployment Benefits' but do not need to provide a copy to NJ Unemployment. Employers who fail to comply may face penalties and fines. 

Employers are encouraged to:

• Confirm registration of an Employer Access Portal account. If not yet registered, the authorization code to do so was included in the annual assessment bill mailed mid-August. Note, every employer must register with a valid email address.
• Report separation information via the Employer Access Portal within seven days of an employee's separation.
• Continue to provide the BC-10 form to separated employees.
• Monitor for additional guidance.

Expanded family leave requirements

Effective July 17, 2026, amendments to the New Jersey Family Leave Act (NJFLA) significantly broaden employer coverage, lower employee eligibility requirements, and extend leave to additional employees. 

Currently, requirements apply to employers with 30 or more employees worldwide. Amendments expand employer coverage using a phased in approach:

• Effective July 17, 2026: Covers employers with 15+ employees in the preceding calendar year.
• Effective July 17, 2027: Covers employers with 10+ employees in the preceding calendar year.
• Effective July 17, 2028: Covers employers with 5+ employees in the preceding calendar year.

Employees are now eligible if they are employed for at least three months and have worked at least 250 hours (previously 12 months and 1,000 hours).

Amendments also strengthen job protections for employees utilizing TDI or FLI by: 

• Requiring employees to be restored to their position or a position with equivalent seniority, pay, and benefits upon their return; and
• Allowing employees eligible for both earned sick leave, and either TDI or FLI, to use the leaves in the order of their choosing.

Employers are encouraged to revise leave policies and procedures to account for new requirements and to train managers and supervisors on new requirements.