If you employ people in the Garden State, the pace of change this year has been relentless. Below is a plain-English guide to the biggest New Jersey employment law changes 2026 employers need on their radar — what shifted, when it takes effect, and the one action each update calls for. Three of these carry hard deadlines between now and October, so it’s worth a quick read.
1. The IRS raised the standard mileage rate mid-year
Citing higher fuel prices, the IRS increased the business standard mileage rate to 76 cents per mile for July 1 through December 31, 2026 — up from 72.5 cents. It’s the first mid-year adjustment since 2022. The rate for medical and qualified moving mileage also rose to 23.5 cents, while the charitable rate stays at 14 cents.
What to do: Split your mileage logs at June 30, update your reimbursement and expense-report rates, and confirm any tracking app applies 76 cents for the second half of the year. See the IRS newsroom for the official announcement.
2. The NJ Family Leave Act now reaches far smaller employers
Effective July 17, 2026, the New Jersey Family Leave Act (NJFLA) coverage threshold drops from 30 employees to 15 — counted worldwide — and phases down further to 10 in 2027 and 5 in 2028. Eligibility loosens too: employees now qualify after just three months and 250 hours, rather than 12 months and 1,000 hours. The amendments also add reinstatement protections tied to TDI and FLI leave and let employees choose the order in which they use their leave benefits.
What to do: Check whether you’re newly covered, then update your handbook, leave request forms, and eligibility tracking before July 17.
3. New Jersey tightened the rules on AI in hiring and management
Under the New Jersey Law Against Discrimination, state regulations now treat automated decision tools that create a disparate impact the same as traditional discrimination. Importantly, employers remain liable even when the tool belongs to a third-party vendor, and they are expected to take reasonable steps to vet that vendor’s product.
What to do: Inventory where AI touches recruiting, screening, or evaluations. Audit those tools for bias, adopt a written AI-use policy, and document your vendor vetting.
4. Every employee separation must now be reported online
As of December 8, 2025, New Jersey employers of any size must report all separations — terminations, resignations, layoffs, and retirements — electronically through the NJDOL Employer Access portal. This applies whether or not the worker files for unemployment. Reports are generally due within seven days, and you must still hand each departing employee a BC-10. Willful failure to report carries penalties.
What to do: Register for the Employer Access portal and add a “report the separation” step to your offboarding checklist. More in our separation reporting post.
5. Final ABC-test rules for independent contractors take effect October 1
On May 5, 2026, the NJDOL adopted final regulations (N.J.A.C. 12:11) that codify how New Jersey applies its existing ABC test across the Unemployment, Wage and Hour, and Wage Payment laws. The rules don’t create a new test; they formalize a firm substance-over-form approach. The burden stays on the employer to prove all three prongs — and a 1099, a contract label, or a paper LLC won’t settle the question. The rules become operative October 1, 2026.
What to do: Audit your contractor relationships against all three prongs before October 1, and align your agreements with how the work is actually performed. See our ABC-test breakdown.
6. Hiring minors runs through a state portal
New Jersey’s working-papers system is fully digital and employer-driven. Before a minor can start, you must register, obtain an ID code, and complete the steps in order — a role that schools used to handle. A new application is required each time a minor changes employers, duties, or seasons. A December 2025 change also exempts certain 14-and-older professional athletes from some hour limits.
What to do: Register in the NJDOL working-papers system, follow the application sequence exactly, and keep every employment certificate on file — penalties can accrue per minor, per day. Our guide to hiring minors covers the full process.
What New Jersey employers should do next
Taken together, these New Jersey employment law changes touch payroll, leave, hiring, offboarding, and technology — nearly every part of the employee lifecycle. The good news is that most of them come down to a short list of updates: revise a policy, register for a portal, or audit a practice before a deadline.
If you’re unsure which of these apply to your business, we can help you sort it out and get ahead of the dates that matter. Contact us to review your compliance checklist.
Yes. Under the New Jersey Law Against Discrimination, if an automated hiring or management tool produces a discriminatory impact, your business can be held responsible even when the software belongs to a third-party vendor. Employers are expected to take reasonable steps to vet these tools and document that review.
Yes — as of July 17, 2026, the NJFLA covers employers with 15 or more employees (counted worldwide), down from 30, and that threshold drops further to 10 in 2027 and 5 in 2028. Employees also become eligible sooner, after just three months and 250 hours worked. If you’re at or above 15 employees, you should review your handbook and leave policies now.
The IRS raised the business standard mileage rate to 76 cents per mile for July 1 through December 31, 2026, up from 72.5 cents earlier in the year. The medical and qualified moving rate is 23.5 cents, and the charitable rate remains 14 cents. Because the rate changed mid-year, employers should split their mileage records at June 30.