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Jul25

New Jersey Short-term Disability

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How is the

New Jersey state disability program funded? What are the differences between the state and private plans? What are the maximum benefit amounts?

The state-mandated New Jersey Temporary Disability Benefits, or TDB, is a short-term disability insurance program financed through payroll deductions. For 2007, New Jersey workers contribute ½ of 1% on the first $26,600 they earn during the calendar year. The maximum worker contribution is $133 for the year.

New Jersey employers may opt to offer coverage under a private short-term disability program, instead. That program may be self-funded by the employer, or it may involve employee contributions. However, if employee contributions are required, the employee’s maximum contribution for the year cannot exceed $133. These plans are supplied by the employer, by an insurance company, or by a union benefit fund.

Some provisions of private plans may be different from the state plan, however, at a minimum they must provide the same benefits and eligibility as the state plan. The state plan is a basic minimum that almost all workers are entitled to.

Employees who exhaust their benefits under a private New Jersey disability program CANNOT then collect benefits under the state TDB program, even if they are still disabled. Employees are entitled to payments under one plan or the other, but not both. An employee with a permanent disability may qualify for disability payments under Social Security, a federal program.

The maximum benefit paid under the New Jersey TDB program depends on several factors. In general, workers receive 2/3 of their average weekly salary, per week of disability. The total is limited to 1/3 of the amount that the employee earned in New Jersey during the 52 weeks prior to the disability. For example, if you earned $20,000 in

New Jersey, the maximum payout under TDB would be $6,667.

Under the New Jersey TDB program, workers can collect short term disability benefits for up to 26 weeks per year. In order to qualify, an employee must earn $143 or more in at least 20 weeks, OR must have earned $7,200 or more during the past 52 weeks.

This entry was posted on Wednesday, July 25th, 2007 at 2:59 pm and is filed under
Benefits, Compensation, Human Resources Management, Labor Laws, Workplace Management.
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7 Responses to “New Jersey Short-term Disability”

  1. Michael Tuchman Says:
    June 9th, 2008 at 10:10 pm

    Does this apply to workers who live in other states?

  2. Caitlin Says:
    June 23rd, 2008 at 9:07 am

    Michael, this does not usually apply to workers who live in other states. Only 5 states have a short term disability program: Hawaii, Rhode Island, New York, New Jersey and California. The programs are each funded differently. Employees in other states have no short term disability protection unless they purchase insurance, or their employer is especially generous.

  3. jessica Says:
    September 10th, 2008 at 3:52 pm

    I have been out of work for sickness due to pregnancy since 5/6 when I was 2 months pregnant. I am receiving short term disability payments from my company’s private insurance. On 9/1 I had an emergency c-section that resulted in the deaths of my twin baby boys. Now that I have delivered by c-section my doctor requests that I take 8 additional weeks. My company said that they will not hold my job for more than 6. My question is, does the company have to hold my position for the 26 weeks of short term? Or is it definitely under the FMLA since it is pregnancy related?

    I would really appreciate if someone got back to me.

    Thanks,
    Jessica

  4. Caitlin Says:
    September 11th, 2008 at 8:18 am

    Hi Jessica! First of all, our deepest sympathy on the loss of your babies. I know that is a really, really tough situation.

    Unfortunately, FMLA limits unpaid, job-protected leave to 12 weeks in a 12-month period. All types of FMLA leave are bundled together, in this calculation. So while the company’s private insurance will pay you for 26 weeks of disability, the company is under no obligation to permit you more than 12 weeks of leave, in most cases. Companies can and usually do count all pregnancy-related leave as FMLA.

    There is one exception here. The company can only count a short term disability as FMLA leave if the employee was informed at the beginning of the leave, in writing, that it was FMLA. That is probably the case, since such notification is routine, but it is worth checking into in your case.

    HTH, and thanks for reading the blog!~ Caitlin

  5. John Says:
    November 10th, 2008 at 8:43 am

    Would you know if there is a maximum in what I can collect a month/week if I become disabled in NJ. My works private disability benefits will pay 65% of my weekly wages and I have my own private disability benefits with Mutual of Omaha Insurance Company that pays $1000.00 a month. Thanks for any help with this…John

  6. Caitlin Says:
    November 10th, 2008 at 9:59 am

    Hi John, It is impossible for us to give a specific answer in your case, because there are too many variables. However, in most cases, the maximum a person on disability can collect is 100% of his or her usual salary. It is usually not wise for employees to pay for more insurance than that, because they are not going to collect on them. Read more about this at: http://lwd.dol.state.nj.us/labor/tdi/employer/state/sp_emp_memu.html. You can also post questions on our sister site at http://www.laborlawtalk.com. HTH, and thanks for posting a great question!~ Caitlin

  7. John Says:
    November 10th, 2008 at 10:37 am

    Hi Caitlin, Thanks for your post. I will try calling the State on this.. I just don’t want to waste money. But if I get hurt or sick the 65% pay from my work will not cover all my bills… Thanks again

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