Human Resource Blog

New Jersey Temporary Disability

One of our employees is going to have surgery that will qualify her for New Jersey termporary disability, but she has a choice of surgery dates. If she goes on disability in January, will she be paid a higher benefit amount than if she goes in December? 

If the employee has a choice of when to take disability, she would receive more if the disability started in January 2008, rather than in December 2007. That’s assuming that the employee is eligible for the maximum weekly benefit. Normally, that applies to workers who have averaged $794 or more over the past 8 weeks.

 

Under state law, the maximum weekly benefit for claims filed in 2007 is $502 per week. For claims filed in 2008, the maximum weekly benefit is $524.

 

According to Marcela Ospina with the New Jersey Department of Labor and Workforce Development, any short term disability claim filed in 2007 will be at the maximum rate of $502 for the entire period of the disability.

New Jersey is one of just 5 U.S. states that requires employers to participate in a state-wide short term disability program. Under the program, workers receive partial compensation for wages lost for a temporary, non-work-related disability.

The weekly benefit is calculated on the average weekly wage, usually in the 8 weeks before the disability begins. The total wages earned during the 8-week period is divided by 8 to figure the average weekly wage. The average weekly wage is multiplied by 0.66 to determine the weekly benefit amount.

Employees are paid a total benefit equal to 1/3 of their earnings in New Jersey over the past year, or 26 times the weekly benefit, whichever is greater.

In order to qualify for New Jersey short term disability, an employee must have earned $143 or more for at least 20 calendar weeks, or $7,200 or more in the 52 weeks immediately before the disability claim. The employment must be with a business covered by the New Jersey disability program.

Under the New Jersey program, workers do not qualify for benefits for the first seven consecutive days of employment. This period is referred to as the “waiting week.” However, if the employee collects benefits for 3 weeks, they are retroactively paid for the “waiting week.”

In order to qualify, an employee must be under the care of a legally licensed medical professional, such as a doctor, dentist, optometrist, Podiatrist, Psychologist, advanced practice nurse, or chiropractor.