Disability benefits

A New Jersey employer subject to the Unemployment Compensation Law also is subject to the Temporary Disability Benefits Law, except for certain government entities. The TDB law requires employers to provide specified wage-loss benefits to employees for off-the-job injuries or illnesses. A subject employer is automatically covered under the state plan unless workers are covered under an approved private plan. A private plan can be provided by an insurer or by employer that is approved to self-insure. A private plan also may be established through a labor-management agreement.

An employer's state plan disability tax rate is computed yearly in a manner similar to the unemployment rate; a "reserve ratio" system incorporates: 1) the employer's excess or deficit reserve balance percentage, and 2) the condition of the State Disability Benefits Fund. Employer and employee tax contributions for payment of these benefits are based upon a percentage of the taxable wage base of the employer. The employee's cost in a private plan cannot exceed the cost in the state plan.

To establish a valid claim, a worker must have had at least 20 base weeks of New Jersey covered employment or, in the alternative, must have earned $8,400 for year 2016 ($8,300 for year 2015) in covered employment during the 52 weeks immediately preceding the week in which the disability begins.

The benefit paid is two-thirds of the employee's weekly wage, subject to a maximum weekly benefit of $615 for year 2016 ($604 for year 2015), and it is paid for a maximum of 26 weeks. There is a seven-day waiting period with retroactive coverage for that seven days if the disability continues for at least three weeks. The maximum amount of benefits that may be paid for each period of disability is one-third of the total wages in New Jersey covered employment paid to the worker during the base-year, or 26 times the weekly benefit amount, whichever is less.

If a worker expects to be disabled for more than seven days, the employee must file the disability claim at: http://lwd.dol.state.nj.us/labor/forms_pdfs/tdi/WDS1.pdf.

Related QuickSource documents

QS90341 - The ADA may require more than you realize

Related Ask PIAs

Four-state resources

900266-00 - Disability for employees working out-of-state
900114-00 - States with statutory disability

New Jersey resources

290009-00 - Disability offset
290059-00 - Contested claims

Common forms

New Jersey Division of Temporary Disability Insurance Claim For Disability Benefits (DS-1)

Additional resources

Temporary Disability Insurance Program
Disability During Unemployment Program
Temporary Disability FAQs
Employer Handbook