11 June 2020

NJ Temporary Disability Insurance: Changes Effective July 1, 2020

New TDI benefit percentages increase the maximum benefit amount – plus FLI changes going into effect at the same time

NJ Temporary Disability Insurance: Changes Effective July 1, 2020

Some more big changes to New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) are set to take effect on July 1, 2020. Here is what you need to know.

New Jersey Benefit Changes Effective July 1, 2020

The benefit level is increasing for both New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI). 

 

New TDI benefit percentages increase the maximum benefit amount

The benefit percentages increase from 66 2/3% of an employee’s average weekly wage (AWW) capped at 53% of the NJ statewide average weekly wage (NJS AWW) to 85% of an employee’s AWW capped at 70% of NJS AWW. This brings the maximum weekly benefit to $881 for the rest of 2020.

It’s important to note, Temporary Disability benefits are paid based on the date of the actual disability (not the date you file your claim) for the full duration of the leave. This means, if you put in a claim mid-June, for example, and are out on TDI for 3 months, your entire claim would be paid at the current maximum benefit of $667/week; it will not go up to $881 on July 1st for the remainder of your disability leave.

 

Additionally, these FLI benefit changes also go into effect July 1, 2020:

  • Leave duration is increasing to 12 weeks. 
  • The intermittent leave duration increases to a maximum of 56 days.
  • A NJ employee with 2 jobs would be able to keep the second job while receiving FLI benefits from the first job, as long as the second job’s hours don’t increase.

 

For earlier TDI and FLI changes that took effect in January of this year, read our earlier post here.

To learn how NJ addressed COVID-19 through TDI and FLI emergency regulation, go here.

Want to stay updated on NJ Temporary Disability Insurance? Sign up for updates today!

FLI provides for a private carrier option, but FLI is not offered by ShelterPoint, and most other carriers. 

 

 

The information in this post is not intended as an offer of coverage (“Invitation to Contract”). It is for illustrative purposes only, providing a general overview of the services descred. It is not a contract. Available in NJ only.  ShelterPoint Life provides Temporary Disability Insurance private plans and does not provide Family Leave Insurance private plans.  The Temporary Disability Benefits (TDB) Law (Temporary Disability Benefits law (P.L.1948, c.110 (C:43-21-25 et seq.) governs this private plan and its interpretation and administration. All coverage extends up to TDB Law limits reflected in this policy. Please refer to the policy and TDB law for coverage details, a complete listing of covered services, provisions, conditions, exclusions, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and applicable TDB Law, the policy and TDB Law will take precedence over what is shown in this material.  Claim payment is not guaranteed; benefit amount depends on wages. Policies have a statutory 7-day waiting period.

Underwritten by:

ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# TDB-P-NJ)

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