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What Is New Jersey Temporary Disability Insurance?

Temporary Disability Insurance, or TDI for short, is statutory short-term disability insurance as mandated by the New Jersey Temporary Disability Benefits (TDB) Law. TDI provides covered employees with up to 26 weeks of partially paid time off due to a non-work-related illness, injury, or disability, as well as childbirth and pregnancy-related complications, such as bedrest.

This benefit is for the employee’s own leave. New Jersey has another program, Family Leave Insurance (FLI), which provides partially paid wage replacement to care for a seriously ill family member, similar to New York’s Paid Family Leave. While ShelterPoint 1 currently doesn’t provide Family Leave Insurance in NJ, you can learn more about NJ FLI on the official state site here.

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Are All New Jersey Employers Required To Provide TDI?

Covered employers – or private employers with one or more employees and a minimum payroll of $1,000 - must contribute to the state fund or provide an approved private plan to their employees.

There are some limited exceptions, e.g., it’s optional for government entities to provide this benefit.

By default, employers receive Temporary Disability Insurance coverage for their employees through the NJ state plan. Employers have the option to instead provide this coverage through a private insurance carrier in the form of an approved Private Plan.

 


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What is an Approved Private Plan?

An approved Private Plan is an alternative to the New Jersey TDI state plan and can be self-funded by a NJ employer, provided through an approved insurance carrier like us, or through a union welfare fund.
Learn how to apply for a Private Plan here.

Learn more

Who Is Eligible To Receive Temporary
Disability Insurance Benefits?

Employees need to meet certain criteria regardless of whether coverage is provided through the State or a Private Plan:

  • At time of claim, reported earnings for the first 5 completed quarters leading up to the start of the disability are considered for the benefit calculation.
  • The first 4 quarters of this lookback period are considered the base year. To qualify for TDI, employees must have worked at least 20 base weeks during their base year and meet certain minimum gross earnings requirements, which usually change on an annual basis. Visit New Jersey’s program page for the current earnings requirements.
  • Wages include overtime, bonuses, and tips.
  • For more details, including how to count back properly and determine the average weekly wage, visit our NJ TDI Benefits page.

Are employees who live outside New Jersey eligible?

They are eligible under the following conditions:

  • They work for a New Jersey employer who has to provide TDI,
  • They work in New Jersey, and
  • Their state unemployment withholdings are made to New Jersey.

New Jersey doesn’t allow employers or Private Plans to extend coverage to out-of-state employees.

 


Learn More About NJ Temporary Disability Insurance

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*The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company (principal office in Garden City, NY) and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.

This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of NJ’s applicable laws and regulations as of the publication date and may change as regulations evolve or NJ issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.

Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.

The Temporary Disability Benefits (TDB) Law (P.L.1948, c.110 (C:43-21-25 et seq.)) and applicable Administrative Code (N.J.A.C. 12:18-1 et seq.) govern this Private Plan and its interpretation and administration. Available in NJ only. 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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