New Jersey Temporary Disability Insurance

What Is Temporary Disability Insurance In New Jersey?

Temporary Disability Insurance, or TDI for short, is insurance coverage mandated by the New Jersey Temporary Disability Benefits (TDB) Law and provides covered employees with partially-paid time off due to a non-work-related illness, injury, or other disability, including pregnancy/birth of a baby.

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 family member, similar to New York’s Paid Family Leave. While ShelterPoint currently doesn’t provide Family Leave Insurance in NJ, you can learn more about NJ FLI on the official state site here.

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.

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.

Pregnant mom baking cookies with daughter

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 a union welfare fund. Learn how to apply for a private plan here.

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Who Is Eligible To Receive Temporary
Disability Insurance Benefits?

Employees who work in the state of New Jersey for a covered employer and meet minimum gross earnings requirements.

In 2024, for example, you must have earned at least $283 weekly over 20 weeks, or have earned $14,200 combined in the base year. The state and approved private plan carriers consider five completed quarters preceding the date of your disability claim, and determines the base year based on the first four quarters of that timeframe. So, for example if your claim begins between April,2024 - June 2024, your claim is based on earnings from January 1, 2023 – December 31, 2023. Your wages can of course include overtime, bonuses, and tips.

Are employees who live outside New Jersey eligible?

They are 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.

And finally, New Jersey doesn’t allow employers or private plans to extend coverage for out-of-state employees.

New York vs. New Jersey: How Do Their Statutory Disability Insurance Coverages Compare?

Our handy infographic illustrates the similarities and differences between New York’s Disability Benefits Law (DBL) versus New Jersey’s Temporary Disability Insurance (TDI). This visual guide gives you a side-by-side look at each program, ranging from eligibility, and qualification periods to rates/premiums and maximum employee contributions.

Download Disability Insurance: New York vs. New Jersey Infographic now!

Learn More About NJ Temporary Disability Insurance

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New Jersey COVID-19 Legislation

Like its neighbor, New York, the State of New Jersey has also responded to the COVID-19 pandemic by providing state-level benefits to help during these unprecedented times Like New York, New Jersey is doing this by modifying its existing statutory insurance: Temporary Disability Insurance (TDI), and Family Leave Insurance (FLI). Get the details on NJ’s Covid-19 Legislation here.

Additionally, Policyholders experiencing financial hardship due to COVID-19 can get more information about grace periods in NJ here.

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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, a NY-domiciled carrier, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.

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

This page is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice.

The information on this page is not intended as an offer of coverage (“Invitation to Contract”). It is for illustrative purposes only, providing a general overview of the services described. It is not a contract. Available in NJ only. 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.

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All policies are underwritten and administered by either ShelterPoint Life Insurance Company (principal office in Garden City, NY), or ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. Contact Underwriting for details.
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