New Jersey TDI: A Comprehensive Guide to Short-Term Disability Benefits

Life can already be hectic and stressful without throwing in a major medical event, illness, or pregnancy that forces you to take time off work. Luckily, if you are a resident of New Jersey, you have access to the state-sponsored Short-Term Disability (DBL) program, also known as New Jersey Temporary Disability Benefits (TDB), to help you through those periods. Here’s what you need to know about New Jersey TDI (Temporary Disability Insurance) and what benefits are available to New Jersey residents through this program.

New Jersey Short-Term Disability SDI: Key Takeaways

• If you are recently unemployed, you may still be eligible for short-term disability benefits in New Jersey
• New Jersey SDI is available for both physical and mental health events, including any disabling physical or mental health condition
• New Jersey SDI can be combined with FMLA to protect your job and health insurance coverage while recovering
• If you receive an on-the-job injury, apply for Worker’s Compensation instead of SDI
• If you apply for disability for an organ or bone marrow donation, the waiting period is waived

What is Short-Term Disability (SDI)?

While it is easy to confuse Disability and Short-Term Disability because of how similar the terms are, they are used in different situations. Disability is available for those who become permanently disabled and are unable to work again, in any capacity.

Short-Term Disability, on the other hand, is a temporary wage replacement program that allows you to keep some of your income while you recover from a medical event or an injury not related to work. Applicants need to provide information from their medical provider to validate their claims.

Who Qualifies for New Jersey SDI?

New Jersey is one of the few states that has its own SDI program at the state level. The others are California, New York, Rhode Island, and Hawai’i. Puerto Rico is not a state, but it has an SDI program, too.

So, how do you know if you qualify for New Jersey Short-Term Disability Insurance? In order to be eligible, you must:

• Be a resident of New Jersey
• Have been employed by a covered employer for at least two weeks prior to becoming disabled
• Meet the salary minimum in order to qualify
• Be unable to work for at least a week due to your disability (this is the unpaid waiting period)
  • However, if your disability prevents you from working for at least 22 days, you can retroactively be paid for that first week

Additionally, employment under the New Jersey Unemployment Compensation Law is included for Family Leave Insurance coverage, which can also impact your eligibility for SDI.

Who Does Not Qualify for New Jersey SDI?

While most workers in New Jersey are eligible for state benefits, there are a few broad categories of people who do not qualify. These include:

• Employees of the federal government
• Some employees of the local government (it is optional for them, but not mandatory)
  • This includes employees of school districts
• Out-of-state employees, even if they reside in New Jersey (remote workers)
• Religious leaders and those who work for faith-based organizations
• Independent contractors, who are not classified as employees

If you are unsure if you are classified as an independent contractor or an employee, check your pay stubs. If you are an employee, you will have deductions taken out of your paycheck, such as income taxes, Social Security, and Medicare. Independent contractors are responsible for paying taxes themselves and receive a 1099 at the end of the year instead of a W2.

Additionally, individuals collecting unemployment benefits may have different eligibility criteria for SDI.

Additional Note on Work-Related Injuries

Generally speaking, New Jersey SDI covers non-work related injuries, not on-the-job injuries. For work-related injuries, you will need to contact the Division of Workers Compensation in order to make a claim.

That said, if your employer’s carrier for worker compensation either denies your benefits or stops payments, you can file for New Jersey Short-Term Disability Insurance. However, there are a few more requirements you must meet in this situation.

These include:

• Meeting all of the normal requirements of Temporary Disability Benefits law
• Filing a formal claim petition with the Division of Workers Compensation, and
• If you end up receiving benefits from Workers Compensation, you must reimburse the Division of Temporary Insurance Benefits for the amount they paid you

In some cases, individuals may instead be eligible to file for Social Security disability benefits, especially if their disability is long-term, or otherwise if their employer provides a private plan instead of or in addition to state coverage.

How Much Money Do I Need to Earn to Qualify for Short-Term Disability Insurance in New Jersey?

The amount that you need to earn in order to qualify for Short-Term Disability Insurance in New Jersey changes every year, to adjust for inflation. As of 2024, you must have earned a combined total of $14,200 in the base year, or you must have earned at least $283 weekly for at least 20 weeks.

So, what is the base year? The base year is the time period from which New Jersey calculates your earnings to determine if you are eligible for short-term disability insurance. The base year is the first four of the five quarters (three months each) before you applied for SDI.

For example, if you made a claim in September 2024, your base period will be the money you earned from April 1, 2023 to March 31, 2024. If you make a claim in December 2024, the base period goes from July 1, 2023 to June 31, 2024.

The maximum benefit for eligible individuals under the Temporary Disability Insurance system is set at $1,055 per week, which is the cap on benefits that individuals can receive during their period of disability.

How is New Jersey Short-Term Disability Insurance Funded?

In New Jersey, both workers and employers fund the state Short-Term Disability Insurance program. Employees in New Jersey contribute 0.14% of their paycheck up to $151,900 earned. In 2022, the maximum contribution from an individual worker was $212.66.

As of 2023 and 2024, no worker contributions were taken out for the New Jersey SDI program, although there is still a contribution taken out for Family Leave Insurance (FLI). These contributions are used to fund benefit payments, which are issued to eligible workers, covering deductions such as federal income tax and Social Security contributions.

How Are Your NJ Short-Term Disability Benefits Calculated Based on Average Weekly Wage?

New Jersey Short-Term Disability is a temporary, partial wage replacement. You will not receive your full paycheck, but it will provide some assistance while you are recovering. But how do you know how much you will receive in weekly payments?

First, they will calculate an average of your weekly earnings during the base period. If you receive a consistent income, your weekly average is your usual weekly income. If your wages varied from week to week, the average is every “base week” (in 2024, every week in which you earned at least $283) added together, then divided by the total number of base weeks.

Claimants will be paid 85% of their average weekly wage, up to a maximum of $1,055 per week in 2024. While SDI provides financial support, it does not necessarily offer job protection, which may be covered by other laws such as the Family and Medical Leave Act (FMLA) and the New Jersey Family Leave Act (NJFLA).

How to Apply for New Jersey Temporary Disability Insurance

Although most workers in New Jersey qualify, you will still need to apply for New Jersey short-term disability benefits in order to receive them. It is not automatic. Below are the following steps you need to take in order to start receiving weekly cash payments.

It is important to submit information from your medical provider when applying for SDI, as this documentation is necessary for validating your claim and determining your eligibility for benefits.

How to Apply

There are several ways to apply for New Jersey Short-Term Disability Insurance. The fastest is online, but you can also apply through mail or fax. All of the instructions are included on the application, so you want to read carefully. Forgetting something could lead to your claim being rejected, even if you qualify.

If you send your application by mail or fax, make sure that you don’t forget to sign and date the application. The New Jersey Family Leave Insurance program also provides benefits for family-related reasons.

New Jersey TDI Forms & Documents You Need

In order to apply for New Jersey Temporary Disability Insurance, there are a lot of documents and information you will need, including:

• Your contact information
• Social security number
• Date of birth
• Contact information of the certified medical professional who treated you within ten days of being unable to work
• Additional medical documents
  • Records from hospitalizations or urgent care
• All dates of jobs and employers you have worked in the past 18 months, and their contact information
• Dates of PTO or other benefits that you’ve received since the last day you worked
• The date that you expect to return to work (or the date that you already returned to work)
• Medical certification that confirms the time period you are unable to work
• Medical documentation for a seriously ill family member if applying for family-related benefits

How to File an Appeal if Your Claim is Rejected

If your claim for New Jersey Short-Term Disability is rejected, you will receive a notice. If you believe your claim was wrongly rejected, you can file an appeal. There are several ways to do so. You can file an appeal online, or you can write to the Division of Temporary Disability and Family Leave Insurance and submit your appeal by mail or fax.

Read the instructions on the notice of rejection for how to appeal. If you don’t want to do the appeal process online, you can send in a written statement to this address:

Division of Temporary Disability Insurance

PO Box 387

Trenton, NJ 08625-0387

You can also fax it to (609) 984-4138. Your written statement must include your name, your Social Security number, address, and signature.

Employees dealing with domestic or sexual violence may have additional support options available.

Alternatives to State-Sponsored Disability Benefits in New Jersey

If you don’t qualify for New Jersey Temporary Disability Insurance, or it doesn’t suit yours and your family’s needs, there are several alternatives. Here are a few other programs that can either be instead of (or together with) New Jersey TDI.

Additionally, New Jersey Family Leave Insurance (FLI), established in 2008, is available as part of the New Jersey Temporary Disability Benefits (TDB) program. Most employers are required to participate in the state program or may opt for private plans through approved providers like The Hartford.

FMLA Leave and Family Leave Insurance

FMLA, or the Family and Medical Leave Act, is a federal program managed by the U.S. Department of Labor. While it does not replace your income at all like temporary disability insurance does, it protects your job and your health insurance for up to twelve weeks until you are recovered enough to return to work. FMLA can also be used to bond with a newly born, adopted, or fostered child, or care for an ill family member.

However, not all employees automatically qualify for FMLA. You must have worked for your employer for at least twelve months, and your employer must have at least fifty employees in order to qualify.

FMLA leave can also interact with unemployment benefits, particularly in situations where individuals are unable to work due to illness, pregnancy, or a leave of absence, and may be eligible for various state programs.

Employer-Sponsored Disability Insurance

Even if you don’t qualify for state insurance, your employer may have its own disability insurance program. If you’re not sure, you can contact your company’s HR department, or check with your employer’s insurer directly for clarification.

If your employer-sponsored disability insurance offers you more or better benefits than New Jersey TDI, that is something you need to consider.

Additionally, New Jersey Family Leave Insurance may be available through employer-sponsored plans, providing family leave benefits.

Short-Term Disability Lawyers in New Jersey

The process of claiming Short-Term Disability Insurance (SDI) can be stressful and intimidating, but you don’t have to do it alone. Working with a good disability lawyer can increase your chances of successfully obtaining the benefits you deserve, and fight for you if you need to appeal a rejected claim. You can rely on their expertise while you focus on recovering.