How to Apply for Short-Term Disability Insurance & Temporary Disability Benefits

It’s a stressful situation when an illness or injury prevents you from working and you still have bills to pay. Especially since Social Security Disability Insurance (SSDI) payments don’t kick in until at least the sixth full month of disability… and that’s if you receive approval! Recognizing that there’s a need for a temporary benefits option for many workers, a handful of states offer short-term disability. State disability insurance (SDI) and temporary disability insurance (TDI) are faster and easier to obtain than SSDI or SSI, and they offer protection for workers who either experienced a short-term disability or who are waiting for long-term disability benefits.

However, there is still a list of requirements for short-term disability that an individual must meet for coverage. Read on to find out if SDI/TDI is available in your state and how you can apply.

How to Apply for Short-Term Disability Insurance: Key Takeaways

Short-term disability benefits are a helpful stop-gap for employees who must cease work owing to illness, injury, or pregnancy. These supplemental benefits are available if you’re living in one of the states that offer such a program. However, there are requirements for short-term disability and things to know about applying. Here are some of the key points to keep in mind:

• Purpose: SDI and TDI are set up to offer short-term payments to qualified individuals who have had to stop work on a temporary basis. 
• Location: Only certain states require these insurance programs, which are available through one’s employer. The employer contracts with private or state insurance to cover their employees. 
• Amount: Short-term benefit amounts depend on the state, but usually are anywhere from 50-85% of an individual’s average weekly wage. However, there may be benefit maximums that mean actual payouts are much lower than that. 
• Eligibility: There are a variety of situations that may qualify an individual for SDI/TDI including illnesses, injuries, and childbirth. Generally, anyone needing time off from work for a week or more because of a short-term condition may be eligible. 
• Application: Anyone seeking these benefits will have to go through an application process, but it’s simpler than SSDI applications. However, there are certain requirements for short-term disability that a person must satisfy in order to get payouts. 
• Duration: SDI/TDI benefits are usually available for a maximum of 26-52 weeks in most situations.
• Co-insurance possibilities: SDI/TDI differs from other programs like family leave, but a person may sometimes apply for and receive multiple assistance plans. 

What is Short-Term Disability Insurance?

Short-term disability or temporary disability insurance is a state disability program available to workers facing injury or illness. As the name suggests it’s limited in scope, meaning it’s available only for a certain number of weeks or months. Its purpose is to fill the gap for individuals who cannot work but who aren’t currently eligible for SSDI. The catch is that SDI/TDI is only available in certain states. However, if you live somewhere that doesn’t support a state program, you might be able to purchase your own policy. The caveat is that short-term disability insurance not through employers may be quite expensive. 

Which States Offer Short-Term Disability Insurance?

Currently, there are only five states that have a mandated short-term disability requirement for employers. They are California, Hawai’i, New Jersey, New York, and Rhode Island. 

Each state has its own rules surrounding the requirements for short-term disability. They also vary in the payment amounts, duration, and timing. However, if you live in one of these states and have an eligible condition you may qualify to receive SDI. 

California SDI

More than 18 million California workers have potential coverage through the California State Disability Insurance program. To qualify for this SDI, an employee must pay into the system through employee contributions during a 12-month base period. In California, this contribution shows up as a CASDI deduction on an employee’s paycheck. The basic eligibility criteria in California require that claimants earn at least $300 and pay into SDI before applying.  

Workers can seek SDI if they have a non-work-related illness/injury or a pregnancy. They must have been unable to work for eight consecutive days and see a physician in that time period. 

If successful, California SDI will pay around 60-70% of the worker’s wages with a $1,620 maximum weekly cap for up to 52 weeks.

If you think you qualify, you may apply for benefits through California’s Employment Development Department. 

California SDI FAQ:

• Wage replacement rate: 60-70%
• Maximum wage cap: $1,620/week
• Maximum benefits duration: 52 weeks
• Work history requirement: $300 during a 12-month base period
• Waiting period: 8 consecutive days unable to work 

Hawai’i TDI

Hawai’i’s short-term program is under the moniker of Temporary Disability Insurance (TDI). It’s available for workers demonstrating employment in Hawai’i for at least 14 weeks prior to their injury, illness or pregnancy. The 14 weeks need not be consecutive or with the same employer. 

Workers must also show payment for at least 20 hours of work and no less than $400 in those weeks. This is the threshold applicants must meet for every qualifying week they wish to count within their 12-month lookback period.

Employees who are unable to work must wait seven days before applying for Hawai’i’s TDI

program. During that interim they must also receive care from a physician or other licensed healthcare provider for their non-work-related condition. Applications for benefits must be within 90 days from the disability start date. 

Those who qualify will receive up to 58% of their wages, or a weekly maximum of $765 for 26 weeks.

If you think you are eligible, learn more about the application process through Hawai’i’s Disability Compensation Division.  

Hawai’i TDI FAQ:

• Wage replacement rate: 58%
• Maximum wage cap: $765/week
• Maximum benefits duration: 26 weeks
• Work history requirement: 14 weeks at 20+ hours/week and at least $400 of earnings in the last 52 weeks. 
• Waiting period: 7 days 

New Jersey TDI

New Jersey Temporary Disability Insurance (TDI) provides cash benefits to workers who must cease working due to a non-work-related condition. To be eligible an employee must have previously paid into the program and meet minimum gross earning requirements. In 2024 that means working at least 20 weeks earning $283 weekly, or $14,200 in the base year. 

For those who qualify, they may receive up to 85% of their weekly wages. But payments will never exceed the 2024 maximum of $1,055 per week. New Jersey TDI will pay benefits for up to 26 weeks. 

In New Jersey, TDI is available for employed workers, except federal government, faith-based, and out-of-state employees. Independent contractors will not qualify for TDI but should check to make sure they’re not misclassified by their employer. Unemployed workers may be able to qualify for TDI, but they’ll need to apply through the Disability During Unemployment program. 

If after a seven-day waiting period you’re still unable to work, you can apply. Start your application online via the New Jersey Department of Labor and Workforce Development. 

New Jersey TDI FAQ:

• Wage replacement rate: 85%
• Maximum wage cap: $1,055
• Maximum benefits duration: 26 weeks 
• Work history requirement: 20 weeks earning $283 weekly, or $14,200 in the base year
• Waiting period: 7 days 

New York TDI

New York law mandates that employers acquire State Disability Insurance (SDI) for employees experiencing non-work-related disabilities. These benefits are fairly low comparative to other states since the compensation maximum for qualified applicants is $170/week. Technically it’s 50% of a person’s weekly wage for the eight weeks prior to the illness, injury or pregnancy. But with such a low threshold, most workers will receive the max amount for up to 26 weeks total.

Disabled workers can apply on the eighth day of disability after a seven-day waiting period. However, they must file within 30 days of their condition’s onset.

There is a required seven-day waiting period before an employee can apply, and they must seek medical care in that interim. In New York, the Workers’ Compensation Board approves and administers payments. Anyone who thinks they may qualify can get more specific application details online via the New York State Workers’ Compensation Board. 

New York TDI FAQ:

• Wage replacement rate: 50%
• Maximum wage cap: $170
• Maximum benefits duration: 26 weeks 
• Work history requirement: Regularly employed at least 50% of full time and making $15,000 in the base year
• Waiting period: 7 days

Rhode Island TDI & TCI

Rhode Island offers Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI) benefits to workers who qualify. Funds to support the program come directly from workers paying into the state’s coffer from their paychecks. As such, only workers who pay into the program will be eligible should they need to partake in these payments.

To be eligible an employee must earn at least $15,600 in the base period before their claim. That is generally four out of the five quarters that precede the disability or necessary time off for caregiving. They may also qualify if they earn all of the following:

• At least $2,600 in one of the base period quarters 
• Total base period wages of at least 1.5 times the highest quarter earnings
•  Total base period earnings of at least $5,200.

This is a totally state-run program and employers must deduct and remit employee contributions into the fund. If an employee needs to partake in the program, they must wait seven days before applying. The amount they receive in benefits will be 4.62% of the earnings of their highest base-period quarter. The maximum payment, however, is $1,007/week for up to 30 weeks.

Anyone thinking they may qualify should pursue their claim through the Rhode Island Department of Labor and Training. 

Rhode Island TDI FAQ:

• Wage replacement rate: 4.62% of earned wages in the highest base period quarter
• Maximum wage cap: $1,007
• Maximum benefits duration: 30 weeks 
• Work history requirement: Earnings of at least $15,600 in base period
• Waiting period: 7 days

SDI vs. PFML vs. FMLA

SDI isn’t the only program that protects workers who have to take a temporary work break for a qualifying condition. 

The Family and Medical Leave Act (FMLA) provides job protection for employees needing time off for certain conditions. Under FMLA, employees are entitled to up to 12 weeks of job-protected leave for approved illnesses, injuries, or caregiving issues. However, FMLA does not offer financial support. On the other hand, State Disability Insurance (SDI) provides financial assistance during time off but does not protect your job. Therefore, it is possible to qualify for both SDI and FMLA simultaneously to ensure both job protection and financial support.

Alternatively, the Paid Family and Medical Leave (PFML) program can offer eligible employees paid medical, caregiving, parental, deployment, and safe leave. As of 2024, 12 states and the District of Columbia support PFML, including:

• California
• Colorado
• Connecticut
• District of Columbia
• Delaware (beginning in January 2025)
• Illinois
• Maryland
• Massachusetts
• New Jersey
• New York
• Oregon
• Rhode Island
• Washington

Every state that offers SDI is on that list except for Hawai’i. In the states where there is an overlap of SDI and PFML, an individual may qualify for both. However, a claimant usually cannot receive SDI and PFML at the same time.  

Can you buy SDI coverage from a private insurance company?

While it’s possible to purchase SDI coverage from a private insurance company, it’s also a pricey proposition. In most cases, the best option is to purchase it through an employer if it’s on offer as a benefit.

If your state doesn’t mandate SDI, and your employer doesn’t negotiate a group plan, you can go it solo. However, there are some drawbacks including:

• Higher costs. Private policies tend to be more expensive compared to employer plans with group rates.
• Acceptance isn’t automatic. The insurer will assess your age, health status, and other factors before issuing a policy and premium.
• Pre-existing conditions. Short-term “conditions” like pregnancy may be on the pre-existing list. As such, if you’re already pregnant while applying you may not receive coverage.

Does SDI include job protection?

Short-term disability does not include job protection by itself. It is just a supplemental benefits program. However, other laws like the FMLA may protect your job. That’s why it’s important to check your specific state’s programs so you know what protections you have. 

SDI vs. long-term disability insurance

Basically, the difference between short-term and long-term disability insurance is time. With short-term insurance, the disability is not likely to last more than a year. With long-term, a disability may drag on for years or even a lifetime. As such, SDI usually runs out somewhere between three months to, at most, a year. Long-term disability programs like SSDI, meanwhile, don’t kick in until six months after the disability’s onset and can take over a year to be approved for.

SDI vs. workers’ comp

SDI will not cover any injuries that happen at work. That’s because work-related illnesses or injuries instead fall under workers’ comp laws and provisions. 

Workers’ comp is a different type of employment insurance. It provides cash benefits and/or medical care for workers facing a disability as a direct result of their job.   

Let a Disability Lawyer Help With Your Claim

Applying for any type of disability coverage can be confusing, especially with all the different programs that vary by state. If you’re having trouble navigating the system, or need to appeal a previously submitted claim, consider consulting a disability lawyer. Employees have rights and you deserve to get all the benefits you’ve earned through your hard work. And that includes compensated time off when you need it!