New Jersey Temporary Disability Insurance

Quick Facts

• Benefit rate: 85% of average weekly wage (AWW), capped at $1,055 per week in 2025.
• Duration: Up to 26 weeks of benefits per disability period.
• Funding: Employee payroll deductions of 0.26% of wages up to the taxable wage base in 2025. Employers may voluntarily contribute to reduce employee rates.
• Administration: Managed by the New Jersey Department of Labor (NJDOL) via MyLeaveBenefits portal or paper Form DS-1.

Program Overview

New Jersey Temporary Disability Insurance (TDI) offers wage replacement when workers cannot perform their job due to a non-work-related medical condition, including pregnancy and childbirth recovery. The program predates many other state systems and provides coordinated benefits with the state’s Family Leave Insurance for bonding or caregiving. Most W-2 employees contribute through payroll and are automatically covered. Self-employed individuals can opt into coverage via elective plans.

TDI applies to disabilities lasting at least seven consecutive days. Benefits are paid weekly and can be direct deposited. The program covers a broad definition of serious health conditions, from surgery recovery to mental health conditions requiring intensive treatment. NJDOL requires medical certification and may request updated information for longer claims.

Eligibility Requirements

1. Base-year earnings: Either earned $13,000 in the base year or worked 20 weeks with wages of at least $269 per week (2025 thresholds). The base year is the 52 weeks before the disability begins.
2. Payroll contributions: Must have paid into TDI via payroll deductions or elective coverage.
3. Medical certification: A licensed health care provider must certify that you are unable to work and describe the condition, treatment plan, and expected recovery date.
4. Timely filing: Submit your claim within 30 days of the first day you stop working. Late filings may be accepted with good cause but can reduce benefits.

Benefit Calculation

• Average weekly wage: NJDOL calculates AWW by dividing base-year wages by the number of base weeks (weeks earning $269 or more).
• Benefit amount: 85% of AWW, capped at $1,055 per week.
• Duration: Up to 26 weeks per disability. Combined TDI and Family Leave Insurance benefits are capped at 26 weeks in a benefit year.
• Waiting period: No waiting week; benefits begin immediately once approved.

Application Process

1. Notify employer and gather information. Provide the date you stopped working and discuss coordination with employer-provided benefits.
2. File online at MyLeaveBenefits. Alternatively, complete paper Form DS-1.
3. Complete Part A. Provide personal information, employer details, and the date disability began.
4. Have your healthcare provider complete Part C. They must describe diagnosis, treatment, hospitalization dates, and anticipated recovery.
5. Employer statement (Part B). Employers verify wages and last day worked. If the employer does not respond, NJDOL may use wage records.
6. Submit within 30 days. Upload documentation and submit the claim. Keep copies for your records.
7. Monitor status. Log into MyLeaveBenefits for updates. Respond promptly to additional requests, such as Supplemental Certification (Form DS-7).

Documentation Checklist

• Physician’s certification with diagnosis and dates of treatment.
• Hospital records or surgical reports, if applicable.
• Proof of income if wage records are incomplete.
• For pregnancy claims, estimated due date, delivery date, and type of delivery.

Coordination with Other Benefits

• Family Leave Insurance: After TDI ends, you can apply for bonding or caregiving benefits under FLI. The programs share systems.
• Employer-provided short-term disability: Some employers have private plans that meet or exceed state requirements. If your employer provides a private plan, apply through that carrier.
• Workers’ compensation: TDI does not cover work-related injuries; workers’ compensation is primary. If a workers’ comp claim is denied, you may receive TDI while appealing.
• Unemployment insurance: Not available while receiving TDI because you are not able to work.

Tips for Maximizing Benefits

1. File promptly. Delays can reduce benefits. Submit online as soon as you stop working.
2. Ensure accurate medical details. Ask your provider to include functional limitations (e.g., inability to lift, stand, or focus) that relate to your job duties.
3. Plan for transition to FLI. Parents often use TDI for pregnancy recovery, then FLI for bonding. Mark the date your doctor releases you to plan the switch.
4. Request voluntary tax withholding. TDI benefits are subject to federal tax; you can elect 10% withholding.
5. Keep a diary. Document symptoms, treatment, and communications with NJDOL for reference.

Avoiding Common Mistakes

• Late filing: Submit within 30 days. If hospitalized, include documentation explaining the delay.
• Incomplete employer form: Follow up with HR to ensure Part B is submitted. If they refuse, send NJDOL proof of your request.
• Working while claiming benefits: Report any earnings. Partial wages may reduce benefits, but failure to report can trigger penalties.
• Missing supplemental certifications: For longer disabilities, NJDOL will request updated medical statements. Respond by the deadline.

Appeals

If denied, file a written appeal within seven days of receipt (or 10 days of mailing). Provide supporting documentation. Appeals may involve a telephone hearing before an Appeals Examiner. Further appeals go to the Board of Review and the Appellate Division.

Example Scenarios

• Surgery recovery: Mei underwent back surgery requiring 10 weeks off. Her surgeon certified the disability, and she received the maximum weekly benefit.
• High-risk pregnancy: Tasha’s doctor placed her on bed rest 6 weeks before delivery and certified 8 weeks postpartum. She transitioned to FLI for bonding afterward.
• Mental health treatment: Chris entered an intensive outpatient program for severe anxiety. The psychiatrist provided certification for 6 weeks, and Chris submitted weekly therapy schedules to NJDOL.

Resources

• NJDOL Temporary Disability Insurance
• How to apply
• Form DS-1
• Contact center or call 609-292-7060
• FAQ

Advanced Tips

• Elective coverage: Self-employed workers can opt in by filing Form CE-1. Maintain coverage for at least two years.
• Intermittent disability: If your provider allows part-time work, TDI can pay partial benefits. Report hours to avoid overpayments.
• Recurrent claims: If a disability recurs within 14 days of recovery, it may be treated as a continuation, avoiding a new waiting period.
• Coordination with paid sick leave: Use earned sick leave to supplement TDI during waiting periods or partial weeks.

Additional Planning Tips

• Prepare for reduced income: Create a budget worksheet before leave starts, focusing on essential expenses. Consider pausing optional payroll deductions temporarily.
• Coordinate health benefits: Confirm with HR how to pay your share of premiums while on leave. Set reminders for due dates to avoid lapses in coverage.
• Workplace communication: Request written confirmation of your leave dates and expected return. Establish a point of contact for urgent matters to reduce stress during recovery.
• Access community resources: Explore New Jersey’s 211 helpline, hospital social workers, or nonprofit organizations that offer financial counseling, transportation assistance, or caregiving support during extended disability.

Frequently Asked Questions

Can I travel while receiving TDI? You may travel if your healthcare provider approves and travel does not interfere with recovery. Inform NJDOL of travel plans; failure to do so can trigger fraud investigations.

What if I have multiple jobs? Report all employers on your application. Benefits consider wages from all covered employers. If you can perform one job but not another, benefits may be reduced accordingly.

How soon can I reapply after returning to work? If the same disability returns within 14 days, your claim resumes without a new application. After 14 days, file a new claim.

Can I receive TDI while attending school or training? Only if participation is part of your prescribed treatment plan. Otherwise, NJDOL may deem you able to work and stop benefits.