Federal & State Regulations | Disability benefits - New Jersey

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Summary of differences between federal and state regulations

There is no federal or state mandate for employer-sponsored, non-occupational disability benefits. Under the New Jersey Temporary Disability Benefits Law, cash benefits are payable when an employee cannot work because of sickness or injury that is not work-related. For work-related injuries, see the Workers’ compensation topic.

New Jersey’s Temporary Disability Benefits Law provides the following:

All New Jersey employers covered by the Unemployment Compensation Law are also subject to the Temporary Disability Benefits Law with the exception of certain government entities.
Employers may provide disability insurance through a state plan or private plan.
New Jersey workers contribute at the rate of one-half of one percent (0.38%) on the first $31,500 (this is known as the taxable wage base) in covered wages earned during the calendar year. The maximum worker contributions for either state plan or private plan coverage in 2014 is $119.70.
In order to have a valid claim for disability, a claimant must have had at least 20 calendar weeks in covered New Jersey employment in which he/she earned $145 or more (called "base weeks"), or have earned $7,300 or more in such employment during the "Base Year" period. The "Base Year" is the 52 weeks immediately before the week in which the disability began. Only covered wages earned during the base year period can be used in determining a claim.
The employer for whom the claimant last worked immediately prior to the onset of the disability will assume all the charges for all benefits paid to the claimant for that period of disability.
If an employee’s disability begins on or after the start of the labor dispute in which the employee is a participant, disability benefits will not be paid for the duration of the dispute.