New Jersey Temporary Disability Insurance - Legislative Guidance

Table of Contents

Overview
Employer Coverage
Employee Eligibility
Qualifying Absence Reasons and Leave Duration
How Leave Can be Taken
Certification Requirements
Pay and Benefits
Interaction with Other Laws
Employee and Employer Responsibilities
Resources

Overview

New Jersey eligible employees may receive up to 26 weeks of partial pay benefits and job-protection, while on leave for the employee’s own health condition or pregnancy disability during a base covered determined by the Division of Temporary Disability Insurance (The Division).

Claims and payment are administered by the state funded through employee payroll contributions. New Jersey employers may choose to have a private, equivalent plan that provides the same or greater benefits than the state benefits. Equivalent plans must be approved by the Division of Temporary Disability Insurance, Private Plan Compliance Section.

The Division does not require an employer response to make payment, instead they send notification of decisions which employers must review to ensure there are no inaccuracies. The Division supplies tax information to employers for employee’s claims, if during the claim process, the employee does not elect to withhold taxes from their disability payments.

AbsenceSoft Policies

New Jersey Temporary Disability Insurance is configured in AbsenceSoft with the policy code and naming below:

• New Jersey Temporary Disability NJ-STD

Legislation codes and statues

The information presented in the guidance relates to the following legislative codes, links to the specific legislation can be found within the ‘Resources’ section of this document:

• New Jersey Statues Title 43, Chapter 21, section 21-25 - 21-56 (N.J. Stat. Ann. §43:21-25 - §43:21-56)

• New Jersey Administrative Code, Title 12, Chapter 18,Sections 1.1- 1.8 (N.J.A.C. §12:18 et al)

Employer Coverage

Employers subject to the New Jersey Unemployment Compensation law with the following exceptions:

• Federal government employees (exempt)

• Local government employees (may opt-in)

• Religious organizations (exempt)

Employee Eligibility

Employees working in the state of New Jersey where their employer is subject to the New Jersey Unemployment law or have opted into the NJTDI and have a qualifying reason for benefit payment. Employees must meet minimum earnings requirements which may fluctuate year over year over at least 20 weeks of the last four or five calendar quarters. Earnings are considered from all employers the employee may have within the base year, not just the current employer.

Exclusions:

• Contractors

• Out-of-state employees who do not work in New Jersey

Qualifying Absence Reasons and Leave Duration

An employee may take up to 26 weeks of wage replacement benefits in a base period, determined by the state.

Medical Care

• Employee Health Condition: Care for the employee’s own serious health condition except if self-inflicted or injury received if employee was involved in a crime.

• Marrow Donor¹: Donation of bone marrow

• Organ Donor¹: Donation of an organ

• Pregnancy/Maternity: Pregnancy disability or pregnancy-related disability.

• Isolation or quarantine due to a state declared epidemic: when emergency declaration by the Governor for epidemics to avoid the spread of disease which may include a family member who is susceptible or exposed requiring an employee to isolate, if the employee themselves may have been exposed, or other facts provided by a healthcare provider indicating the need for quarantine or isolation.

Safe Leave/Domestic Violence

• Domestic Violence/Safe Leave: an individual who is a victim of domestic violence or sexual assault or violence where there is a medical reason for leave.

How Leave Can be Taken

Employees may take leave consecutively, or on a reduced schedule for any qualifying reason.

• Consecutive leave: A continuous, uninterrupted period of leave taken for a single qualifying reason.

• Intermittent leave: Leave taken in separate, sometimes unpredictable, blocks of time (either hours, days or weeks) between the start and end dates of leave.

• Reduced schedule: A reduction to the employees’ work schedule that results in either fewer hours per day or fewer days per week. A reduced schedule is consistent from one week to the next.

💡 The state indicates a reduced schedule is available when an employee is returning to work on a part-time basis and if the employer allows for such an arrangement.²

Wage replacement is not payable in less than one day increments.

Certification Requirements

Employees will receive documentation requirements from the state and should return them directly to the state for processing.

Employers may be asked to confirm the responses of the employee or provide information about employer pay benefits the employee is receiving. If the employer does not respond to the inquiry, benefits will still be paid to the employee.

Pay and Benefits

Where state pay benefits are involved with other law interactions, such as state mandated sick pay programs, employers will want to consider where PTO/employer pay benefit application should occur.

There is a 7-day waiting period for benefits in some circumstances:

• Organ and Bone Marrow donation, there is no waiting period.

• If the leave is less than three weeks in length, there is a waiting period

• If the leave is extended to three weeks or more, there is no waiting period and in cases of extension, the waiting period may be paid retroactively to the employee.

Amount of Pay

Pay benefit amount is determined based on the earnings the employee received from all qualifying sources within a base period determined by the state, computed to an average weekly wage (AWW). The AWW is calculated to a state determined percentage and then subjected to the state’s maximum weekly benefit allowed in that calendar year.

Employers should review the state website for further information on AWW increases and benefit calculations.

Use of Paid Time Off (PTO)/Employer Benefits

Employers cannot require an employee use paid time off benefits. However, an employee may request to utilize PTO, vacation, or other employer-sponsored benefits in addition to the benefits offered under NJTDI.³

Employees may also use Earned Sick Pay but they will not be able to receive both Disability Insurance benefits and Earned Sick Pay at the same time. Employees will have the choice as to which they prefer and should communicate to their employer.

Job Protection

Employees must be restored to the same or equivalent position following leave with same terms, conditions and employment privileges. The law also offers discrimination/retaliation protections for those receiving or requesting NJTDI callout discharging the employee or making changes to pay, conditions or other terms of employment.

Other Protections

Employees who invoke their right to NJTDI are protected from discrimination and retaliation. Employers are prohibited from denying leave or interfering with employee rights under NJTDI.

Benefits

Benefits should be retained while an employee is approved for NJTDI.

Interaction with Other Laws

Where an employee meets the definition of family member, qualifying absence reason, or serious health condition, the state and federal laws may interact. Accommodations that are not leave related, would not run concurrently with other state or federal leave laws.

Family and Medical Leave Act (FMLA)

NJTDI may run concurrently with FMLA in certain circumstances where a serious health condition definition is met.

New Jersey Family Leave Act (NJFL)

NJTDI and NJFLA may run concurrently. There are limited situations where an employee may continue disability payments but also take NJFL.⁴

New Jersey Pregnancy Disability Leave (NJPDL)

NJTDI may run concurrently with NJPDL.

New Jersey SAFE Act (NJSAFE)

NJTDI may run concurrently with NJSAFE where applicable relating to employee’s own disability.

New Jersey Paid Family Leave Insurance(NJFLI)

NJTDI and NJFLI will not run concurrently.

Unemployment

There are times when an employee may apply for Unemployment and NJTDI benefits. Employees should contact the state for claims.

Workers Compensation

NJTDI in most cases is not paid while Workers Compensation benefits are paid. While waiting for determinations on Workers Compensation benefits, an employee may be approved for NJTDI. There may be limited circumstances where NJTDI will be reduced by Workers Compensation benefits from settlement situations.

Employee and Employer Responsibilities

Employee Responsibilities

• Notify employer of request to take NJTDI at least 60 days prior unless unforeseeable circumstances;

• File claim and return documentation directly to The Division; and

• Follow proper policies and procedures of the employer.

Employer Responsibilities

• Posting requirements are as follows and all posters must be a place that is conspicuous/frequented by employees:

  • Provide at time of hire, at the time an employee request may qualify them for benefits, the employee requests leave applicable to the regulations, and when an employee requests a copy of the notice.

  • Poster requirements must indicate if the employer participates in the NJTDI, the benefits available for participating employers, and pregnancy disability is a qualifying reason;

• Withhold proper deductions from employee paychecks and submit to the state;

• Respond to inquiries and tax forms from the state; and

• Review state decision information for inaccuracies.

Resources

• New Jersey Paid Family Leave website: https://www.nj.gov/labor/myleavebenefits/about/laws/ and https://www.nj.gov/labor/myleavebenefits/worker/tdi/

• New Jersey Legislation: Statues N.J.S.A. 43:21-25 and Administrative Code N.J.A.C. 12:18

Footnotes:

1. N.J.S.A. § 43:21-29

2. N.J.S.A. §43: 21-40

3. N.J.S.A. §43: 21-55.2 and N.J.S.A. §43:21-29.2

4. N.J.A.C. §13:14-1.6 2(c )