Under New Jersey's Temporary Disability Benefits (TDB) Law, virtually all New Jersey employers are required to furnish disability insurance, which provides employees with replacement income when they are disabled by non-job-related accidents or illnesses (NJ Stat. Ann. Sec. 43:21-25 et seq.). (Workers' compensation covers job-related injuries.) The state has its own program, but employers may choose to provide private disability insurance, or become self-insurers, instead of participating in the state system, as long as the benefits are equal or superior to those under the state plan.
Generally, New Jersey employers and employees are subject to the TDB Law if they are covered under the New Jersey Unemployment Compensation Law (NJ Stat. Ann. Sec. 43:21-27). State employees and employees of state colleges are covered, and although there is an exception for certain other government entities, they may choose to elect coverage for their employees. Employees who depend on prayer or spiritual means for healing may elect not to be covered (NJ Stat. Ann. Sec. 43:21-31).