New Jersey Disability Insurance laws & compensation compliance analysis

New Jersey Disability Insurance: What you need to know

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.
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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).
Both employers and employees make contributions to the cost of temporary disability coverage. Each year, the amount of such contributions is subject to change. For more information on employer and employee contribution levels, visit
Posting. Every employer must post, in prominent locations, notices to employees regarding whether the employer is permitted or required to participate in the state TDB program and whether the employer does or does not participate (NJ Stat. Ann. Sec. 43:21-49). For employers that participate in a TDB program, the notice must ...

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New Jersey Disability Insurance Resources

Type Title
Checklists Disability Insurance Checklist
Policies Short-term Disability Pay
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