Who Can Receive Temporary Disability in New Jersey

New Jersey's Temporary Disability Insurance (TDI) program pays part of your wages if you cannot work because of an illness or injury that is not work-related. To receive these benefits, you must meet four conditions: you must have earned enough wages in New Jersey during a specific period, you must have been unable to work for at least seven consecutive calendar days, you must have lost wages because of that inability, and you must have filed a claim with the state.

The program does not cover injuries that happened at work — those fall under workers' compensation instead. TDI also does not cover unemployment, pregnancy-related disability (which has its own program called Family Leave Insurance), or disabilities that prevent you from ever working again (those are handled by Social Security Disability Insurance). TDI is temporary: it typically pays for up to 26 weeks in a benefit year, though some situations extend that.

You do not need to be a New Jersey resident to collect TDI, but you must have worked in New Jersey and earned wages there. Self-employed people can opt into the program, but most are not covered automatically.

Key Takeaways

  • You must have earned at least $150 in New Jersey wages during the 52 weeks before you became unable to work, with at least $100 earned in the highest-paid quarter of that period.
  • Your disability must prevent you from doing your regular job for at least seven consecutive days before TDI payments begin.
  • You must file your claim within two years of the date your disability started, though filing sooner protects your benefits.
  • TDI replaces roughly two-thirds of your average weekly wage, up to a maximum amount that changes each year.
  • You can work part-time and still receive partial TDI benefits if your reduced earnings fall below your benefit amount.

The Wage Requirements You Must Meet

New Jersey measures your work history over a 52-week period called the base year. The base year runs from the 52 weeks when ready before the week your disability began. During that entire 52 weeks, you must have earned at least $150 in New Jersey wages.

That $150 is not the only threshold. You also must have earned at least $100 during the highest-paid quarter (13-week period) within that same 52 weeks. If you earned $200 total but all of it came in one month, you would not meet the requirement. The earnings must be spread across the year and concentrated enough in one quarter to show ongoing work.

Wages count only if they were subject to New Jersey income tax withholding or if you paid self-employment tax on them. Tips, bonuses, and overtime all count. Sick pay, vacation pay, or severance paid after you stopped working do not count toward the base year requirement.

How the Seven-Day Waiting Period Works

You cannot receive TDI payments for the first seven consecutive calendar days you are unable to work. This is called the waiting period. It starts on the first day you cannot work because of your disability, not the day you file your claim.

The waiting period must be seven consecutive calendar days — weekends and holidays count. If you return to work for even one day during those seven days, the waiting period restarts. Once you have completed seven consecutive days without working, TDI payments begin on the eighth day.

Some employers provide short-term disability insurance or paid leave that covers this seven-day gap. If your employer pays you during those seven days, you still complete the waiting period, but you cannot receive both your employer's payment and TDI for the same days.

Medical Certification and Proof of Disability

When you file your TDI claim, you must provide medical evidence that you cannot work. This usually means a statement from a doctor, nurse practitioner, or physician's assistant who examined you or treated you. The medical provider must state the date your disability began and the expected duration.

The New Jersey Division of Temporary Disability Insurance will send you a form called a Physician's Statement or Healthcare Provider's Report. Your doctor completes this form and returns it directly to the state. You do not submit it yourself. If your doctor does not return the form within 30 days, the state will contact them again.

If your disability lasts longer than the doctor's initial estimate, you may need to submit updated medical evidence. The state can request recertification at any time during your claim. Failure to provide medical evidence when asked will result in your benefits being stopped.

How to File Your Claim

You must file your TDI claim with the New Jersey Division of Temporary Disability Insurance, which is part of the state Department of Labor. You can file online through the state's website, by mail, or by phone. Filing online is fastest — you can often complete it in 15 to 20 minutes if you have your employment and medical information ready.

To file, you will need your Social Security number, the date your disability began, your employer's name and address, your doctor's name and contact information, and information about any other disability benefits you are receiving. You will also need to authorize the state to contact your employer and your doctor.

The state must receive your claim within two years of the date your disability started. However, waiting longer than a few weeks can delay your first payment and may cause you to lose benefits for the weeks between when your disability began and when you filed. File as soon as you know you will be unable to work for more than seven days.

Benefit Amount and Payment Schedule

TDI replaces approximately two-thirds of your average weekly wage, calculated from the wages you earned during your base year. The state divides your total base-year earnings by 52 to find your average weekly wage, then pays roughly 66.67 percent of that amount.

There is a maximum weekly benefit amount that changes each year. The state sets this maximum based on the state's average weekly wage. For 2024, the maximum is higher than it was in 2023, but the exact amount varies. You can find the current maximum on the New Jersey Department of Labor website.

Payments are issued weekly by direct deposit or check, usually within 10 to 14 days after your claim is approved. If you are approved for 26 weeks of benefits, you will receive 26 weekly payments. If your disability ends before 26 weeks, your benefits stop.

Work and Partial Benefits

You can work part-time while receiving TDI, but your benefits will be reduced. If you earn wages during a week, the state subtracts those wages from your full TDI benefit amount. You receive the difference.

For example, if your full weekly TDI benefit is $400 and you earn $150 in wages that week, you receive $250 in TDI ($400 minus $150). If you earn more than your full benefit amount in a week, you receive no TDI for that week, but you do not lose future weeks of benefits.

You must report all wages you earn, including self-employment income, to the state. Failure to report earnings can result in overpayment, which you will be required to repay.

Frequently Asked Questions

Can I receive TDI if I am already receiving unemployment benefits?

No. You cannot receive both TDI and unemployment insurance for the same week. TDI is for people unable to work due to illness or injury; unemployment is for people who are able and willing to work but cannot find a job. If you are receiving unemployment and become disabled, you must report it and switch to TDI.

What happens if my employer does not report my wages correctly?

Contact the New Jersey Division of Temporary Disability Insurance and provide documentation of your actual wages, such as pay stubs or a letter from your employer. The state will investigate and correct the record. This can take several weeks, so keep copies of all pay records.

Can I receive TDI for a mental health condition?

Yes, if a licensed mental health provider certifies that the condition prevents you from working. The medical evidence must show that you are unable to perform your regular job duties, not straightforward that you have a diagnosis. Your doctor must provide specific information about your functional limitations.

What if I disagree with the state's decision to deny my claim?

You have the right to appeal. You must file a written appeal within 20 days of receiving the denial letter. The appeal goes to the Division of Temporary Disability Insurance, which will review your case and may hold a hearing. You can represent yourself or bring an attorney or advocate.

Does TDI count as income for tax purposes?

TDI benefits are generally not subject to federal income tax, but you should consult a tax professional about your specific situation. Some people may owe state tax on TDI depending on their total income and filing status. The state does not withhold taxes from TDI payments automatically.