What New Jersey Temporary Disability Insurance Covers

New Jersey Temporary Disability Insurance (TDI) is a state program that replaces part of your wages when you cannot work because of a non-work injury, illness, or pregnancy. It is run by the New Jersey Department of Labor and Workforce Development, not Social Security. The program pays you directly—not your employer—and the money comes from payroll deductions you and your employer both contribute.

TDI covers disabilities that last at least seven consecutive calendar days. You receive a percentage of your average weekly wage, up to a state-set maximum. The program does not cover work injuries (those go to workers' compensation) or disabilities caused by your job. It also does not cover unpaid leave, vacation time, or sick days you have already accrued.

New Jersey is one of five states with a mandatory temporary disability program. This means if you work in New Jersey, you are enrolled automatically—there is no choice to opt out. Self-employed people can choose to participate.

Key Takeaways

  • TDI replaces part of your wages when you are unable to work due to illness, injury, or pregnancy, and you must be out of work for at least seven consecutive days to receive benefits.
  • You and your employer both pay into the program through payroll deductions; the contribution rate changes yearly and is set by the state.
  • You file a claim with the New Jersey Department of Labor and Workforce Development, not with your employer, and your doctor must certify the disability.
  • Benefits typically begin on the eighth day of disability and continue for up to 26 weeks, though pregnancy-related disability may extend longer under certain circumstances.
  • TDI does not cover work-related injuries, pre-existing conditions you do not disclose, or disabilities you caused intentionally.

Who Pays Into TDI and How Much

Both you and your employer contribute to the TDI fund. Your contribution is deducted from your paycheck as a percentage of your gross wages. Your employer also pays a matching or employer-only contribution. The exact rates change each year and are announced by the New Jersey Department of Labor and Workforce Development in November for the following year.

As of recent years, the employee contribution has been approximately 0.14 percent of wages, though this figure varies. The employer contribution is separate and typically higher. If you are self-employed and choose to participate, you pay both the employee and employer portions. You can verify your current contribution rate on your pay stub or by contacting your payroll department.

These contributions are mandatory for most private-sector employees in New Jersey. Public employees, railroad workers, and certain other groups have different rules and may not participate in the state TDI program.

How to File a TDI Claim

To file a claim, you must contact the New Jersey Department of Labor and Workforce Development directly. You can file online through their website, by phone, by mail, or in person at a local office. The state provides a claim form (Form TDI-1) that you and your healthcare provider must complete together.

Your doctor must certify that you are unable to work and state the expected duration of the disability. You will need to provide your Social Security number, employer information, and details about your disability. If you are pregnant, you must provide your expected delivery date. The state will contact your employer to verify your employment and wage history.

File your claim as soon as you know you will be unable to work. The state processes claims in the order they are received. Benefits do not begin until the eighth consecutive day of disability, so filing early does not speed up payment but ensures you do not miss the important date to file.

When Benefits Start and How Long They Last

TDI benefits begin on the eighth consecutive calendar day of your disability. This means the first seven days are unpaid—you must use vacation, sick leave, or personal days if you have them, or go without pay. Some employers provide short-term disability insurance that covers this waiting period, but the state program does not.

Once benefits begin, you receive a weekly payment equal to a percentage of your average weekly wage. The percentage is set by state law and is typically around 66 percent of your average weekly wage, though it may be higher or lower depending on your circumstances. The state sets a maximum weekly benefit amount, which increases each year.

Benefits continue for up to 26 weeks in a 52-week period. For pregnancy-related disability, you may receive benefits for up to four weeks before your expected delivery date and up to six weeks after delivery (or eight weeks for a complicated delivery). If your disability extends beyond 26 weeks, you may be able to file for federal Social Security Disability Insurance (SSDI), though the two programs have different rules and requirements.

What Disqualifies You From TDI

You cannot receive TDI for a disability caused by your work. Work-related injuries and illnesses are covered by workers' compensation instead, which is a separate program. If you file for workers' compensation, you cannot also file for TDI for the same injury.

You are also disqualified if your disability results from an intentional act—your own or someone else's. If you caused the injury or illness intentionally, or if you were injured while committing a crime, TDI will deny your claim. Pre-existing conditions you did not disclose when you enrolled in the program may also disqualify you, depending on the circumstances.

If you are receiving unemployment benefits, you cannot receive TDI at the same time. You must choose one or the other. Additionally, if you are receiving paid leave from your employer—such as vacation or sick days—you are not considered unable to work and cannot receive TDI during that period.

How TDI Differs From SSDI and Other Programs

TDI and Social Security Disability Insurance (SSDI) are completely separate programs run by different agencies. TDI is temporary and covers short-term disabilities lasting weeks to months. SSDI is for long-term or permanent disabilities expected to last at least 12 months or result in death. TDI has no medical severity requirement; SSDI requires that your condition meet a strict medical standard.

TDI is based on your recent work history and wages in New Jersey. SSDI is based on your lifetime earnings record and work credits. You can receive both programs at the same time if you meet the requirements for each, though the rules about how they interact are complex. If you are receiving TDI and your disability lasts longer than 26 weeks, you should consider filing for SSDI while you are still receiving TDI payments.

New Jersey also has a Family Leave Insurance (FLI) program, which is separate from TDI. FLI provides paid leave to care for a family member or bond with a new child, while TDI covers your own disability. Some situations—such as pregnancy—may be covered by both programs, but they serve different purposes.

Appealing a Denied or Reduced TDI Claim

If the New Jersey Department of Labor and Workforce Development denies your claim or reduces your benefits, you have the right to appeal. The state will send you a written notice explaining the reason for the denial or reduction. You must file an appeal within 20 days of receiving that notice.

To appeal, submit a written request to the Department of Labor and Workforce Development. Include your claim number, a brief explanation of why you disagree with the decision, and any new medical evidence or documents that support your case. You can also request a hearing before an administrative law judge, where you can present your case in person or by phone.

During the appeal process, you may continue to receive benefits if you were receiving them before the denial, depending on the reason for the denial. If you stop receiving payments while your appeal is pending, you can request that payments resume if you win your appeal. The state will pay you back to the date your benefits were stopped.

Frequently Asked Questions

Can I receive TDI if I am working part-time or have a second job?

No. TDI requires that you be unable to work. If you are working, even part-time, you are not considered disabled and cannot receive benefits. If you return to work while receiving TDI, your benefits stop when ready. You must report any work income to the Department of Labor and Workforce Development.

What happens to my TDI if I am laid off or fired while disabled?

Your TDI benefits continue as long as you remain unable to work and have not exceeded the 26-week limit. The reason you left your job does not affect your TDI claim. However, you may also be able to file for unemployment benefits once your TDI ends, depending on the reason for the job loss.

Do I have to tell my employer I am filing for TDI?

You do not have to tell your employer yourself, but the state will contact them to verify your employment and wages. Your employer will learn about your claim when the Department of Labor and Workforce Development reaches out. You are protected from retaliation for filing a TDI claim under New Jersey law.

Can I receive TDI for mental health conditions or depression?

Yes, if a doctor certifies that you are unable to work due to a mental health condition. Your healthcare provider must document the condition and state that you cannot perform your job duties. The same rules explore as for any other disability—you must be out of work for at least seven consecutive days and provide medical certification.

What if my disability lasts longer than 26 weeks?

TDI covers up to 26 weeks in a 52-week period. If your disability continues beyond that, you should file for Social Security Disability Insurance (SSDI) while you are still receiving TDI. SSDI has a different process process and medical standard, but it provides longer-term support if your condition is severe enough to meet federal requirements.