What New Jersey's Temporary Disability Insurance Covers

New Jersey's Temporary Disability Insurance (TDI) program replaces part of your wages if you cannot work because of a non-work-related injury, illness, or pregnancy. The program is run by the New Jersey Department of Labor and Workforce Development. It pays you directly—not your employer—for up to 26 weeks in a benefit year, though the exact length depends on your situation.

TDI is not the same as workers' compensation, which covers injuries that happen at work. TDI covers everything else: surgery recovery, a broken leg from a fall at home, cancer treatment, pregnancy and childbirth, or a serious illness. You do not have to prove the condition is permanent. You only have to show you cannot work right now and that a doctor confirms it.

The program is funded by a payroll tax. Your employer withholds a small percentage from your paycheck—currently 0.28% of gross wages, up to a maximum annual contribution. Self-employed people can choose to participate and pay into the system themselves.

Key Takeaways

  • New Jersey TDI replaces roughly 66% of your average weekly wage, up to a state maximum that changes each year, for up to 26 weeks if you cannot work due to illness, injury, or pregnancy.
  • You must have worked in New Jersey for at least 20 weeks in the past 52 weeks and earned at least $150 per week to be covered, though most employees automatically meet these requirements.
  • Your doctor must certify that you cannot work, and you file your claim with the New Jersey Department of Labor, not with your employer.
  • Payments usually begin after a seven-day waiting period, and the state processes most claims within two to three weeks of receiving all required documents.
  • TDI does not affect your job—your employer cannot fire you for taking disability leave, though you may need to use accrued paid time off first depending on your company policy.

Who Is Covered Under New Jersey TDI

Most employees in New Jersey are automatically covered by TDI. You are covered if you work for an employer with one or more employees and your employer has not obtained a private disability insurance plan that meets state standards. Some employers do carry private plans instead; if yours does, you are still covered but you file claims with the private insurer, not the state.

To receive benefits, you must meet two earnings requirements. You must have worked in New Jersey for at least 20 weeks in the 52 weeks before your claim, and you must have earned at least $150 per week during that time. Most full-time employees meet both requirements easily. Part-time workers and those who started recently may not.

Self-employed people, independent contractors, and gig workers are not automatically covered. You can choose to participate in the TDI program if you want coverage, but you must register and pay the full employee and employer contribution yourself. The state has a separate registration process for voluntary participants.

How Much TDI Pays and for How Long

New Jersey TDI replaces approximately 66% of your average weekly wage. The state sets a maximum weekly benefit amount each year; for 2024, the maximum is $993 per week, though this figure changes annually. If your average weekly wage is very low, you may receive less than 66%. If your average weekly wage is very high, you receive the state maximum, not the full 66%.

The state calculates your average weekly wage using the 20 weeks you earned the most money in the 52 weeks before your claim began. This means if you had a raise or worked overtime recently, that period counts toward your benefit amount.

You can receive benefits for up to 26 weeks in a benefit year, which runs from July 1 to June 30. However, the actual length of your payments depends on how long your doctor certifies you cannot work. If you recover in four weeks, you receive four weeks of payments. If your condition lasts longer, you can receive up to the 26-week maximum. After 26 weeks, benefits stop unless you have a new condition or a new benefit year begins.

How to File a Claim

You file your TDI claim with the New Jersey Department of Labor, not with your employer. You can file online through the state's website, by mail, or by phone. Online filing is fastest and allows you to upload documents directly.

To file, you need your Social Security number, your employer's name and address, your job title, the date you stopped working, and the reason you cannot work. You also need a completed medical certification form signed by your doctor. The form is called the "Physician's Statement" and is available on the Department of Labor website. Your doctor must state that you cannot work and estimate how long the condition will prevent you from working.

After you file, the state sends you a notice confirming receipt. Processing usually takes two to three weeks if all documents are complete. If the state needs more information, it will contact you. A seven-day waiting period applies before payments begin, meaning your first check covers the week after that waiting period ends.

When Payments Start and How You Receive Them

Payments begin after a seven-day waiting period from the date your disability started, not from the date you filed your claim. This means if you stopped working on a Monday, the waiting period runs through the following Sunday, and your first payment covers the week after that.

The state pays benefits by direct deposit to your bank account or by debit card, depending on which method you choose when you file. Payments are made weekly. You do not have to repay the seven-day waiting period if your disability lasts longer than that; it straightforward does not count toward your benefits.

If you return to work before your 26 weeks are up, you must report it to the state when ready. Continuing to collect TDI while working is fraud and can result in overpayment demands and penalties. However, if you return to work part-time and earn less than your full TDI benefit, you may be able to receive a partial benefit for the difference.

How TDI Interacts with Other Programs and Your Job

TDI does not affect your Social Security benefits, Medicare, or Medicaid. It is a temporary wage replacement program, not a disability information. You do not have to be found disabled by Social Security to receive TDI, and receiving TDI does not count toward SSDI may be able to access or work history.

Your employer cannot fire you, demote you, or reduce your hours because you take TDI leave. However, your employer can require you to use accrued paid time off—vacation days, sick days, or personal days—before TDI payments begin. Some employers require you to use PTO concurrently with TDI, meaning you receive both at the same time. Check your employee handbook or ask your HR department about your company's policy.

If you have a private disability insurance plan through your employer, that plan may coordinate with TDI. Some plans pay you the difference between what TDI pays and what the private plan would pay. Others do not allow you to collect both. Review your plan documents or contact your benefits administrator to understand how coordination works.

What Happens If Your Claim Is Denied

The state may deny your claim if you do not meet the earnings requirements, if your doctor does not certify that you cannot work, or if you do not provide required documents. The most common reason for denial is incomplete medical certification—the doctor's form must clearly state that you cannot work and for how long.

If your claim is denied, the state sends you a written notice explaining the reason. You have 20 days from the date of that notice to file an appeal. You can appeal by mail or online through the Department of Labor website. An appeal hearing is held before an administrative law judge, and you can present evidence or have someone represent you.

If you disagree with the appeal decision, you can request further review by the Commissioner of Labor. This process takes additional weeks or months. During the appeal, you do not receive payments unless the appeal is successful, so it is important to file your appeal promptly and provide all requested documentation.

Frequently Asked Questions

Can I receive TDI if I am already on unpaid leave from my job?

Yes. TDI is separate from your employer's leave policy. If you are on unpaid leave and meet the medical and earnings requirements, you can file for TDI. However, if your employer requires you to use paid time off before taking unpaid leave, you may have to exhaust that first, depending on your company's policy.

What if my doctor says I can work part-time but not full-time?

You may be able to receive partial TDI benefits. If you work part-time and earn less than your full weekly TDI benefit, the state pays you the difference. You must report your part-time earnings to the state each week. If you earn more than your benefit amount, you receive nothing that week.

Does TDI count toward my SSDI work history?

No. TDI is a temporary wage replacement program and does not count as work for Social Security purposes. If you are also pursuing SSDI, receiving TDI does not help or hurt your case. However, if you return to work after TDI ends, that work does count toward SSDI may be able to access.

Can my employer see my medical information when I file for TDI?

No. You file your claim directly with the state, and your medical certification goes to the Department of Labor, not to your employer. Your employer is notified only that you have filed for TDI, not the reason or details of your condition. Your doctor's information remains confidential.

What if I am still unable to work after 26 weeks?

TDI benefits end after 26 weeks in a benefit year. If you remain unable to work, you may be able to file for SSDI through Social Security if your condition is expected to last at least 12 months or result in death. You can also explore other programs like workers' compensation if your condition is work-related, or state vocational rehabilitation if you may be able to return to work with retraining.