What New Jersey Temporary Disability Covers

New Jersey Temporary Disability Insurance (TDI) is a state program that replaces part of your wages if you cannot work because of a non-work injury, illness, or pregnancy. It is not the same as workers' compensation (which covers job injuries) or Social Security Disability Insurance (which is federal and long-term). TDI is designed to bridge the gap when you are temporarily unable to work but expect to return.

The program pays a percentage of your regular weekly wages for up to 26 weeks in a benefit year. The exact amount depends on your average weekly wage and the state's current maximum weekly benefit amount, which changes each year. New Jersey funds TDI through payroll deductions from employees' paychecks — your employer withholds a small percentage of your gross wages.

You can receive TDI benefits for pregnancy-related conditions, including the period before and after childbirth. You can also receive benefits while on family leave under the New Jersey Family Leave Act, though the two programs have different rules about how long you can collect.

Key Takeaways

  • New Jersey TDI replaces part of your wages for up to 26 weeks when you cannot work due to illness, injury, or pregnancy — not work-related injuries.
  • Your employer deducts TDI contributions from your paycheck automatically if you work in New Jersey, so you are covered without having to sign up separately.
  • You must file a claim with the New Jersey Department of Labor and Workforce Development, and your doctor must certify that you cannot work.
  • The state pays a percentage of your average weekly wage, with a maximum amount that changes yearly; the exact benefit depends on your earnings history.
  • Benefits typically begin after a seven-day waiting period, though some situations waive this delay.

Who Is Covered by New Jersey TDI

Most employees in New Jersey are covered automatically if their employer has one or more workers. Self-employed people can choose to participate in TDI, but they are not required to. If you are self-employed and want coverage, you must register with the state and pay both the employee and employer contribution rates.

You are not covered if you work for the federal government, the state of New Jersey, or certain local government agencies — those employers have their own disability programs. Railroad employees covered by federal railroad retirement are also excluded from state TDI.

Domestic workers and agricultural workers have different rules. If you employ a household worker, you may be required to pay into TDI on their behalf depending on how much you pay them. Check with the Department of Labor if you are unsure whether a specific job falls under TDI coverage.

How to File a Claim

To file a TDI claim, contact the New Jersey Department of Labor and Workforce Development. You can file online through their website, by phone, or by mail. You will need your Social Security number, employer information, and the date your disability began. Have your recent pay stubs available so the state can verify your earnings.

Your healthcare provider must complete a medical certification form stating that you cannot work and the expected duration of your disability. The state will send you this form, or your doctor can request it directly. Without medical certification, the state cannot process your claim.

File your claim as soon as you know you cannot work. The state begins paying benefits after a seven-day waiting period, but that clock does not start until your claim is received and approved. If you wait weeks to file, you lose those weeks of potential benefits — the state does not backdate payments beyond the filing date.

What the State Pays and When

New Jersey TDI replaces two-thirds of your average weekly wage, up to a maximum amount set by the state each year. For 2024, the maximum weekly benefit is $993, though this amount increases annually. If you earned $600 per week, you would receive about $400 per week; if you earned $1,500 per week, you would receive the state maximum of $993.

The state calculates your average weekly wage based on your earnings in the highest-paid quarter of the year before your disability began. If you have not worked a full year, the calculation uses the weeks you did work. Bonuses, commissions, and overtime count toward your average if they are part of your regular pay.

Payments are issued weekly by direct deposit or check, depending on how you set up your claim. The first payment arrives after the seven-day waiting period plus processing time, which is usually one to two weeks. If your disability lasts longer than expected, you can request a medical recertification to extend your benefits up to the 26-week maximum.

The Seven-Day Waiting Period and Exceptions

New Jersey requires a seven-day waiting period before benefits begin. This means you do not receive payment for the first week you are unable to work. However, the waiting period is waived if your disability lasts longer than two weeks — in that case, you are paid for the first week as well.

The waiting period also does not explore if you are hospitalized overnight or if your disability is related to pregnancy. If you are admitted to a hospital, benefits begin when ready. If you are pregnant and cannot work, the waiting period is waived from the start of your claim.

Keep records of any days you cannot work, even if they fall within the waiting period. If your claim is approved and your disability extends beyond two weeks, the state will pay you retroactively for that first week.

How TDI Interacts with Other Income and Benefits

TDI benefits are reduced if you receive workers' compensation, unemployment insurance, or certain other state or federal disability payments at the same time. You cannot collect the full amount of both programs — the state coordinates benefits so you do not receive more than your regular wage.

If you receive a settlement or lump-sum payment from a workers' compensation claim, it does not reduce your TDI benefits. However, ongoing workers' compensation payments do reduce TDI dollar-for-dollar.

TDI benefits are taxable income for federal tax purposes. The state does not withhold taxes automatically, so you may owe taxes on your benefits when you file your return. Keep records of all TDI payments you receive during the year.

Returning to Work and Benefit Limits

You can work part-time while receiving TDI, but your benefits are reduced by the amount you earn. If you earn $200 in a week and your full TDI benefit is $600, you receive $400 that week. Report all earnings to the state when you file your weekly claim.

TDI benefits last up to 26 weeks in a benefit year, which runs from July 1 to June 30. If you exhaust your 26 weeks and still cannot work, you may be able to file a new claim in the next benefit year. However, you must have worked and paid into TDI during the new year to be covered.

Once you return to full-time work, notify the state when ready. Continuing to collect benefits after you have returned to work is considered fraud and can result in overpayment demands and penalties.

Frequently Asked Questions

Do I have to pay into TDI if I work in New Jersey?

If you are a regular employee, your employer deducts TDI contributions from your paycheck automatically — you do not have a choice. Self-employed people can choose to participate but are not required to. Federal and state government employees are not covered by TDI.

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

You can receive partial TDI benefits while working part-time. The state reduces your benefit by the amount you earn each week. Report your part-time earnings when you file your weekly claim so the state can calculate the correct payment.

Can I receive TDI while on family leave?

Yes, but the rules are complex. New Jersey Family Leave Act provides job protection for up to 12 weeks unpaid; TDI can replace some of that lost income. However, you must be unable to work due to a covered reason — caring for a family member alone does not may have access to for TDI, only for family leave protection.

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

You have the right to appeal. File an appeal with the New Jersey Department of Labor within 20 days of the denial letter. You can request a hearing where you can present evidence and testimony. Bring your medical records and any documentation of your disability.

How long does it take to receive my first payment?

After your claim is approved, the seven-day waiting period begins. Once that ends, the state processes and issues your payment, which typically arrives within one to two weeks. The entire process from filing to first payment usually takes three to four weeks.