What Temporary Disability Insurance Covers in New Jersey

Temporary Disability Insurance (TDI) in New Jersey replaces part of your wages if you cannot work due to a non-work-related illness or injury. The program is run by the New Jersey Department of Labor and Workforce Development. It pays a percentage of your regular wages for up to 26 weeks, though the exact amount depends on your recent earnings.

TDI covers situations like recovery from surgery, pregnancy and childbirth, a broken bone, or a serious illness — anything that keeps you from working but is not caused by your job. It does not cover work-related injuries (those fall under workers' compensation) or unemployment. You must be unable to work for at least seven consecutive days before TDI payments begin, though you do not receive payment for that first week.

New Jersey is one of five states that runs its own temporary disability program. The program is funded through payroll deductions from your wages — your employer withholds a small percentage, usually around 0.14% of your gross pay, up to a maximum annual contribution. Self-employed people can choose to participate and pay into the system themselves.

Key Takeaways

  • Temporary Disability Insurance in New Jersey replaces a portion of your wages for up to 26 weeks when you cannot work due to illness or injury not caused by your job.
  • You must be unable to work for at least seven consecutive days before payments begin, and you do not receive payment for that first week.
  • The program is funded through payroll deductions from your wages, and your employer is required to withhold contributions automatically if you are covered.
  • You file a claim with the New Jersey Department of Labor by submitting a form and medical certification from your doctor within 30 days of your disability start date.
  • Payments are typically issued within two to three weeks after the department receives and approves your complete claim.

Who Is Covered by New Jersey TDI

Most private-sector employees in New Jersey are automatically covered by TDI if they work for an employer with one or more employees. Coverage is mandatory — your employer must deduct contributions from your pay unless you fall into a specific exemption. Public employees, railroad workers, and some other groups have their own disability programs instead.

Self-employed people are not automatically covered but can choose to participate. If you are self-employed and want coverage, you must register with the New Jersey Department of Labor and pay contributions on your net self-employment income. Coverage takes effect 30 days after you register.

If you work part-time, you are still covered as long as your employer has at least one employee. There is no minimum number of hours per week required. Temporary or seasonal workers are covered during the time they are employed.

How to File a Claim for Temporary Disability

You file a TDI claim by submitting Form TDI-1 (Employee Claim for Temporary Disability Insurance Benefits) to the New Jersey Department of Labor. You can file online through the department's website, by mail, or in person at a local office. You must file within 30 days of the date your disability began, though filing sooner is better because the department processes claims in the order they are received.

Along with the claim form, you need a medical certification from your doctor. The form your doctor completes is Form TDI-4 (Physician's Certification of Disability). Your doctor must state the date your disability began, the date you are expected to return to work, and confirm that you are unable to work. The doctor does not need to disclose your diagnosis — only that you cannot work.

You also need to provide your Social Security number, your employer's name and address, and information about your recent wages. If you have already received any other disability payments (such as workers' compensation or unemployment benefits), you must report those as well, because TDI may be reduced if you are receiving other benefits at the same time.

Once the department receives your complete claim, it typically takes two to three weeks to process and issue your first payment. Payments are deposited directly into your bank account or issued by check, depending on what you choose when you file.

How Much TDI Pays and for How Long

New Jersey TDI replaces two-thirds of your average weekly wage, up to a maximum amount that changes each year. For 2024, the maximum weekly benefit is $901 (this amount is adjusted annually). Your actual payment is calculated based on your wages during a specific period before your claim — typically the 26 weeks when ready before your disability began.

You can receive TDI for up to 26 weeks in a 52-week period. If your disability lasts longer than 26 weeks, you do not receive additional TDI payments, though you may be able to file for other programs like SSDI (Social Security Disability Insurance) if your condition is expected to last longer than one year.

The first seven days of your disability are not paid — this is called the waiting period. If your disability lasts at least 14 consecutive days, you receive payment for the eighth day onward. If your disability lasts fewer than 14 days, you receive no TDI payment at all.

What Happens If Your Claim Is Denied

If the New Jersey Department of Labor denies your claim, you receive a written notice explaining the reason. Common reasons for denial include: the department determined you are able to work, your medical certification was incomplete or did not support the claim, you did not file within 30 days, or you do not meet the coverage requirements.

You have the right to appeal a denial. You must file a written appeal within 20 days of receiving the denial notice. Send your appeal to the address listed on the denial letter. Include any additional medical evidence or documentation that supports your claim. The department will schedule a hearing where you can present your case — this may be done by phone or in person.

At the hearing, you can bring medical records, your doctor, or a representative to speak on your behalf. An administrative law judge will review the evidence and issue a decision. If you disagree with that decision, you can appeal further to the New Jersey Appellate Division, though this requires legal representation in most cases.

Reporting Changes While Receiving TDI

While you are receiving TDI, you must report certain changes to the New Jersey Department of Labor. If you return to work — even part-time — you must report your return date and your new earnings. TDI payments are reduced if you earn income while receiving benefits, and they stop once you are able to work full-time.

If your doctor says you can return to work on a specific date, the department will stop your payments on that date. If you return to work before that date, notify the department when ready. If you continue to be unable to work past the date your doctor originally stated, you can request an extension by submitting an updated medical certification.

You must also report if you receive any other disability or wage-replacement benefits, such as workers' compensation, unemployment insurance, or a settlement from a lawsuit. TDI may be reduced or suspended if you are receiving duplicate benefits for the same period of disability.

Temporary Disability Insurance Versus Other Programs

New Jersey TDI is different from workers' compensation, which covers injuries or illnesses that happen at work or are caused by your job. If your disability is work-related, you file a workers' compensation claim with your employer's insurance carrier, not with the Department of Labor. Workers' compensation typically pays a higher percentage of your wages than TDI.

TDI is also different from SSDI (Social Security Disability Insurance), which is a federal program for people whose disabilities are expected to last at least 12 months or result in death. SSDI has a five-month waiting period and pays based on your lifetime Social Security earnings record, not your recent wages. You can receive both TDI and SSDI at the same time, though SSDI will be reduced by the amount of TDI you receive.

If your disability lasts longer than 26 weeks, TDI ends but you may be able to file for SSDI. The Social Security Administration can help you understand whether your condition meets their definition of disability and what the process process looks like.

Frequently Asked Questions

Can I receive TDI if I am pregnant?

Yes. Pregnancy and childbirth are covered under New Jersey TDI. You can file a claim starting four weeks before your expected delivery date. Your doctor must certify that you are unable to work due to pregnancy. Payments typically continue for up to six weeks after delivery, though your doctor may certify a longer period if there are complications.

What if my employer says I am not covered by TDI?

Most private-sector employees are covered automatically. If your employer claims you are not covered, contact the New Jersey Department of Labor to verify your coverage status. You can call the TDI hotline at 609-292-7060 or file a coverage inquiry online. If your employer is not withholding TDI contributions and you are supposed to be covered, the department can investigate and require your employer to pay back contributions.

Do I have to tell my employer I filed for TDI?

You do not have to tell your employer, but it is often a good idea to notify them that you will be out on disability so they can plan for your absence. Your employer cannot retaliate against you for filing a TDI claim. If you believe your employer has punished you for filing, you can file a retaliation complaint with the New Jersey Department of Labor.

What if I return to work part-time while receiving TDI?

You can work part-time and still receive TDI, but your benefit payment is reduced based on your earnings. The reduction is calculated so that your TDI payment plus your part-time wages do not exceed your full regular wage. Report your part-time work and earnings to the department so they can adjust your payments correctly.

How long does it take to get my first TDI payment?

After the department receives your complete claim (including the medical certification from your doctor), it typically takes two to three weeks to process and issue your first payment. Payments are usually deposited into your bank account within one to two business days after the department releases them. If you chose to receive a check instead, allow additional time for mailing.