Absences are an unavoidable part of any work life. For some reason or another, you may not be able to work due to unexpected circumstances. New Jersey’s Temporary Disability Insurance (TDI) cushions workers who cannot perform their jobs due to unexpected illness, injury, or pregnancy.
TDI vs. workers’ compensation
Both programs provide coverage for lost wages, but they have a key difference. Workers’ compensation covers injury or illness that occur on the job, while TDI covers off-job occurrences. Temporary disability insurance abides by different rules for qualification and other aspects.
Either the State of New Jersey or a state-approved private plan administers temporary disability payouts. In contrast, both you and covered employers fund TDI, with your portion coming out of payroll deductions.
The application process
New Jersey provides up to 26 weeks of income replacement for temporary disability. TDI provides 85% of your average weekly wage up to a set state maximum (which adjusts yearly). To get your temporary disability benefits, you must go through an application process.
In New Jersey, where you file depends on whether you have a state or private plan. If you have a state plan, you can file directly through the government website. For a private plan, you must apply through your employer’s insurance carrier and follow their application procedures.
You must file within 30 days of the start of your disability to receive benefits. Filing after the 30-day deadline can result in denials or a reduction of benefits unless you can show a valid reason for your delay.
Eligibility and the waiting period
New Jersey has a built-in mandatory “waiting week” for TDI. The first seven days are typically not paid unless your unpaid leave reaches 22 days or more. Then, you will receive retroactive payment for the first seven days.
Check if you are eligible to receive temporary disability payouts. You must fulfill one of two earnings criteria to receive TDI. To receive your benefits, you must work 20 calendar weeks in NJ covered employment and meet the following 2026 thresholds:
- Made a minimum of $310 per week
- Earned a minimum of $15,500 in the base year
Covered employees may still have their claim denied, like any type of insurance. You will receive a notice form explaining the reason for the denial. Fortunately, you can appeal by filing online or in writing within 21 days of the mailing date on the notice. Consider legal assistance if you choose to appeal a decision.