New Jersey Temporary Disability Benefits

Temporary Disability Plan

New Jersey employers are mandated by the state to provide short-term disability benefits for off-the-job injuries, illnesses, or other medical conditions. This may include:

• Pregnancy/childbirth.
• Off-the-job accident event (i.e. broken leg in skiing accident).
• Extended illness (i.e. heart attack recovery).
• Flu.

Employers are automatically enrolled into a state plan for this coverage. However, many companies choose to “opt out” of the state plan and work with a private insurance company, like Arch. This can often result in a potential savings for the employer and superior service for employees. For example, even if coverage is already in place though another private carrier, there still could be considerable savings by switching to Arch.

Effective Jan. 1, 2024, benefits are 85% of the average weekly wage to a maximum of $1,055 per week for 26 weeks after the seven-day waiting period. Enrichment options are also available.

On average, Arch Insurance processes claims in under five days, which is significantly faster than the New Jersey state program, based on the Temporary Disability Insurance Workload in 2020 Summary Report.