Pub. 12 2013-2014 Issue 2

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 27 new jersey auto retailer w w w . n j c a r . o r g The New Jersey Temporary Disability Benefits (TDB) Law is a State-mandated Short Term Disability plan that provides a benefit of 66 2/3% of the average weekly salary to a maximum of $584 per week for 2013 to eligible New Jersey employees who are unable to work, due to a non-occupational illness or injury. NewJerseyallows employers toprivatize their TDB coverage, giving employers a choice of offering coverage through the State plan or with a private insurance carrier. In general, all employers who are covered under Unemployment must also offer TDB to their employees. An exception to this rule is certain government entities. In most cases, employerswhohave at least one employee and paywages of $1,000ormore per calendar year are subject to TDB. In order to be eligible for TDB benefits, an employeemust havehadat least 20baseweeks of covered employment, OR earned at least $7,300 in covered employment during the 52 week period immediately preceding theweek in which the disability began. A base week is a calendarweek in the base year duringwhich disability  continued on page 29 New Jersey State Temporary Disability Benefits: How It Works And How It Affects Dealers And Their Employees By James Nelligan the employee earned $145 or more in cov- ered earnings (this equates to 20 times the State minimum wage). Employees do not have to live inNewJersey inorder to receive TDB. Where they live has no bearing on whether theycan receiveTDBbenefits. The only requirement is that an employeemust work for aNewJersey covered employer in order to be eligible for TDB benefits. Moving From The State Plan To A Private Plan Brings Several Advantages Private insurers offer several key advan- tages over the State plan including: • Competitive rates • Dedicated and highly professional staff focused on timely and accurate claim payments, which can be up to 50% faster than the State turnaround times. • Telephonic and online claims processing available through certain carriers. • Easy to do business with, guiding you through the TDB process every step of the way. • Plan enhancements, such as highermaxi- mumbenefits, longer durations or shorter elimination periods can be considered. • Superior customer service.