Pub. 14 2015-2016 Issue 1

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 I S S U E N O . 2 , 2 0 1 5 10 new jersey auto retailer What Employers Need to Know N ew Jersey Temporary Disability Benefits law, or NJ TDB, requires a covered New Jersey employee be paid a cash benefit when they are unable to work because of an off-the-job accident or sickness. New Jersey is one of five (5) states to mandate disability coverage. If you are a business owner in the State of New Jersey, you most likely have had questions from your employees about NJ TDB. Am I covered for maternity? How long are benefits paid? Howmuch is my weekly benefit? Besides basic plan design and eligibility questions from employ- ees, many business owners are unaware that the State of New Jersey also allows them the ability to purchase NJ TDB from the private insurance market. Purchasing NJ TDB from a private insurance carrier may provide the business owner and covered New Jersey employees with more timely claims service, better overall access to claim reports and possible employer savings. NJ TDB Plan Design and Eligibility NJ TDB is a short term disability plan that pays a percentage of the covered employee’s weekly income. The weekly benefit changes on January 1 of each new year. For January 1, 2015 the weekly maximum benefit is 66 2/3% of all weekly earned income up to a weekly maximum amount of $604. This benefit is paid after the employee has been totally disabled and unable to work for seven (7) calendar days. Weekly benefits could be paid for as long as 26 weeks. Maternity is considered a covered disability. Currently NJ TDB only covers total disability from a covered employee’s current occupation. However, Governor Christie is currently reviewing an amendment to the law which would include paying a benefit to those employees that could return to work on a partial disability basis. Unlike an Employer Sponsored Medical Plan, where eligibil- ity is typically based on full time employment, NJ TDB often covers employees that are part-time and even seasonal workers. NJ Temporary Disability Benefits Law: BY JAMES NELLIGAN