NJ Short-Term Disability: Eligibility, Benefits, and How to File

New Jersey short-term disability, formally called Temporary Disability Insurance (TDI), pays cash benefits to workers who can’t work because of a non-job-related illness, injury, or pregnancy. To collect, you need enough recent New Jersey earnings, a licensed provider willing to certify your condition, and a claim filed within 30 days of your first day out of work. The 2026 benefit is 85% of your average weekly wage, capped at $1,119 per week, for up to 26 weeks.

Who Qualifies

Two things determine eligibility: your recent earnings in New Jersey covered employment, and a medical condition that keeps you from working. The condition has to be unrelated to your job. Work injuries go through workers’ compensation instead.

For claims filed in 2026, you need at least 20 weeks of work earning $310 or more per week. If you fall short of 20 qualifying weeks, you can still qualify by earning a combined total of at least $15,500 during your base year.¹ Your base year is the first four of the last five completed calendar quarters before your disability began. If those earnings don’t get you there, New Jersey lets you use an alternative base year — the last four completed quarters before your disability — which can help if your most recent earnings were higher.²

The program covers physical and mental health conditions equally. Depression, anxiety, or another mental health condition that prevents you from working qualifies the same way a broken bone or surgery recovery would.³ You must remain under a licensed healthcare provider’s care throughout the benefit period.

Who Isn’t Covered

Independent contractors, sole proprietors, and members or partners of LLCs are not covered.⁴ Neither is a sole proprietor’s spouse, parent, or child under 18. Federal employees and railroad workers are excluded because they fall under separate federal programs.

State Plan or Private Plan?

Not every New Jersey employer uses the state-run plan. Some carry approved private disability plans through commercial insurers. Ask HR which one covers you before you start an application. If your employer uses a private plan, you file with that carrier, not with the state.³ Filing with the state by mistake just gets you a notice redirecting you and delays your payment. Everything below applies to the state plan.

What You’ll Receive and For How Long

Your weekly benefit is 85% of your average weekly wage, capped at a state-set maximum. For 2026, the cap is $1,119 per week.¹ Payments continue until you recover and return to work or hit the maximum of 26 weeks (182 days), whichever comes first.³

Every claim has a seven-day unpaid waiting period. Benefits begin on the eighth day of disability. If your disability lasts three or more consecutive weeks, the state pays you retroactively for that first week.⁵ Shorter disabilities leave those seven days unpaid.

Payments come on a prepaid debit card mailed to your address.⁶ Direct deposit isn’t offered for standard TDI claims. If you return to work or your condition improves before the 26-week ceiling, report it right away. Benefits you weren’t entitled to become an overpayment you’ll have to repay.

How to File

Gather your paperwork before you start. You’ll need:

Your Social Security number, date of birth, and contact information.
The exact date you stopped working because of your condition.
The name, address, and phone number of the healthcare provider who treated you within 10 days of your first day out of work.³
Dates and facility names for any hospitalization or emergency care.
Names, addresses, and dates worked for every employer in the last 18 months.³
Your most recent employer’s New Jersey Employer Identification Number, from your W-2 (HR can give it to you).

Your healthcare provider also has to complete a medical certification with your diagnosis and estimated recovery time. If you file online, the system generates instructions to hand to your provider so they can complete their section electronically. The state does not contact your provider for you.³

The fastest way to file is online through the MyLeaveBenefits portal on the Department of Labor and Workforce Development website. If you file online, don’t also mail or fax a paper copy. Duplicates slow processing.³ For paper filing, complete Form DS-1 and send it to the Division of Temporary Disability Insurance, P.O. Box 387, Trenton, NJ 08625-0387, or fax it to 609-984-4138.²

File within 30 days of your first day of disability. Late applications require a written explanation, and benefits may be reduced or denied if the state doesn’t find your reason sufficient.² Don’t file before your last day of work either. Premature claims also stall processing.

After You Apply

The Department of Labor verifies your earnings history, contacts your employer, and reviews your provider’s medical certification. Expect several weeks for a decision. Incomplete information is the most common cause of delay, so answer any request for documents quickly.

You can check status through the MyLeaveBenefits portal at any time. Approved claims update online. Denied claims come with a letter explaining the specific reasons. Keep that letter. It has the information you need to appeal.

Taxes on TDI Benefits

New Jersey TDI benefits are exempt from state income tax.⁷ They are taxable on your federal return. The IRS treats state plan TDI payments as third-party sick pay subject to federal income tax and Social Security (FICA) taxes.⁸

To have federal taxes withheld from your payments, attach IRS Form W-4S (Request for Federal Income Tax Withholding From Sick Pay) to your claim. Otherwise you’ll owe the taxes at filing time.

TDI Doesn’t Protect Your Job

Getting approved for disability benefits and having the right to keep your job are two different things. TDI is a cash benefit. It replaces some of your lost income but does not require your employer to hold your position open.⁹

Job protection, if you have it, comes from separate laws running alongside your TDI claim:

The federal Family and Medical Leave Act (FMLA) provides up to 12 weeks of job-protected leave in a 12-month period for your own serious health condition, pregnancy, or childbirth recovery. You must work for a covered employer (generally 50 or more employees) and meet the eligibility rules.
The New Jersey Family Leave Act (NJFLA) provides up to 12 weeks of job-protected leave in a 24-month period to care for a family member or bond with a new child.⁹

Your employer cannot retaliate against you for applying for or receiving TDI. If you believe you were fired or punished for filing, you can take legal action. Retaliation protection is not the same as a guaranteed right to return to your exact job. Without FMLA or NJFLA coverage, your employer may legally fill your position while you’re out.

Pregnancy Claims and the Move to Family Leave Insurance

For pregnancy-related disability, the typical covered period is about four weeks before your expected delivery date and six to eight weeks after: six weeks for a vaginal delivery, eight for a cesarean section.¹⁰ File once you’ve stopped working and your provider certifies you’re unable to work because of the pregnancy. The 30-day filing window still applies.² Pre-delivery weeks can’t be banked and used later; they’re available only before childbirth.

After your TDI claim ends, New Jersey’s Family Leave Insurance program covers up to 12 continuous weeks of bonding time with your newborn. The state mails you a Form FL-2 with instructions to apply online. If you collected state TDI for pregnancy and transition straight into bonding leave, you’ve already met the earnings requirement and don’t have to re-qualify.¹¹ A typical pregnancy claim covers roughly four weeks pre-delivery, six to eight weeks post-delivery recovery under TDI, and then up to 12 weeks of bonding under FLI.¹⁰

Appealing a Denial

You have 21 calendar days from the date the denial letter is mailed to file an appeal.¹² You can appeal online or submit a written statement by mail or fax to the same address and fax number used for initial claims. A written appeal must include your name, Social Security number, address, and signature. Miss the 21-day deadline and you can still submit, but you’ll have to explain the delay.

If the appeal goes to the tribunal, you’ll get a notice to register for a telephone hearing. Register no later than 3 p.m. on the business day before your hearing. Missing registration typically forfeits the hearing.¹² The most common denial reasons are insufficient earnings history, missing medical certification, and late filing. Denials over documentation often get resolved by fixing the gap and resubmitting supporting evidence with the appeal.

If You Become Disabled After Losing Your Job

You may still qualify through the Disability During Unemployment program if your disability begins more than 14 days after your last day of covered employment.¹³ If you have a current unemployment claim, your DDU weekly rate generally matches your unemployment rate. You can’t collect both at once. When DDU begins, unemployment stops.

1
Department of Labor & Workforce Development. NJ Department of Labor and Workforce Development Announces New Benefit Rates for 2026
2
Division of Temporary Disability and Family Leave Insurance. FAQ: Temporary Disability Insurance
3
Division of Temporary Disability and Family Leave Insurance. When You’re Sick, Injured, or Post-Surgery
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Division of Temporary Disability and Family Leave Insurance. Unique Employment: Am I Covered for Benefits?
5
Division of Temporary Disability and Family Leave Insurance. The Waiting Week for Temporary Disability, Explained
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Division of Temporary Disability and Family Leave Insurance. The Debit Card
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NJ Division of Taxation. Exempt (Nontaxable) Income
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NJ Division of Temporary Disability Insurance. Temporary Disability Insurance Program Information
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Division of Temporary Disability and Family Leave Insurance. Job Protection Information
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Division of Temporary Disability and Family Leave Insurance. Maternity Coverage Timeline Tool
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Division of Temporary Disability and Family Leave Insurance. Family Leave Insurance
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Division of Temporary Disability and Family Leave Insurance. Appealing a Decision
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Division of Temporary Disability and Family Leave Insurance. Disability During Unemployment