Temporary Disability Insurance in New Jersey: What You Should Know
Are you a business owner mandated to provide temporary disability insurance in New Jersey to your employees?
Most New Jersey business owners are. As a general rule, if you pay unemployment insurance for your workers, you must also furnish them with temporary disability insurance. This also applies to employees who work in New Jersey but reside in another state.
You Have Choices in Temporary Disability Insurance in New Jersey
To stay in compliance with the law, employers can either opt for the State Plan or buy a private temporary disability benefits policy in New Jersey from an authorized insurance carrier. Private plans are usually the better options – yet, only 2% of New Jersey business owners have made the switch.
Why? Most people just don’t know how easy it is to save money, get first-class, white-glove service, and enjoy a more flexible benefits plan with privatized TDB.
In 2019, the state of New Jersey waived the requirement to gain employees’ consent for TDB, making the process to privatize your disability coverage even easier.
Advantages of Privatizing Temporary Disability Insurance in New Jersey
Privatizing your temporary disability insurance in NJ provides a host of additional advantages you may not get with a state plan, including:
- Cost savings of up to 15 to 20% or more
- Personalized service
- Coverage levels that exceed the state minimum
- The option to bundle ancillary benefits with your temporary disability insurance in NJ
- Your choice of top-rated, state-approved carriers
How the Changes in Temporary Disability Insurance in New Jersey Affect Employers
Employers should be aware of several aspects of the law change that makes it easier than ever to obtain private TDB coverage.
No Need to Get Employee Consent
Getting employee consent (soliciting signatures from 50% + 1 employees) was a major barrier for employers who didn’t want to opt for the State Plan. Since the law has now changed, employers can shop for the best private disability plans in New Jersey without having to worry about getting employee consent.
Enjoy Better Benefits
Employers can now shop for private TDI plans in the open market and enjoy better benefits. You can realize significant savings, nearly up to 20% depending on the plan. You can pass on the savings to your employees, reducing their financial burden, helping them keep more money in their paychecks, and improving employee satisfaction and retention.
Better benefits can also help you attract top talent to your firm. In a GlassDoor survey, 57% of people interviewed said benefits and perks are top on their list when they consider accepting a job offer.
A Wide Range of Options
You have a choice in carriers, as well as coverage levels, waiting periods, and even the form of payment. With the state, anyone making a claim has a 30-day waiting period before benefits kick in and receives their disability income in the form of a debit card, with no other options for payment.
No Need to Contribute to State Disability Benefits Fund
Covered employers with private plans, as well as their workers, are relieved of contributions to the State Disability Benefits Fund.
- All private plans are approved and monitored by the Division of Temporary Disability Insurance, Private Plan Compliance Section.
- Employers and workers are relieved of contributions as long as the coverage is continued under the private plan.
Requirements for Your Private Temporary Disability Insurance in New Jersey
Switching to private temporary disability insurance in New Jersey is easier than ever now that you don’t have to get employee consent to switch, but there are some steps you must follow and some requirements for your private plan.
Benefits
Benefits under a private plan cannot be less than the amount mandated on a State Plan. The benefit amount typically changes each year.
Eligibility
Eligibility requirements must not be more restrictive than what is set for a State Plan claim.
Coverage
Coverage and duration of benefits cannot be less than what is offered by the State Plan.
Premium Costs
The cost of the private plan to the employee cannot be more than it would be under the State Plan. If you are asking employees to contribute toward the cost of your chosen plan, prior to the effective date of the plan, a written election must be held and a majority of employees must agree to the payment.
Contribution to State’s Trust Fund Waived
As long as a private plan remains in force, neither the employers nor their employees are required to contribute to the State’s Temporary Disability Insurance Trust Fund.
Administration
The Private Plan Department of the State of NJ Department of Labor handles all switches to a private plan. EZTDB will work with the department to get your policy approved and switched. Our customer service sets us apart from the state!
Approval
Before they become effective, all private plans for temporary disability insurance in NJ must be approved by the Division of Temporary Disability Insurance. EZTDB works only with a network of approved carriers so you can be sure your plan fits the state’s requirements.
Why You Should Consider EZTDB for Temporary Disability Insurance in New Jersey
EZTDB helps employers in New Jersey by providing them with white-glove, first class service for private temporary disability benefits packages in NJ. We prepare quotes from multiple carriers in a matter of minutes to make sure you get the best.
Compare rates, find the right plan, save money, and pass on the benefits to your employees while EZTDB serves as your back-office support staff to manage and maintain your policies. Let us write your TDI in NJ today!