New Jersey Temporary Disability Benefits Law
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:
- Off-the-job accident event (i.e. broken leg in skiing accident).
- Extended illness (i.e. heart attack recovery).
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.
Temporary Disability Plan Benefits
Benefits are 66 2/3% average weekly wages to a maximum of $650 per week for 26 weeks after seven-day waiting period. Effective July 1, 2020, this percentage will increase to 85%. 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 a budget analysis from the New Jersey Department of Labor and Workforce Development.
The Benefits of Choosing Arch Insurance
Employers may see several benefits when they choose Arch Insurance over the state of New Jersey’s temporary disability insurance plan:
- Many employers may see a savings when they switch to Arch.
- Arch, on average, pays its claims in five business days or less.
- Arch can offer many claimants tax savings on their disability benefits.
- Policy and related documents are 100% paperless. There’s no waiting for the mail.
- Employer access to online, real-time FICA and claim reports. Arch Insurance offers disability policy holders access to our state-of-the-art online reporting tools.
- Arch will pay the disability assessments the state bills the employer.
Contact Arch for a quote: