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Summary

California, Hawaii, New Jersey, New York, Rhode Island and Puerto Rico have laws that require employers to provide Short Term Disability benefits for illness and non-occupational accidents to their employees.

The tendency of employers in those areas is to rely on the government programs and not have additional, voluntary short term disability programs, unless an employer in those locations also has employees in other states.

If you reside in one of the subject areas, the details of the law are important because these laws govern the benefits you receive if you become disabled. For information, see the other sections of this article. 

NOTE: Supplemental Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) both correlate with state disability income programs. To learn about the correlation, click here.

California

Name:           Called State Disability Insurance (SDI)

Coverage:     California employees. Some employees are exempt. For example, railroad employees, employees who claim religious exemptions, and most government employees. Also covers self-employed people who join voluntarily.

Eligibility:      You must have earned at least $300 from which Short Term Disability Income taxes were withheld during a previous 12 month period. It doesn't matter whether you have a pre-existing condition.

Premium:     For 2013, employers and employees each pay a payroll tax of 1% of payroll. The maximum tax is $1,008.80 per employee, per year ($100,880 x .010). The payroll tax applies to the first $100,880 in earnings or profit only.

Waiting period:   7 days, benefits start on the 8th day.

Benefit Period:    52 weeks

Covers:         Full and part time workers, except employees of the federal government, certain domestic workers, and other specific categories.

Weekly benefits:    Approximately 55% of gross salary based on your highest quarter earnings in the first 12 of the last 18 months.

Taxes:         California SDI benefits are not subject to income taxes.

NOTE:          California gives SDI to people who are disabled due to elective or cosmetic surgery as well as other non-occupational disabilities.

Claims forms:   are obtained at your doctor's office or non-profit agencies and are sent directly to the State Employment Development Department ("EDD"). Only you (the claimant) and your doctor complete the claim form. Your employer will be notified that there is a claim once it is approved. No details are given to the employer.

Source of Coverage:    Employees participate in the State plan or an employer may provide a Self-insured Voluntary Plan as long as benefits meet or exceed State benefits.

For more information:    See "Disability Insurance" at www.edd.ca.gov/ offsite link.  The statewide toll free number is 800.480.3287.:

Hawaii

Name: Temporary Disability Insurance

Who Must Carry: Employers must carry insurance coverage or have a sick leave program that includes the minimums described in the state program.

Premium: The employer may deduct one-half the premium cost but not more than 0.5% of weekly taxable wages up to the maximum set annually by the Division.

Benefits: Cash benefit up to 58% of your average weekly wages to a maximum.

Taxes: Hawaiian Temporary Disability Insurance benefits are taxable to the extent that the employer pays the insurance premiums. For example, if the employer pays 50% of the premiums, 50% of the benefits will be subject to income tax.

Waiting period: 7 days, benefits start on the 8th day.

Benefit Period: 26 weeks of payments during a benefit year.

Covers: Full and part time workers, except employees of the federal government, certain domestic workers, and other specific categories.

Eligibility: You must have been employed at least 14 weeks during each of which you were paid for 20 hours or more and earned not less than $400 in each of the four completed calendar quarters before the onset of your disability. The 14 weeks do not have to be consecutive or with just one employer. It doesn't matter whether you have a pre-existing condition. Medical questions aren't asked.

Claim Forms: Available from your employer. You complete Part A: Claimant's Statement. The employer completes Part B:  Employer's Statements. Then you have your doctor complete Part C:  Doctor's Statement. Completed claim form must be filed with the insurer within 90 days of the disability date.

Source of Coverage: Coverage is either purchased from an insurance company or the employer (or union) establishes a self-funded plan.

For more Information: See www.homepages.uhwo.hawaii.edu/clear/laborlaws.html offsite link. Look under Wage Loss Replacement Laws offsite link; then under Hawaii Temporary Disability Insurance Law offsite link. The state site only provides a little information and it is almost hidden and must be downloaded. A better overview of the state program can be found at a commercial site directed at selling TDI coverage to employers: www.aighawaii.com/products/TDI/ offsite link.

Contact numbers for state offices are:

  • Oahu 808-586-9188
  • Hilo 808-974-6464
  • West Hawaii 808-322-4808
  • Maui 808-984-2072
  • Kauai 808-274-3351

New Jersey

Name:   Temporary Disability Benefits

Who Must Carry:    All New Jersey employers except certain government entities.

Premium:   Employee cost cannot exceed 0.5% of the first $22,100 of annual wages per person. Employer cost is based on a factor assigned by experience, not exceeding 0.75% of the first $22,100 of wages.

Benefits:    66-2/3% of the average weekly wage to a maximum per week. Benefit is based on the base earnings in the eight calendar weeks before the start of the disability.

Taxes:   New Jersey Temporary Disability benefits are taxable to the extent that the employer pays the insurance premiums. For example, if the employer pays 50% of the premiums, 50% of the benefits will be subject to income tax.

Waiting period:   Eighth day of Disability. If employee is disabled for three consecutive weeks following the waiting period, benefits are retroactive to the first day of disability.

Benefit Period:   26 Weeks

Covers:   All employees working in New Jersey except for certain government employees.

Eligibility:   As of 2010, a disabled worker must have Earnings of at least $145 per week for 20 base weeks of covered employment in New Jersey prior to the start of the disability or, alternatively a total $7,300 in earnings from covered employment in the 52 weeks immediately before the start of the disability. It doesn't matter whether you have a pre-existing condition. Medical questions aren't asked.

Claim Forms:   Form DS-1, "Claim for Disability Benefits," may be obtained from your employer, union, local unemployment claims office, or the Division of Temporary Disability Insurance. A claim form can also be obtained through the Customer Service Unit at (609) 292-7060. You must file your claim for benefits within 30 days of the start of your disability. Failure to file by the deadline may result in the loss of some or all of your benefits.

Source of Coverage:   Coverage may be obtained from the state of New Jersey, a private insurer or self-funded by the employer, union, or management-union welfare fund. Private plans must provide at least the same benefits as the state plan, although they can offer more.

For More Information:   offsite linkwww.lwd.dol.state.nj.us/labor offsite link. Click on "employee."

New York

Name:  Disability Benefits Legislation

Who Must Carry:   Most private employers are required by state law to provide for payment of Disability Benefits. Federal, State and City government employees are not covered by this law. Some teachers in private institutions are covered by agreement with their schools. Board of Education employees are not covered.

Covers:   Employees of an employer of one or more persons on each of 30 days in any calendar year.

Eligibility:   Employees or recent employees of a "covered" employer, who have worked at least four consecutive weeks. Domestic and personal employees who work 40 hours or more per week for one employer are also covered under the law. It doesn't matter whether you have a pre-existing condition. Medical questions aren't asked.

Benefits: The New York State Disability program in 2010 pays 50% of your average weekly wages from a minimum of $20 a week to a maximum of $170.00 a week.

Taxes:   New York disability benefits are taxable to the extent that the employer pays the insurance premiums.  For example, if the employer pays 50% of the premiums, 50% of the benefits will be subject to income tax.

Premium:   An employee's contribution is computed at the rate of 0.005% of his/her wages, but no more than $0.60 a week.

Waiting period:   7 days. Benefits begin on the eighth day.

Benefit Period:   26 weeks per disability or during any consecutive 52 weeks.

Claim Forms:  To claim benefits, the disabled employee is required to file "Notice and Proof of Claim for Disability Benefits" (form DB-450), with the employer within 30 days after disability begins. Claims must be filed with the employer.

Source of Coverage:   Coverage may be purchased by employers from an insurance company or they may establish a "Private" self-insured plan as long as it provides benefits equal to or better than the state mandated benefits.

For More Information:  www.nysif.com/ offsite link, the New York State site, does not give much information. For up -to-date information, contact: Worker's Compensation Board Disability Benefits Board, 100 Broadway, Albany, New York 12241, Tel.: 800.353.3092 or 718.802.6964, or 6965, or 6966.

Rhode Island

Name: Temporary Disability Insurance

Who Must Carry: Coverage is provided completely through the Rhode Island Department of Labor and Training.

Covers: Most individuals who work in Rhode Island, regardless of place of residence, are covered. The exceptions are federal, state and some municipal employees as well as partners and non-incorporated self employed workers. Minors, aged 14 and 15, are exempted from wage deductions and Temporary Disability Insurance coverage.

Eligibility: Generally, you must have earned $8,800 during your "Base Period" which is the first four of the last five completed calendar quarters. There are alternative rules for eligibility in case you have not been in the Rhode Island workforce that long. The best way to confirm eligibility is to file a claim. It doesn't matter whether you have a pre-existing condition. Medical questions aren't asked.

Benefits: Your Benefit Rate is your basic weekly payment amount, excluding Dependency Allowances. It is equal to 4.62% of the amount you were paid in the Base Period quarter in which you earned the most wages. The state sends you a Benefit Computation Statement which shows your rate and the wage information used to determine it. Once your Benefit Rate is determined, it remains the same for your entire Benefit Year. For 2010, the minimum weekly benefit is $69 and the maximum weekly benefit rate is $700.

In addition there is a "Dependent Award" for each child under age 18 which is equal to the greater of $10 or 7% of your weekly Benefit Rate. It will be paid for up to five dependent children.

Taxes: Rhode Island TDI benefits are not subject to income taxes.

Waiting period: Everyone must serve a Waiting Period of 7 consecutive days at the start of each new claim. Benefits will be paid retroactively for the first week only if your disability lasts for 28 days or more.

Benefit Period: 30 weeks maximum.

Premium: The Rhode Island program is financed entirely by deductions from your wages. The 2010 withholding rate is 1.2% of your first $57,900 in earnings.

Claim Forms: In Rhode Island , claims forms are called "application for benefits." You can call 401.462.8420 to have a claim form ("application for benefits") sent directly to you or you may download one from www.det.state.ri.us/webdev/tdi/tdihome.htm offsite link or www.dlt.ri.gov/tdi/tdifaqs.htm offsite link

For more information: See: http://www.dlt.ri.gov/tdi/ offsite link

Puerto Rico

Name:  Puerto Rico Short Term Disability Law

Who Must Carry:   Most private employers with one or more employees.

Premium:   Maximum Employee Contribution in 2001 is 0.3% of the first $9,000 in taxable wages.

Benefits: 65% of average weekly wage from a minimum of $12 per week to a maximum of $113 per week ($55 per week for farm labor) in 2001. There are additional benefits in the event of death or dismemberment.

Taxes:  Puerto Rico short-term disability benefits are partially taxable.

Waiting period:   7 days. Benefits begin on the 8th day. Waiting period is waived if the employee is in the hospital for more than 24 consecutive hours during the first week.

Benefit Period:   26 weeks.

Covers:   All employees except government employees and certain tax-exempt organizations.

Eligibility:   As of 2001, earning $150 or more in wages in base period, and at least $37.50 in high quarter. It does not matter whether you have a pre-existing condition. Medical questions are not asked.

Claim Forms:  Claim forms may be obtained from your physician, employer or the responsible agency listed in "For More Information" below.

Source of Coverage:  Coverage may be purchased from the State Plan, a private insurer, or the employer may establish a "Private" self-insured plan.

For More Information:   Contact the Department of Labor Bureau of Employment Security. Tel: 787.754.2119

     

Relationship To Social Security Disability Insurance (SSDI) And Supplemental Security Income (SSI)

If you receive Social Security Disability Insurance("SSDI") while collecting a state disability benefit, Social Security will reduce the SSDI payment so that the two benefits together do not exceed 80% of your prior average monthly earnings.

You can also receive Supplemental Security Income ("SSI") together with state mandated short term disability income if the state income is under the monthly SSI payment.If the State plan exceeds the SSI amount in your state, you can apply for SSI while still collecting benefits but you will not receive the SSI benefits until the short term disability payments run out.

You will need to provide the Social Security Administration with a copy of your Notice of Exhaustion of Benefits to get either the SSDI or SSI payments adjusted.