Skip to main content
Affordable Employee Training Exclusively for NJBIA Members LEARN MORE

New Jersey is one of only five states that mandates a temporary disability benefits program for non-work related illnesses and injuries, but a new law is making it much easier for employers to reduce their  share of this cost by switching from the state plan to a private carrier. 

In an NJBIA webinar this week, NPPG Senior Vice President Patrick Carragher explains how a recent change in state law removed  the requirement that had forced employers to obtain the approval of 51% of their employees before leaving the state plan

With this change, it is now much simpler for employers to obtain faster claims processing, averaging five to seven days with a private carrier, instead of the four-week turnaround time under the state plan, he said. Private plans can also offer more competitive employer contribution rates, which vary based on the employer’s experience rating. 

Carragher also discussed the new state-set employee contribution rates for 2021, which will nearly double from 26 cents per $100 in taxable wages to 47 cents per $100 in taxable wages on Jan. 1.  The employee maximum benefit rate will also increase significantly to 85% of weekly wages or a maximum of $903 a week.  

To view the entire webinar, go here.