New Jersey legislation expands family leave and TDI benefits
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Friday, July 31, 2020

New Jersey legislation expands family leave and TDI benefits

By Payroll and Entitlements Editorial Staff

As of July 1, eligible New Jersey workers can take more time off and receive a larger percentage of their wages under the state’s Temporary Disability Insurance and Family Leave Insurance programs, according to the New Jersey Department of Labor and Workforce Development.

Under both the Temporary Disability and Family Leave Insurance programs, eligible workers can now receive up to 85 percent of their average weekly salary, an increase from two-thirds, with a maximum benefit of $881 per week, up from $667.

Workers can also now receive up to 12 consecutive weeks of Family Leave benefits per year, which is double the previous six-week allowance. Workers who take intermittent Family Leave time off can claim up to 56 days, up from the previously permitted 42 days.

Claimants whose first day of leave is July 1 or later are eligible for the expanded benefits.

Earnings qualification. To qualify for Temporary Disability or Family Leave benefits this year, an applicant must have earned at least $200 per week for 20 base weeks, or alternatively, have earned at least $10,000 during the base weeks. Benefit eligibility criteria are based on the state minimum wage in effect on October 1, 2019, when the minimum wage in New Jersey was $10 per hour for most employees.

Leave uses. Workers can use Family Leave to bond with a new child or to care for any loved one who is blood-related or a family-like relation. Temporary Disability can be used for pregnancy, childbirth, or a serious health condition.

Wages subject to taxes. A law enacted last year (Ch. 37 (A. 3975), L. 2019) increased the level of wages subject to wage taxes effective January 1 for workers covered under the Temporary Disability and Family Leave Insurance programs to fund the increases in benefits. The taxable wage base is $134,900 for 2020 for workers contributing to these programs.

"New Jersey is a recognized national leader in workers’ rights and income-sustaining benefits programs, and the expansion of our generous benefits further demonstrates the Murphy Administration’s dedication to the health and well-being of our workers," said Labor Commissioner Robert Asaro-Angelo. "These increased benefits will enhance income and job security for our state’s workers during the times in their lives when they need it most" (Ch. 37, L. 2019, effective July 1, 2020).

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