New Jersey

There are some changes to the Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) program, which are the income replacement benefits in NJ.

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI)

What is the Update?

Effective January 1, 2022:

Employees will continue to receive up to 85% of their average weekly wage. However, the maximum weekly benefit is increased from $903 to $993.

The contribution rate decreased from 0.47% to 0.14% for TDI and from 0.28% to 0.14% for FLI. The employee taxable base for both programs will be $151,900 which means the maximum employee contribution will be $212.66 for each program ($425.32 total).  The taxable wage base for employers increased from $36,200 to $39,800. Employees contribute to the cost of Family Leave Insurance. Both employers and employees contribute to the cost of Temporary Disability Insurance.  To understand more about how the New Jersey Labor and Workforce Development determines employer contributions for TDI, see here.

Handbook/Policy Updates

Updates to your company handbook may need to be made if you include New Jersey state-specific income replacement benefits information. 

Notice Requirements

Larkin Action

The Larkin Company has updated our leave packets to include the 2022 updates.

Further Company Considerations 

We recommend you confirm with your payroll team that they have updated your payroll system to collect the decreased employee contributions.  

Ensure you are offsetting any salary continuation/company top-up pay aligned with the new benefit rate maximum, where applicable.  The Larkin Company will adjust offsets for any top-up (leave of absence pay) calculations or STD, accordingly, if we handle these services for you.   

*Reminder: claims that start in 2021 will be awarded 2021 benefit rates. Claims that begin on or after January 1, 2022, will be eligible for the new benefit rate. 

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