New Jersey TDB vs. FLI vs. FMLA

The state of New Jersey recently increased benefits for both its Family Leave Insurance (FLI) and New Jersey TDB, along with making several other changes to the legislation that provides statutory benefits to New Jersey-based employees who work in organizations with 30 employees or more.

Learn more: New Jersey Expands Family Leave Insurance

Employees may be confused about which disability benefits they should claim under various circumstances.

Reputable New Jersey insurance brokers, including EZTDB, can help guide business owners and their employees through the maze of employee benefits, clearing up any confusion about New Jersey TDB, family leave in New Jersey, and federal legislation that offers job security if you have to take family or medical leave.

Understanding the Family Medical Leave Act

It’s important to realize that the Family Medical Leave Act, a federal law passed in 1993, does not provide paid leave, wage replacement, or any paid benefits to employees. Rather, it guarantees employees can take job-protected leave and maintain their group health insurance coverage under certain circumstances.

The Family Medical Leave Act (FMLA) offers eligible employees 12 weeks of unpaid leave to:

  • Care for a newborn child, adopted child, or foster child within the first year of the birth, adoption or foster care
  • Care for a spouse, child, or parent with a serious health condition
  • Maintain the home if an employee’s spouse, son, daughter, or parent is serving “active duty” in the U.S. military

The “medical” portion of FMLA also provides unpaid time off if an employee is suffering from a serious health condition that means the employee cannot perform the essential functions of their job, as long as the injury or illness is not work-related. Job-related injuries and illnesses would require a workers’ compensation claim.

In short, it’s important to understand that FMLA provides unpaid leave. The employer must provide the same or equal job position, at the same rate of pay or better, to an employee when they return from their 12 weeks of job protected leave.

Family Leave Insurance in New Jersey

Employees who qualify for FMLA should most likely also file for FLI in New Jersey. Family Leave Insurance benefits provide paid leave to employees who are out of work due to reasons covered under FMLA. FLI also covers a few other contingencies. It provides up to 12 weeks of paid leave and job protection for up to 20 days for employees who are the victims of domestic violence.

Employees can file for FMLA (unpaid job-protected leave) and FLI (paid leave) concurrently. Also, employees do not have to use all their paid time off (PTO) before filing for leave if they are eligible.

New Jersey TDB Coverage

Temporary disability benefits, or New Jersey TDB coverage, offers paid leave for employees who are suffering from an illness or injury that is not job related. As with FLI, employees can file for New Jersey TDB concurrently with FMLA.

However, employees cannot file for FLI and New Jersey TDB concurrently, but they can take the leave consecutively. For instance, if a parent gives birth and takes six weeks of paid disability leave following a c-section, they cannot file for family leave to care for their newborn at the same time.

However, once they’ve used up their disability coverage, they can file for FLI to care for their newborn within the first year of birth.

Both FLI and New Jersey TDB provide 85% of an employee’s weekly pay up to a maximum of $903 per week. However, it’s important to file for the right benefit so the claim isn’t denied.

A hands-on, tech-savvy insurance broker and general agency like EZTDB can help ensure you have the coverage your employees need – and can save you money by privatizing New Jersey TDB benefits.

Reach out for your free consultation today to learn more about the money-saving advantages of privatizing New Jersey TDB.