NY or NJ Disability Insurance: Which State Offers Better Benefits for Tech Workers?

In today’s competitive business environment, where employees are taking advantage of work-at-home policies to move from expensive cities to less pricey suburbs, New Jersey business owners have a greater advantage to recruit top tech talent than ever before.

After all, tech workers could live in spacious New Jersey suburbs and work in Manhattan. But working for a local company still has certain advantages, including options to get actual (in-person) face-time with your bosses, the occasional company lunch, and staying connected with your co-workers.

In a recent study by global staffing firm Robert Half, nearly 50% of employees said they would prefer a hybrid arrangement, where they spent at least some time in the office. New Jersey businesses have the advantage of providing a shorter, easier, and less expensive commute for workers who have settled in the suburbs.

Some Employees Worry About Working Remotely

The same study discovered that:

  • 28% of employees worry their relationship with co-workers could suffer if they work from home
  • 20% believe it could limit their career advancement opportunities
  • 26% worry about decreased productivity if they don’t return to the office

With this in mind, it’s easier for New Jersey tech firms to entice top talent from Manhattan to their neighboring state. And the state-mandated employee benefits package could cinch the deal.

Let’s compare NY and NJ disability insurance benefits and Family Leave Insurance (FLI) for New Jersey employees versus those in NY.

NJ Disability Insurance

NJ disability insurance mandates that most employers provide short-term disability benefits to eligible employees who can’t work because of an injury or illness that occurs off the job. Workers’ compensation covers injuries that occur on-the-job.

With NJ disability insurance, claimants receive 85 % of their average weekly salary, up to a maximum weekly benefit of $903 per week in 2021.

Additionally, in 2020, New Jersey also introduced Family Leave Insurance (FLI), written as part of TDB coverage. In 2021, employees can receive 1/3 of their total gross wages earned for up to 12 consecutive weeks or for eight intermittent weeks. As with TDB, the maximum benefit for 2021 is $903 per week.

The program is for parents who just gave birth, non-birthing parents who wish to bond with a newborn, adoptive and foster parents, and family caregivers.

Unlike TDB, where employers and employees share the costs, FLI is 100% funded by the employer.

New York Disability Leave and PFL in New York

Compared to NJ disability insurance, New York’s DBL coverage is hardly enough to live on. New York tech workers can claim DBL for up to 26 weeks, receiving 50 % of their average weekly wages up to $170 per week. That’s less than ¼ of the maximum benefit for New Jersey tech workers!

New York’s PFL coverage, however, is one of the most robust programs in the country, offering 12 weeks of paid leave at 67% of the weekly pay, up to $971.61 per week. However, unlike NJ FLI coverage, the benefit is fully funded by employees, with a maximum contribution of $385.34 for employees making $75,408.84.

Privatize NJ Disability Insurance for Cost Savings and Better Service

There is one thing that New York used to have going for it when it came to employee benefits. It’s easy to privatize DBL coverage in NY for better service and faster payouts. Employers can also opt to enrich DBL for their employees, but not every tech company does so.

Now, thanks to new legislation within the past few years, it’s easier than ever for New Jersey business owners to privatize short-term disability coverage to enjoy faster payouts, flexible payment forms, and better service through your source for TDB in New Jersey: EZTDB.

Backed by 45+ years in the insurance industry, EZTDB is your elite insurance broker for NJ disability insurance and ancillary benefits to recruit and retain top tech workers from New York.