Mandated Temporary Disability Benefits

In a number of states, employers are required to contribute to temporary disability insurance programs. Unlike workers’ compensation benefits, which employees collect as a result of a work-related injury or illness, disability insurance provides benefits to workers who are prevented from working due to a non-job-related injury or illness, including pregnancy or childbirth.

There are short-term and long-term disability programs. Although some employers offer short and long-term disability plans to their employees as fringe benefits, employers outside the few states with disability programs are not required to do so. 

Five states require employers to provide temporary disability benefits for employees. These states require employers to provide a minimum amount of short term disability benefits to employees while they are prevented from working due to an off-the-job injury or illness. Some states permit insurance companies to provide the coverage; others insist that all coverage be provided by the state and paid for through payroll taxes. Each state’s plan and administration is handled differently, including eligibility requirements, benefit amounts and the duration of benefits. The following states require some form of a Disability Plan:

• California  
• Hawaii  
• New Jersey 
• New York  
• Rhode Island 

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