Neighbor News
Downey, Houghtaling Bill to Increase Efficiency of Temporary Disability Claims Processing Continues Advancing
One in Three TDI Claims Takes More Than Three Weeks to Process.
(TRENTON) – Legislation sponsored by Assembly Democrats Joann Downey and Eric Houghtaling to decrease the amount of time disabled workers must wait before receiving state disability benefits was released Monday by a Senate panel.
New Jersey is one of five states that offers temporary disability insurance (TDI), which provides workers with up to 26 weeks of benefits when they are unable to work due to non-occupational, short-term disabilities. The program provides weekly benefits up to two-thirds of a worker’s weekly wage. Pregnancy, childbirth and complications of childbirth account for about 25 percent of all claims and benefits.
“Beneficiaries who rely on TDI benefits – a quarter of whom are women caring for newborn children – often face a significant financial burden when they have to wait weeks before they receive payment,” said Downey (D-Monmouth). “If the employee and his or her employer complete and submit all the necessary paperwork properly, there’s no reason it should take more than three weeks for the beneficiary to receive payment.”
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About 35 percent of TDI claims take more than three weeks for LWD to process, according 2014 data from the department.
The bill (A-4172) would require the Division of Unemployment and Temporary Disability Insurance in the Department of Labor and Workforce Development to make a determination of eligibility for family temporary disability leave benefits and pay out the benefits within three weeks of receiving a notice of a claim for benefits from the employer and employee.
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“Many New Jersey residents, mostly women and children, rely on the timely release of their TDI and FLI benefits every month,” said Houghtaling (D-Essex, Morris). “A delay in releasing these benefits hurts New Jersey families and children who depend on them during a difficult time.”
The bill was approved by the Senate Labor Committee. It was approved 64-6-3 by the full Assembly in March, and now awaits final legislative approval by the full Senate.
