When an injury or illness takes you off the job, New Jersey has multiple programs that can help provide financial support. These programs include workers’ compensation and temporary disability insurance.
Knowing the difference between workers’ comp vs. disability benefits is important. However, determining which program your situation qualifies for is not always simple. Fortunately, the team at Petro Cohen has decades of experience supporting injured first responders and can help you understand your options and identify the appropriate program for your needs.
What Is Workers’ Compensation?
Workers’ compensation covers injuries and illnesses that arise out of and in the course of employment. It is essentially a no-fault system that provides workers with care and financial support after suffering on-the-job injuries.
First responders might receive benefits after suffering:
- Traumatic injuries sustained on duty,
- Occupational illnesses linked to job exposure, or
- Repetitive stress injuries.
Workers’ compensation benefits typically include:
- Medical treatment paid for by your employer,
- Temporary disability payments that replace a portion of your wages while you cannot work, and
- Permanent disability benefits if your injury has lasting effects.
The workers’ compensation system can alleviate your stress regarding healthcare and wages, but it can also be restrictive because your employer has the right to monitor your medical care.
What Is Disability Insurance?
In general, New Jersey employees are entitled to New Jersey Temporary Disability Benefits if the employee cannot work due to non-work-related injuries or illnesses. This wage replacement is covered by New Jersey Temporary Disability Benefits, (TDB). This is different from any private disability plan you may have through your employer.
These benefits do not cover medical care. They focus only on income replacement while you are unable to work.
What Is the Difference Between Workers’ Comp and Disability Benefits?
While both workers’ compensation and TDB offer wage replacement when you can’t work, they apply in different situations based on the cause of your condition.
Eligibility Requirements
Understanding eligibility is key when comparing workers’ comp vs. disability insurance.
Disability insurance
To qualify for temporary disability benefits in New Jersey, your condition must prevent you from working and must not be work-related. Your eligibility also depends on your work history and earnings, as determined by evolving thresholds set by state law.
Workers’ compensation
Workers’ compensation applies when your injury or illness arises out of and because of your employment. Unlike disability benefits, your eligibility is not based on how long you’ve worked or how much you have earned, but on whether your condition is connected to your job.
Even if your injury does not completely prevent you from working, you may still qualify for workers’ compensation benefits, such as employer-authorized medical treatment.
Benefits Available
Both programs offer partial wage replacement when you cannot work.
Payments for workers’ comp vs. disability generally break down as follows:
- TDB—typically a percentage of your wages, up to a weekly maximum set by law; and
- Workers’ compensation—approximately 70% of your average weekly wage, subject to legal limits.
Unlike workers’ compensation, disability benefits do not cover your medical care, and they do not provide a final payout based on permanent impairment from your condition. Workers’ compensation cases are also not limited to 26 weeks of benefits, while disability insurance cases are.
Benefit Deadlines
Workers’ compensation and disability benefits also have different timelines for claiming benefits. Understanding this difference between workers’ comp and disability insurance can help you act quickly and maximize the benefits you receive.
Workers’ compensation
In general, you must notify your employer about an on-the-job injury within 14 to 90 days of getting hurt. But if you wait more than 14 days to give notice, your compensation may be reduced.
Disability insurance
To claim disability benefits, you must apply within 30 days of taking leave for your condition. You apply through the New Jersey Department of Labor & Workforce Development, and you can submit your paperwork by fax, online form, or mail.
Can You Get Workers’ Comp and Disability at the Same Time?
In most cases, you can’t receive both workers’ compensation and temporary disability benefits for the same period of time and the same condition.
However, there are limited circumstances where both systems may be involved. For example, if your workers’ compensation claim is delayed or denied, you may receive disability benefits temporarily while the issue is resolved. If workers’ compensation is later approved, the disability insurer may be reimbursed from that award.
Because these systems can overlap in certain situations, timing and documentation are important to avoid delays or reductions in benefits.
When to Choose Workers’ Comp vs. Disability
In most cases, which system you seek benefits from depends on whether your condition is work-related.
Workers’ compensation generally applies to injuries or illnesses caused or worsened by your job. These claims can provide medical treatment, wage replacement, and potential long-term disability benefits.
Temporary disability benefits generally apply to conditions that are not related to your work and provide wage replacement only.
However, determining whether your condition falls under workers’ compensation or temporary disability benefits is not always straightforward, especially when the cause of your injury or illness is disputed. In these situations, it’s wise to consult a qualified legal professional.
The attorneys at Petro Cohen, P.C. can evaluate the facts, ensure your claim is filed under the correct system, and help you avoid delays or loss of benefits. With guidance from Petro Cohen, you can better protect your rights and secure the full support available to you.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
- When workers’ compensation applies, N.J.S.A. 34:15-7 (1979).
- Requirements for public safety workers to receive compensation, N.J.S.A. 34:15-31.5 (2019).
- Division of Temporary Disability and Family Leave Insurance, “Information for Workers: When You’re Sick, Injured, or Post-Surgery.”
- Compensable disability for disability benefits, N.J.S.A. 43:21-29 (2020).
- Definitions for disability benefits, N.J.S.A. 43:21-27 (2020).
- Schedule of workers’ compensation payments, N.J.S.A. 34:15-12 (2019).
- Nonduplication of benefits, N.J.S.A. 43:21-30 (2005).
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