Here’s what brokers in New Jersey need to know about TDI and FLI in the new year
The state of New Jersey Department of Labor and Workforce development has announced changes to its required Temporary Disability Insurance program, and a premium increase for Family Leave Insurance (FLI) in New Jersey.
After waiving the employee contribution for TDI in 2023 and 2024, the New Jersey labor board is reinstating the employee contribution rate at 0.23%, with a maximum employee contribution of $380.42 per year. Employer contributions are based on a taxable wage base of $43,300, up from $42,300 in 2024. Along with the rate increase, the maximum weekly benefit is going up from $1055 in 2024 to $1081 in 2025. The maximum benefit percentage remains at 85% of the employee’s average weekly wage.
NJ FLI Premium Increase
Additionally, the New Jersey State Insurance Fund (NJSIF) has increased the employee contribution rate for Family Leave Insurance to 0.33%, a substantial jump from 0.09% in 2024.
FLI pays the same benefit as temporary disability in New Jersey, with the benefit maxing out at $1,081 weekly. FLI is available for New Jersey workers who need time off to care for or bond with an infant or a newly adopted or foster child within the first 12 months, care for any family member with a serious health condition, or deal with issues of domestic violence.
Benefits of Privatizing TDB and FLI in New Jersey
With yet another premium increase, now is the perfect time to save your clients money by privatizing TDB and FLI in New Jersey through one of The DBL Center’s top-rated carriers. The DBL Center negotiates the best premium rates through our carrier relationships and the volume of business we write.
Privatizing TDB also has other advantages for New Jersey business owners. Not only can business owners save up to 25% on premiums, but they will enjoy white-glove, attentive service, an easy claims process, and faster payouts with no waiting period. Other advantages include:
- Dedicated claims servicing
- Payments weekly or bi-weekly
- Direct deposits of benefits
Find out more reasons you should be writing NJ TDB for your clients with The DBL Center as your white-label, back-office staff in this post.
Plus, employers can take the money they’re saving and put it toward other benefits, including dental, vision, accident insurance, and group life / AD&D. These in-demand benefits can help business owners lure top talent away from competitors. A recent Forbes Advisor survey found that 40% of employers believe workers would leave their job for one with better benefits. The way to retain top workers and recruit the best in your field is to provide not just required benefits like TDB and family leave, but to put together a robust ancillary benefits package.
Forty-five percent of employees listed life insurance as a top benefit they’d like to receive from their employer, based the Forbes Advisor research. More than 30% of younger workers, ages 18 to 41, want pet insurance provided by their employers.
The DBL Center can help brokers provide these benefits to their clients on a voluntary basis or funded by the employer. Business owners won’t feel the added costs, since they are paying less for TDI and FLI through a private plan. Bundling benefits can help save even more money.
Next Steps for New Jersey Insurance Brokers
If you aren’t already sharing the advantages of a private plan for TDI with your clients, you’re leaving commission on the table and doing a dis-service to your customers. Private plans provide reduced costs, better service, and more flexibility. What business owner wouldn’t want that?
Reach out to The DBL Center now and we can help you get started providing rate quotes to your top clients who may not be aware how much they can save with privatized TDI and FLI in New Jersey.
