The DBL Center can help brokers write NJ temporary disability insurance benefits (TDI) and family leave insurance (FLI) to save clients money and improve absence tracking.
New Jersey workers are facing another hit to their budgets in 2027, with NJ increasing eligible employee contributions for both TDI and FLI in the new year.
Effective January 1, 2027, employees will contribute 0.24% for TDI, with a maximum contribution of $425.04 per year. That’s a dramatic increase from 0.19% in 2026.
FLI employee contributions also increased marginally, from 0.23% to 0.24%. With an increased taxable wage base of $177,100, an employee’s total maximum contribution for both benefits could reach $850.08 for the year, or more than $70 per month.
Benefit Increases for 2027
The benefit amount has also increased for both TDI and FLI. Workers still collect up to 85% of their maximum weekly wage, but the maximum benefit for TDI and FLI in 2027 increases to $1,158, up from $1,119 in 2026.
Who Is Required to Offer TDI and FLI?
Most businesses with employees working in New Jersey must provide FLI and TDI for those workers. Business owners have the opportunity to choose between the state public insurance program or a private insurance plan that meets or exceeds New Jersey requirements.
The federal government is not required to provide this benefit to New Jersey workers, and local governments have the option to provide it or not.
Employer Financial Responsibilities
When using the state’s public program, FLI is fully employee funded, with a maximum taxable wage base of $177,100 in 2027. Employers are required to withhold and remit premium payments to the state or to their carrier for a private plan.
For TDI, the state’s public plan cost for employers to provide coverage ranges between 0.10% and 0.75% of the first $46,400 per employee beginning in 2027. That amount is also up from $44,800 in 2026.
If an employer chooses to offer a private plan, they may find cost savings because each employer is individually underwritten.
How Can Brokers Help New Jersey Business Owners and Workers Save?
Earlier this year, The DBL Center alerted our clients to the expanded Job Protection benefits being added to NJ TDI and FLI. Adding job protections increased the dependency employers have on their claim administrator to provide reporting and case by case level reports for time worked as well as benefits paid.
Brokers who work with The DBL Center are in a unique position to help their clients save money and receive better service by writing FLI and TDI through a private plan.
Businesses with a private plan for TDI and FLI can enjoy the following advantages:
- Cost savings compared to the state plan
- No annual assessment fee
- Dedicated claims servicing
- Employer reports and web portals to support job protection and paid benefits
- Weekly or biweekly payments to mimic the frequency of their paychecks from their employer
Advantages for Brokers
For brokers, the advantage is obvious: Help your clients privatize TDI, stay in compliance, and save money, while you increase your revenue and build trust as an expert resource. You don’t have to do it alone, though. The paid leave experts at The DBL Center are here to help.
If you have companies with New Jersey workers as part of your book-of-business, those companies need TDI and FLI. A private plan is the smarter choice.
Plus, once your clients start saving money with private TDI and FLI, you can help them analyze their employee benefit needs and roll the cost savings into ancillary and voluntary worksite benefits.
The tighter budgets get, the more important it is to find ways to meet employee needs through robust benefits packages.
Ready to help your clients start 2027 with a private plan? Reach out to The DBL Center today.
FAQs
Can New Jersey employers save money by switching to private TDII and FLI coverage?
Many can. The DBL Center just requires a census to perform a market analysis and compare the state cost to private plan pricing. . TDI. Private plans deliver a number of advantages, including personalized service, employer portals for claim management, and lower premium rates. Since New Jersey just announced a higher premium rate for TDI and FLI effective January 1, 2027, the savings grows even more substantial.
Which clients are the best candidates for a private NJ disability or family leave plan?
Employers currently participating in New Jersey’s state plan are a good starting point, especially those facing higher disability contribution rates or seeking more hands-on claims support. Clients with favorable claims experience may be particularly worth quoting. Brokers should compare each employer’s payroll, claims history and current costs with available private-plan options to identify potential savings and service improvements.
Most businesses with workers based in New Jersey, even if the company is headquartered elsewhere, need to provide these benefits to remain compliant.
How do private-plan benefits compare with New Jersey’s state TDI and FLI coverage?
Private FLI and TDI programs must deliver the same or better benefits than the New Jersey state plan, with equal or lower premium costs. Employers can’t lose by letting a trusted broker shop around for a private plan.
How can The DBL Center help brokers quote and place NJ TDI and FLI coverage?
Through our trusted network of highly rated insurance carriers, The DBL Center can shop around to secure the lowest premium rates and best benefits packages for NJ TDI, FLI, and ancillary benefits. We deliver white-label, white-glove service to help you manage and administrate plans, while our Net Revenue Tracker helps you stay on top of renewals, cancellations and commissions.
