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New Jersey Lowers Temporary Disability and Family Leave Insurance Contributions for 2023

The New Jersey (NJ) Department of Labor and Workforce Development announced a reduction in worker and employer contribution rates to the state’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs for 2023.

The contribution rates for TDI decrease to zero percent, from .14 percent, while the FLI rate will be reduced to .06 percent, from .14 percent. NJ’s TDI and FLI contribution rates have been declining over the past three years largely due to increasing fund balances, as the growing fund balances have outpaced benefit payments.

The TDI and FLI programs allow eligible workers to receive up to 85 percent of their average weekly salary, up to the maximum weekly benefit rate. TDI can be provided for pregnancy, childbirth, or a serious health condition, and FLI can provided to bond with a new child or to care for any loved one who is blood-related or a family-like relation.

Next Steps for Employers

Employers should ensure that that payroll systems are set up to collect the reduced contribution percentages for 2023. The contributions for TDI are shared by the employer and employee, while FLI contributions are funded by employees only.

For additional information on NJ’s TDI and FLI programs, employers may visit: myleavebenefits.nj.gov.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.