If a work injury keeps you out of work for more than seven days, New Jersey workers' compensation generally pays temporary disability benefits at 70 percent of your average weekly wage, subject to a statewide maximum and minimum that change each year. Benefits continue until you return to work, the authorized doctor finds you have reached maximum medical improvement, or the statute's 400-week cap is reached. Late payments, low rates, and early cutoffs are among the most common problems injured workers face, and each can be raised with a Judge of Compensation.
How much is temporary disability in New Jersey?
The rate is 70 percent of your average weekly wage at the time of the injury. The state sets a new maximum and minimum weekly rate each year, so where your wage falls relative to those limits determines your check. Higher earners are capped at the maximum.
The average weekly wage is a calculation, not a guess, and it is easy to get wrong. Questions that often lead to underpayment include:
- whether overtime, shift differentials, or bonuses you regularly earned were counted;
- how an irregular or seasonal schedule was averaged;
- whether a recent raise was reflected.
If the number looks low, ask the carrier how it was calculated. The same wage figure also affects permanent disability later, so it pays to get it right now.
When does it start and when does it stop?
Temporary disability is not paid for the first seven days of disability. If you are out longer than seven days, benefits are paid from the first day.
Benefits generally stop when:
- you return to work, full duty or light duty;
- the authorized doctor finds maximum medical improvement, meaning further treatment isn't expected to improve you meaningfully;
- the 400-week statutory limit is reached.
In practice, the authorized doctor's notes drive these decisions. If you believe you are still unable to work but the doctor releases you, that disagreement can be taken to a judge.
What if you are offered light duty?
Authorized doctors often release workers to restricted duty: no lifting over a set weight, no ladders, seated work. If your employer offers a job within those restrictions, temporary disability generally ends, and refusing a suitable offer can end it too. If the employer has no work within your restrictions, benefits generally continue.
Light-duty disputes usually come down to facts. Does the job offered actually fit the restrictions on paper? Was it a real position or a paper offer? Keep a copy of every restriction note, and write down exactly what you were asked to do.
What can you do if payments stop or never start?
If the carrier is late, stops paying without a sound medical basis, or hasn't started benefits at all, your lawyer can file a Motion for Medical and/or Temporary Disability Benefits with the Division of Workers' Compensation. The Division handles these on an expedited basis. The judge can order benefits to start or resume, including payment for weeks already missed. Our page on medical treatment explains how these motions work, and if the whole claim has been rejected, see what to do after a denial.
While a claim is contested, New Jersey's state Temporary Disability Insurance program may pay, subject to reimbursement if comp later covers the same period.
Is your job protected while you're out?
Not by workers' comp itself. Temporary disability replaces part of your wages; it does not hold your position open. Job protection comes from other places:
- The federal Family and Medical Leave Act may protect your job for a period if you and your employer meet its eligibility rules.
- New Jersey's Law Against Discrimination can require reasonable accommodation when a work injury becomes a disability.
- N.J.S.A. 34:15-39.1 makes it unlawful to fire or discriminate against you for claiming workers' compensation. If that has happened, see the workers' compensation overview.
When temporary disability ends, the case moves on to measuring any lasting impairment. See permanent disability.
Talking to a lawyer about your situation
A missing or reduced check is a household problem, not just a legal one, and it's usually fixable. A lawyer can check the wage calculation, push back on a premature cutoff, and file a motion if the carrier won't move.
Gray Law Group is in Jefferson, Morris County, and represents injured workers in Morris, Sussex, Warren and Passaic counties and throughout northern New Jersey. Bring your pay stubs from before the injury, your doctor's notes, and any payment records to a consultation.
Frequently asked questions
Why is my check less than 70 percent of my pay?
Two common reasons. Benefits are capped at a statewide maximum that changes each year, so higher earners receive less than 70 percent. And the average weekly wage may have been calculated without overtime or other pay that should have been included, which is worth checking.
Are workers' comp temporary disability benefits taxable?
Workers' compensation benefits are generally not subject to federal income tax. How they interact with other benefits, such as Social Security Disability, is a separate question, so it's worth confirming your own situation with a tax professional.
Can I get New Jersey state disability instead of workers' comp?
State Temporary Disability Insurance generally doesn't pay for work injuries. It may pay while a comp claim is being contested, subject to reimbursement if comp is later awarded for the same period.
What happens to temporary disability when I reach MMI?
It generally ends. Maximum medical improvement means the authorized doctor doesn't expect further treatment to meaningfully improve you. Any lasting impairment is then addressed as permanent disability, which is a separate benefit.
This website is for informational purposes only and does not constitute legal advice. Prior results do not guarantee a similar outcome.