Short Term Disability Benefits: Is It Enough?

When the words disability benefits are heard most people think of permanent disability or maybe total disability.  Many people are in need of benefits such as short term disability benefits which will help them on their road to recovery if they need help for only a brief period or on a temporary basis.  This may also help them in maintaining their job. 

If a person is working he is probably entitled to sick leave if he needs only a small number of days off from work.  There is short term disability for those who need possibly weeks off.  Maybe someone needs long term disability for a long-term impairment.  Whatever the case, all three are available.

Short term disability benefits are approved by the employer.  However, the employer generally makes sure sick leave is used before short term disability benefits can start.

Normally the short term benefit runs between 50% and 75% of the person’s salary.  In some cases employers are able to pay 100% of a person’s pay before reducing it to a lower percentage.  This goes according to how long the person has been employed with a company.  The short term benefit is usually calculated from the salary excluding commissions, bonuses, or overtime.

In order to draw these benefits the employee is absent for either one week or until the sick leave has run out.  Many employers calculate the short term disability plan to cover time until long term benefits start, generally thirteen to twenty-six weeks is the period used.

Each state develops their own plan concerning the provision of short term disability for employees,  Only five states as well as Puerto Rico insists that it be provided by the employers.  A doctor’s statement and some paperwork have to be completed before the larger companies will pay claims.  Other employers purchase from an insurance company.

The state of California’s short term disability plan pays 55% of the gross salary for up to 52 weeks.  The maximum payment is $728 per week.  There is a one week waiting period.

New Jersey’s plan gives 2/3 of the employee’s salary after a one week waiting period and continues benefits for up to 26 weeks.  After 3 weeks have pasted the first week is paid.

Hawaii’s plan provides 58% of salary after a 7 day waiting period and continues payment for up to 26 weeks.

New York’s law states that the employer gives 50% of the employee’s salary after a 1 week waiting period and that it continues for a total of 26 weeks.

You can draw shor term disability from an employer when you have used up your sick leave time and need to take a short length of time off from work due to a disability.  Your benefits are governed by state and federal laws.  They are also protected under the same provisions.