Can My Employer Fire Me While I’m on Temporary Disability in New Jersey?

If you are unable to work because of an illness, surgery, pregnancy-related recovery, or another qualifying medical condition, New Jersey Temporary Disability Insurance (TDI) may provide partial wage replacement while you are out of work.

But does receiving TDI also protect your job?

As of July 17, 2026, New Jersey law provides job protection to many employees receiving TDI benefits. The new protection applies when the employee receives TDI benefits from the State or an approved private plan and the leave is not already protected under the New Jersey Family Leave Act (NJFLA) or federal Family and Medical Leave Act (FMLA).

That means an employer generally cannot fire an employee because the employee is taking protected leave or receiving TDI benefits. However, TDI does not make an employee immune from every legitimate employment action.

What Is New Jersey Temporary Disability Insurance?

New Jersey TDI provides benefits to eligible workers who cannot work because of a physical or mental illness or injury that was not caused by their job. Pregnancy and recovery from childbirth may also qualify.

Examples include:

• Recovery from surgery
• Pregnancy or childbirth recovery
• A serious illness
• A qualifying mental health condition
• An injury that occurred outside of work

Work-related injuries are generally handled through workers' compensation rather than TDI.

TDI is primarily a wage-replacement program. Job protection is a separate issue, which is why the July 2026 change is significant.

Does Temporary Disability Now Protect My Job?

For many New Jersey workers, yes.

Beginning July 17, 2026, employees receiving TDI benefits from the State or an approved private plan may have job-protected leave when the leave is not already covered by the NJFLA or FMLA.

Importantly, there is no minimum employer-size requirement or work-history requirement for this new TDI/FLI job protection. Eligibility for TDI benefits is based on recent earnings.

For 2026 claims, workers generally qualify for TDI benefits by either working at least 20 weeks while earning at least $310 per week or earning a combined $15,500 during the applicable base year.

What Job Must My Employer Return Me To?

When TDI job protection applies, New Jersey law provides a right to return to the same job or a job with the same pay, benefits, seniority, and other terms and conditions of employment after the leave ends.

An employer therefore cannot simply use protected medical leave as an excuse to eliminate an employee's position or replace the employee with someone else.

That does not necessarily prevent an employer from making a legitimate business decision that would have occurred regardless of the employee's leave. The reason for the employer's action remains important.

Does the Protection Apply to Small Employers?

Yes.

The new TDI/FLI job protection does not impose a minimum employer-size requirement. This is particularly important for employees of small businesses who previously might not have qualified for federal FMLA protection.

The change can affect workers at:

• Small medical offices
• Local restaurants and retailers
• Family-owned businesses
• Startups
• Small professional firms

For employees of smaller businesses, this can provide an important new layer of job security during medical leave.