ASSEMBLY LABOR COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2465

STATE OF NEW JERSEY

DATED: NOVEMBER 7, 1996

      The Assembly Labor Committee reports favorably Assembly Bill No. 2465.

      This bill requires any governmental entity which elects not to provide benefits under the State's "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et seq.) to give written notification to all of its employees, including newly hired employees, that temporary disability insurance (TDI) coverage is not provided to the employees. The bill also requires each governmental entity which does elect to provide TDI benefits coverage, and each employer that is required to provide the coverage, to notify its current and newly-hired employees of that coverage.

      Almost all private sector employers are required to provide their employees with TDI benefits consisting of up to 26 weeks of partial income replacement during a period of disability caused by illness or injury occurring outside of the workplace. The State government and most other governmental entities voluntarily provide those TDI benefits. Therefore, employees of the small minority of employers which do not provide TDI benefits often become aware that they do not have coverage only after they become disabled. The notification required by this bill will provide such employees with a better opportunity to make plans to respond to possible disabilities, as well as make employees who do have coverage aware of their TDI benefits.