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Five states require employers to provide short-term disability coverage: California, New Jersey, New York, Rhode Island, and Hawaii. (Puerto Rico has a similar program.) If you work in one of them, you are already paying for disability insurance through payroll deductions, whether you know it or not. These programs are the reason many workers in those states never buy private short-term disability coverage. Here is what each one actually provides in 2026.
California: the biggest and most expensive
California’s State Disability Insurance (SDI), run by the Employment Development Department, covers short-term disability and Paid Family Leave under one payroll tax. For 2026, employees pay 1.3 percent of wages, and since January 1, 2024, there is no taxable wage cap, so the tax applies to every dollar of earnings. Employers do not contribute. Benefits replace 70 to 90 percent of wages, with lower earners getting the higher percentage, up to a maximum of $1,765 per week in 2026, payable for up to 52 weeks. That is the most generous state program by a wide margin, and the most expensive for high earners, who now pay the tax on their full salary.
New Jersey: 85 percent replacement
New Jersey’s Temporary Disability Benefits program pays 85 percent of average weekly wages up to a maximum of $1,119 per week in 2026, for up to 26 weeks. Benefits start on the 8th day of disability for accidents or illness (from day one for organ or bone marrow donation), and if the disability lasts more than three consecutive weeks, benefits are paid retroactively from the first day. Employees contribute 0.19 percent of wages up to a taxable wage base of $171,100 in 2026, which caps the annual employee contribution at $325.09. Employers pay into the program separately on the first $44,800 of wages at experience-rated rates.
New York: small but long-standing
New York’s Disability Benefits Law has changed little in decades, and it shows. The statutory maximum benefit is $170 per week for up to 26 weeks, and employee contributions are capped at 60 cents per week. Employers cover the rest of the premium. For a low-wage worker it is meaningful help; for anyone earning a professional salary it covers a fraction of one week’s expenses. New York workers are the most likely of the five states’ residents to need supplemental coverage.
Rhode Island: employee-funded, longer duration
Rhode Island’s Temporary Disability Insurance is funded entirely by employee payroll deductions, with no employer contribution. It stands out for duration: benefits can run up to 30 weeks, longer than the 26-week standard in most other states. The taxable wage base and benefit maximums adjust annually with the state’s average wage. Like the other programs, it covers non-work-related illness and injury, including pregnancy-related disability.
Hawaii: employers buy the coverage
Hawaii works differently. Instead of a state fund, employers must provide temporary disability coverage by buying a private policy or self-insuring. Employers can require employees to share the cost, but the employee share is capped: in 2026, no more than 0.5 percent of weekly wages up to a weekly wage base of $1,500.21, which works out to a maximum employee contribution of $7.50 per week. The maximum weekly benefit is $871 in 2026, payable for up to 26 weeks. Eligibility requires 14 weeks of Hawaii employment at 20 or more hours per week and at least $400 in earnings in the 52 weeks before the disability.
What state programs do not do
Every one of these programs is short-term by design. None of them replaces long-term disability insurance, which is what protects you if a condition lasts years. State benefits also coordinate with employer plans rather than stacking on top of them: if your employer provides STD, the state benefit usually offsets it rather than adding to it.
Two practical takeaways. First, if you live in one of these five states, check your pay stub for the deduction so you know the program exists before you need it; most claims are filed online with the state agency and have strict filing deadlines. Second, treat the state program as your short-term layer and shop for long-term coverage separately. The state check covers the first few months. A private long-term policy, which we price out in our disability insurance cost guide, covers the years after that. For how state benefits interact with employer group plans, see group disability insurance through work.
