New Jersey law
Long-Term Disability & ERISA Laws in New Jersey.
Most private long-term disability (LTD) insurance is employer-sponsored and governed by ERISA, which preempts state contract and bad-faith claims. ERISA claims must exhaust internal appeals and are reviewed under a deferential standard if the plan grants discretion. Individual (non-ERISA) policies are governed by New Jersey contract law and may support Pickett-standard first-party bad-faith claims. New Jersey also provides a state Temporary Disability Insurance (TDI) short-term benefit separate from long-term disability.
Last verified: 2026-04-17
State law
Key New Jersey Statutes
ERISA preempts state-law breach of contract and bad-faith claims for employer-sponsored LTD plans.
For non-ERISA individual LTD policies, New Jersey recognizes first-party bad-faith claims where the claim is not "fairly debatable." Consequential damages and punitive damages available.
De novo unless the plan grants discretion; then abuse-of-discretion applies.
State short-term disability program providing up to 26 weeks of benefits for non-work-related disabilities. Separate from employer-sponsored LTD.
State law
Official Sources
Not Legal Advice
This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in New Jersey.
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