Disability Plans

Disability insurance is insurance that provides for the payment of amounts in place of a person’s salary when physical or mental disabilities prevent the person from performing gainful employment. Short-term disability payments generally refer to payments of a disability that is of a temporary nature, where the person’s ability to return to their employment is expected. Long-term disability is a disability whose length is not ascertainable.

State Mandated Short Term Disability Coverage

Five states require employers to provide short term disability benefits for all employees. These states require employers to provide a minimum amount of short term disability benefits to all employees while disabled. Some states permit insurance companies to provide the coverage; others insist that all coverage be provided by the state and paid for through payroll taxes. Each state’s plan and administration is handled differently.  The following states require a Disability Plan: