Which States Require Short-Term Disability Insurance?

Most Americans have no state-mandated short-term disability coverage. If you become ill or injured and cannot work for a few weeks or months, you are on your own unless your employer offers benefits voluntarily. However, workers in a handful of states are more fortunate. Five states and the District of Columbia require employers to provide short-term disability insurance, and several more states are launching programs in 2026.

Understanding your state's requirements matters because state disability programs vary widely in benefit amounts, duration, and funding. Even in states with mandatory programs, the benefits often fall short of what workers need. This guide covers each state's program, the new programs launching in 2026, and how state coverage compares to private short-term disability insurance.

The Five States With Mandatory Short-Term Disability

Five states have longstanding mandatory temporary disability insurance programs that require employers to provide short-term disability coverage to eligible employees. Each state runs its program differently, with varying benefit levels, durations, and funding mechanisms.

• California: The State Disability Insurance (SDI) program replaces approximately 55 percent of wages, up to a maximum of about $1,075 per week. Benefits last up to 52 weeks. The program is funded entirely by employee payroll deductions. California also has a separate Paid Family Leave program that provides wage replacement for bonding with a new child or caring for a seriously ill family member.
• New Jersey: The Temporary Disability Insurance (TDI) program replaces 85 percent of average weekly wages, up to a maximum of approximately $993 per week. Benefits last up to 26 weeks. The program is funded primarily through employee payroll deductions, with small employer contributions. New Jersey also offers Family Leave Insurance for caregiving and bonding.
• New York: The Disability Benefits Law provides 50 percent of average weekly wages, up to a maximum of $170 per week. Benefits last up to 26 weeks. This is the lowest maximum benefit among the five states. Costs are shared between employees and employers. New York also has a Paid Family Leave program with significantly higher benefits than the disability program.
• Rhode Island: The Temporary Disability Insurance program replaces roughly 60 percent of wages, with a maximum weekly benefit of approximately $1,007. Benefits last up to 30 weeks. The program is funded entirely by employee payroll taxes. Rhode Island also offers Temporary Caregiver Insurance for family caregiving.
• Hawaii: The Temporary Disability Insurance law requires coverage that replaces 58 percent of average weekly wages, up to approximately $765 per week. Benefits last up to 26 weeks. Employers must pay at least half the cost, and employees pay the remainder. Hawaii is unique in that employers must provide coverage through private insurance carriers rather than a state-run fund.

District of Columbia Paid Leave

The District of Columbia has a Universal Paid Leave Act that provides wage replacement benefits for medical leave, family leave, and prenatal leave. For personal medical leave, which functions similarly to short-term disability, the program provides up to 12 weeks of benefits. The benefit replaces 90 percent of wages up to a threshold, then 50 percent of wages above that threshold, with a weekly maximum.

The DC program is funded entirely by employer payroll taxes. Employees do not contribute directly. This is a different funding model from most state programs where employees pay some or all of the cost.

New State Programs Launching in 2026

The landscape of state-mandated disability and paid leave programs is expanding. Several states are launching new programs in 2026 that include short-term disability-style benefits as part of broader paid family and medical leave laws.

• Minnesota: Minnesota's paid family and medical leave program begins benefit payments in 2026. The program provides up to 12 weeks of medical leave benefits and 12 weeks of family leave, with a combined annual maximum of 20 weeks. The maximum weekly benefit is approximately $1,423. The program is funded through payroll taxes split between employers and employees.
• Delaware: Delaware's paid family and medical leave program is rolling out in phases, with payroll contributions beginning and benefits scheduled to start for eligible workers. The program will cover medical leave for the worker's own serious health condition, as well as family caregiving and parental bonding.
• Maine: Maine is implementing a paid family and medical leave program that will provide benefits for workers who need time off for their own medical condition or to care for a family member. The program is funded through payroll contributions from both employers and employees.

Other states with existing paid leave programs that include medical leave benefits include Washington, Massachusetts, Connecticut, Oregon, Colorado, and Maryland. The trend is clearly moving toward more states providing some form of mandatory paid leave that includes disability-related benefits.

How FMLA Compares to State Disability Programs

The Family and Medical Leave Act is a federal law that applies in all 50 states, but it is fundamentally different from state disability insurance. FMLA provides up to 12 weeks of job-protected leave per year for qualifying medical or family reasons. The critical distinction is that FMLA is unpaid. It protects your right to return to your job, but it does not replace any of your income while you are out.

FMLA also has eligibility requirements that many workers do not meet. You must work for an employer with 50 or more employees within 75 miles of your worksite, and you must have worked for the employer for at least 12 months and 1,250 hours in the past year. These requirements exclude many part-time workers, newer employees, and workers at smaller companies.

In states with mandatory disability programs, workers can use FMLA and state disability benefits simultaneously. FMLA protects your job while the state disability program provides income replacement. In states without mandatory programs, FMLA leave is unpaid unless your employer voluntarily offers short-term disability or paid sick leave.

Gaps Between State Programs and Private Insurance

Even in states with mandatory disability programs, the benefits often leave significant income gaps. Understanding these gaps helps you decide whether supplemental private coverage is worthwhile.

• Low benefit caps: New York's maximum of $170 per week is far below what most workers earn. Even California's higher cap of about $1,075 per week replaces only a fraction of income for workers earning above-average salaries.
• Limited duration: Most state programs provide benefits for 26 to 52 weeks. If your disability lasts longer, you need a transition to long-term disability coverage. State programs do not cover long-term disabilities.
• No coverage in most states: The 45 states without mandatory programs offer no state disability safety net at all. Workers in these states rely entirely on employer-sponsored coverage, private insurance, SSDI, or personal savings.
• Definition differences: State programs define disability as the inability to perform your regular or customary work, which is generally an own-occupation standard. Private policies may use own-occupation or any-occupation definitions depending on the plan.

Voluntary Short-Term Disability in Non-Mandatory States

In the 45 states without mandatory short-term disability programs, your options depend on your employer and your willingness to buy individual coverage.

• Employer-sponsored voluntary STD: Many employers offer voluntary short-term disability coverage as a benefit during open enrollment. You pay the premiums through payroll deductions, and the group rates are typically lower than individual policies. Coverage usually replaces 60 percent of your base salary for 13 to 26 weeks.
• Individual policies: You can buy individual short-term disability policies directly from insurers, though they are less common and more expensive than group coverage. Another option is to buy a long-term disability policy with a short elimination period of 30 to 60 days, which effectively provides short-term coverage that transitions into long-term protection.
• Emergency fund as a bridge: In states without mandatory coverage, financial advisors often recommend maintaining three to six months of expenses in an emergency fund to cover the short-term gap until long-term disability benefits begin.

How to Check Your State's Requirements

To find out whether your state has a mandatory short-term disability program or a new paid leave law that includes disability benefits, follow these steps:

• Check your pay stub: If you work in a mandatory state, you may see a deduction for state disability insurance or paid family leave on your pay stub.
• Contact your state labor department: Your state's department of labor or workforce development can confirm whether a mandatory program exists and how to file a claim.
• Ask your HR department: Your employer's human resources department can tell you about both state-mandated and voluntary disability benefits available to you.
• Review the DOL website: The U.S. Department of Labor maintains information about state paid leave programs and workers' compensation requirements.

Whether your state mandates short-term disability or not, understanding the full picture of disability protection is important. State programs provide a partial safety net, but most workers benefit from additional private coverage to fill the gaps. For a broader overview of how disability insurance works, including both short-term and long-term coverage, see our guide on what disability insurance is. If you are self-employed in a non-mandatory state, our article on

disability insurance for the self-employed covers the options available to you.