Official Site of The State of New Jersey

Limited liability companies are hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship. LLC’s file one of three types of Federal Income Tax Forms, which dictates what type of LLC they are. You may be covered under the Temporary Disability and Family Leave program depending on your LLC type.

Which type of LLC are you?

• Sole Proprietorship (Filing a form 1040C with the Federal IRS) : If you are the owner of a sole proprietorship you are not covered for Temporary Disability or Family Leave Insurance. If you are the owner's spouse, parent, or child (under the age of 18), you are not covered for Temporary Disability or Family Leave Insurance. If you do not fit any of the relationships listed above, your employment is covered for Temporary Disability and Family Leave Insurance and you may be eligible for benefits.

• Membership/Partnership (Filing a form 1065 with the Federal IRS) : If you are a member or partner of a membership/partnership LLC, you are not covered for Temporary Disability and Family Leave Insurance. If you are not a member or partner of that LLC, then you are covered for Temporary Disability and Family Leave Insurance and may be eligible for benefits.

• Incorporation (Filing a form 1120 with the Federal IRS) : If your LLC is incorporated then all employees are covered for Temporary Disability and Family Leave Insurance and may be eligible for benefits. INC, PC, PA and NA are all designations listed after the company name to indicate it's a corporation. All officers should be considered employees and may be eligible for benefits.

Independent Contractors are not covered for Temporary Disability and Family Leave Insurance. It is important to know if your work or services are classified correctly. Some employers misclassify workers who are employees as independent contractors under the Fair Labor Standards (Act). If you are misclassified as an independent contractor, your employer may try to deny you benefits and protections such as Temporary Disability and Family Leave Insurance.

Learn more about misclassification and independent contractors here.

Gross Misconduct occurs when a worker is discharged for committing an act punishable as a crime of the first, second, third or fourth degree under the “New Jersey Code of Criminal Justice”, N.J.S.A., 2C:1-1, et. If gross misconduct was committed, you will be disqualified from receiving Temporary Disability or Family Leave benefits from this employment. 

Some positions require work to be done in multiple locations throughout the day, such as truck drivers and flight attendants. Your employment should be under the jurisdiction of the state in which your centralized hub is, or where you get your orders from. 

For example, a truck driver may have a truck route with drop off points in multiple states. The state where the driver picks up the truck and takes their orders from before beginning their route, is the state that covers their employment. If that state is New Jersey, they may be eligible for Temporary Disability and Family Leave Insurance.

Since elected officials do not have set hours or an hourly wage, their position is not considered covered employment for Temporary Disability and Family Leave Insurance. If the worker attends any meetings regarding their elected position while claiming Temporary Disability or Family Leave benefits, they cannot receive benefits for those days that the meetings occurred.