Need To Know: Employee Disability Program

Your company’s recruitment policies need to be fair and unbiased. This is to build a transparent culture and to avoid lawsuits, in case they feel they have been denied an opportunity due to discrimination or a physical disability.

Over the years, recruitment practices have changed, and employers are willing to make workplaces friendly for the enabled.

Generally, organizations offer two types of disability programs: short-term and long-term. In addition to this, there are some state and federal regulations that every organization should follow.

A survey indicated that 71 percent of employees want short-term disability program, whereas, 66 percent want long-term disability benefits.

Short-term disability program

These policies are offered to employees who are disabled after an accident or an illness. Employees who are unable to resume work after the initial wait period of 1 to 7 days, come under the category of short-term disability plan.

The employer usually provides income to the disabled employee for a pre-determined time; current industry standard is 26 weeks.

How short is short-term disability plan?

These policies usually cover a maximum number of employee’s disability period. Since the disability arises from an injury, illness or even pregnancy, employers can determine the number of days an employee will require assistance. General industry trends indicate that short-term disability coverage lasts for 13 to 26 weeks.

What is a waiting period?

Before your insurance plan starts covering an employee, he/she needs to serve a waiting period of seven days.

Until the waiting period ends, the employee can utilize his sick leaves or paid vacations. If the recovery time surpasses a pre-determined time span, the employee becomes eligible for long-term disability benefits (given your organization offers them) or the policy is discontinued.

Long-term disability program

Longer-term disability policies cover employees who are disabled for longer period of time, generally, 6 months or longer.

How long is long-term disability?

A government survey indicated that employees can receive around 50 to 60 percent of their pay under a long-term disability policy. These benefits can continue until the age of retirement (age of 65) or for a pre-determined time frame. Disabled employees receive the maximum amount of their pay check, based on a specific percentage of their basic compensation, before the disability.

What is long-term disability?

Insurance companies define disability into two broad categories. Either an employee can’t perform tasks related to his job or an employee is unable to perform any type of task related to any occupation.

Your plan can cater to both types of disabilities. For example, for the first 24 months the policy may treat employee’s disability, limited to his current job role. However, after an employee surpasses the given time frame, his disability may be treated as inability to perform any job.

An employee who has served more than one year with an organization is eligible for these benefits. A Social Security Administrator may run an inquiry to determine if the disability claim is true, and then provide coverage to the employee.

Design an inclusive benefits program with help of JS Benefits Group. We are a group of employee benefit consultants and HR consulting firm in Pennsylvania. Our wellness programs and health benefit plans are backed by comprehensive organization and market research and analysis.

Along with designing and implementation of programs, we also provide HR consultation. Call 877 355-6070 and get a custom benefit plan for your company.

By |2018-08-03T07:48:39+00:00September 7th, 2018|Categories: Insurance|
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