Short-Term Disability (STD): Quick Definition

Short-term disability (STD) is a benefit that replaces a percentage of an employee’s income when they are temporarily unable to work due to a non-work-related illness, injury, or medical condition. It typically covers periods from a few days up to 26 weeks, bridging the gap between sick leave exhaustion and a return to work — or the transition to long-term disability (LTD) if recovery takes longer.

STD is not required by federal law in the US, but it is a common employer-sponsored benefit and is mandated in several states.

Key Takeaways

• Short-term disability replaces 50%–70% of an employee’s income during qualifying medical absences.
• The typical benefit period ranges from 3 to 26 weeks, depending on the plan.
• STD is not mandated federally, but states like California, New York, New Jersey, and Rhode Island require paid family and medical leave programs that function similarly.
• STD and FMLA serve different purposes — FMLA provides job protection, STD provides income replacement.
• Employer-sponsored STD plans vary widely in eligibility, benefit amounts, and waiting periods.

What Is Short-Term Disability?

Short-term disability insurance provides income to employees who cannot perform their job duties due to a qualifying medical condition. Common qualifying events include:

• Surgery and post-operative recovery
• Serious illness (e.g., cancer diagnosis, cardiac events)
• Pregnancy and childbirth recovery
• Non-work-related injuries (e.g., fractures, ACL tears)
• Chronic condition flare-ups that temporarily prevent work

STD does not cover work-related injuries — those fall under workers’ compensation. It also does not cover voluntary procedures (e.g., cosmetic surgery) or conditions that are not expected to prevent work for a defined minimum period.

How STD Differs from Related Benefits

Benefit	What It Covers	Income Replacement	Job Protection
Short-term disability	Non-work illness/injury	Yes (50%–70% of salary)	No
FMLA	Serious health condition	No	Yes (12 weeks)
Workers’ compensation	Work-related injury/illness	Yes (varies by state)	Yes
Long-term disability	Extended disability beyond STD period	Yes (50%–70%)	No
Sick leave	Any absence (policy-dependent)	Yes (100% of salary, capped)	Varies

STD provides income but not job protection. FMLA provides job protection but not income. This is why they are often used together — an employee on STD typically also takes FMLA leave simultaneously, receiving partial income while their position is held.

How Short-Term Disability Works

Eligibility

Eligibility requirements vary by plan but commonly include:

• Employment status. Full-time employees are typically eligible. Part-time employees may be excluded.
• Waiting period. Most plans have an elimination period of 0–14 days before benefits begin. This functions like a deductible period.
• Employment tenure. Some plans require 6–12 months of employment before eligibility.
• Medical certification. A physician must certify the employee’s inability to work.

Benefit Amount and Duration

Factor	Typical Range
Benefit amount	50%–70% of base salary
Maximum monthly benefit	$5,000–$10,000
Elimination period	0–14 days
Benefit duration	3–26 weeks
Maximum benefit period	26 weeks (6 months)

A common structure: the employee receives 60% of their pre-disability salary, with a maximum of $6,000 per month, starting after a 14-day elimination period, for up to 26 weeks.

Example Calculation

• Employee’s annual salary: $65,000
• Monthly salary: $5,417
• STD benefit rate: 60%
• Monthly STD benefit: $3,250
• Elimination period: 14 days
• Benefit duration: 26 weeks

If the employee is out for 20 weeks, they receive $3,250 × 4.3 weeks = $13,975 in total STD benefits (assuming monthly payment). The first two weeks are unpaid due to the elimination period.

Employer-Sponsored vs. State Programs

Employer-Sponsored STD

Many employers offer STD as part of their benefits package. These plans are typically insured through carriers like MetLife, Unum, or Aflac. Key employer decisions include:

• Fully insured vs. self-insured. Fully insured plans transfer risk to the carrier. Self-insured plans (common in large organisations) assume the risk internally.
• Voluntary vs. employer-paid. Some employers pay the full premium; others offer STD as a voluntary benefit where employees pay.
• Coordination with other benefits. The plan should address how STD interacts with sick leave, PTO, and FMLA.

State-Mandated Programs

Several US states have their own short-term disability or paid family and medical leave programs that provide income replacement during qualifying absences.

State	Program	Benefit Rate	Duration
California	SDI (State Disability Insurance)	60%–70%	Up to 52 weeks
New York	PFL (Paid Family Leave)	67%	Up to 12 weeks
New Jersey	TDI (Temporary Disability Insurance)	85% (up to max)	Up to 26 weeks
Rhode Island	TDI	Up to $1,008/week	Up to 30 weeks
Hawaii	TDI	58.33%	Up to 26 weeks
Massachusetts	PFML	Up to $1,129.82/week (2026)	Up to 20 weeks
Connecticut	PFML	95% of minimum wage (lower earners)	Up to 12 weeks
Washington	PFML	Up to 90% of wages	Up to 12 weeks

In states with mandatory programs, employers may be able to credit their private STD plan against the state requirement, avoiding duplicate coverage.

STD vs. FMLA: How They Work Together

The interaction between STD and FMLA is one of the most misunderstood areas of US employment law.

	STD	FMLA
Purpose	Income replacement	Job protection
Duration	Up to 26 weeks	12 weeks
Eligibility	Per plan terms	12 months employment, 1,250 hours
Employer size	Varies	50+ employees
Pay	Partial salary replacement	Unpaid (employee uses PTO/sick leave)

An eligible employee on STD for a serious health condition is typically also on FMLA leave simultaneously. The FMLA protects their job (or an equivalent position) for up to 12 weeks. If STD benefits extend beyond 12 weeks of FMLA, the employee’s job protection ends, but income replacement continues through the STD plan.

Practical Example

An employee undergoes surgery and needs 20 weeks of recovery.

• Weeks 1–2: Elimination period. Employee uses accrued PTO or takes unpaid leave. FMLA runs concurrently.
• Weeks 3–12: STD benefits pay 60% of salary. FMLA continues to protect the job.
• Weeks 13–20: FMLA is exhausted. STD continues to pay benefits, but the employer is no longer required to hold the position.

This timeline illustrates why coordination between STD and FMLA is critical. Employers should document the interaction clearly in their leave policies.

Designing an STD Policy

Key Decisions

• Eligibility. Full-time only, or include part-time and temporary employees?
• Waiting period. Shorter elimination periods cost more but provide faster income to employees.
• Benefit amount. 50% is the floor; 70% is more competitive. Higher rates improve retention.
• Duration. 26 weeks is standard, but shorter durations (13 weeks) reduce premiums.
• Coordination. How does STD interact with PTO, sick leave, and workers’ compensation?

Communication Checklist

• Distribute a Summary Plan Description (SPD) to all eligible employees.
• Explain the claims process and required documentation.
• Clarify the relationship between STD and FMLA.
• Provide contact information for the claims administrator.
• Review the policy annually for changes in state law or plan terms.

Frequently Asked Questions

Is short-term disability mandatory?

Federal law does not require employers to provide STD benefits. However, several states mandate their own programs: California, New York, New Jersey, Rhode Island, Hawaii, Massachusetts, Connecticut, and Washington. Employers in these states must either participate in the state program or provide equivalent private coverage.

What is the difference between short-term disability and sick leave?

Sick leave is paid time off provided by the employer, typically at full salary, for illness or medical appointments. STD is an insurance benefit that replaces a percentage of income after sick leave is exhausted, usually triggered by a longer-term medical condition that prevents work for more than a few days.

Does short-term disability cover pregnancy?

Yes. Most STD plans cover pregnancy and childbirth recovery as a qualifying medical event. The typical benefit period for vaginal delivery is 6 weeks; for caesarean delivery, it is 8 weeks. Some states (e.g., California, New York) also have separate paid family leave programs that cover bonding time after birth.

Can an employer fire someone on short-term disability?

An employer cannot fire someone solely for being on STD if the leave is protected under FMLA. However, once FMLA leave is exhausted, at-will employment rules apply unless the employer has a separate leave policy or reasonable accommodation obligations under the ADA. Employers should consult legal counsel before making termination decisions during or after STD leave.

How does Leave Balance help manage short-term disability?

Leave Balance tracks leave balances, FMLA eligibility, and absence records in one place. When an employee’s absence extends into STD territory, managers can see the full picture — accrued leave usage, FMLA status, and return-to-work timelines — without switching between systems.