§ 43:21-32 — Establishment of private plans.

8. Establishment of private plans. Any covered employer may establish a private plan for the payment of disability benefits in lieu of the benefits of the State plan hereinafter established. Benefits under such a private plan may be provided by a contract of insurance issued by an insurer duly authorized and admitted to do business in this State, or by an agreement between the employer and a union or association representing his employees, or by a specific undertaking by the employer as a self-insurer. Subject to the insurance laws of this State, such a contract of insurance may be between the insurer and the employer; or may be between the insurer and two or more employers, acting for the purpose through a nominee, designee or trustee; or may be between the insurer and the union or association with which the employer has an agreement with respect thereto. Each such private plan shall be submitted in detail to the Division of Employment Security and shall be approved by the division, to take effect as of the first day of the calendar quarter next following, or as of an earlier date if requested by the employer and approved by the Division of Employment Security, if it finds that: (a) all of the employees of the employer are to be covered under the provisions of such plan with respect to any disability commencing after the effective date of such plan, except as otherwise provided in this section; and (b) eligibility requirements for benefits are no more restrictive than as provided in this act for benefits payable by the State plan; and (c) the weekly benefits payable under such plan for any week of disability are at least equal to the weekly benefit amount payable by the State plan, taking into consideration any coverage with respect to concurrent employment by another employer, and the total number of weeks of disability for which benefits are payable under such plan is at least equal to the total number of weeks for which benefits would have been payable by the State plan; and (d) no greater amount is required to be paid by employees toward the cost of benefits than that prescribed by law as the amount of worker contribution to the State disability benefits fund for covered individuals under the State plan; and (e) coverage is continued under the plan while an employee remains a covered individual as defined in section three of this act, but not after the employee may become employed by another employer following termination of employment to which the plan relates; (f) if the employees are subject to the provisions of a collective bargaining agreement, a majority of the employees to be covered by the plan have or shall have agreed to the plan prior to the effective date thereof, if employees are required to contribute to the cost of the private plan and the collective bargaining agreement does not expressly waive the employees' right to a majority election as a condition for the private plan, as provided in section 9 of P.L.1948, c.110 (C.43:21-33). Subject to the approval of the Division of Employment Security, any such private plan may exclude a class or classes of employees, except a class or classes determined by the age, sex or race of the employees, or by the wages paid such employees, the exclusion of which, in the opinion of the division, will result in a substantial selection of risk adverse to the State plan. Covered individuals so excluded shall be covered by the State plan and subject to the employee contribution required by law to be paid into the State disability benefits fund. Notice, in a form approved by the director, of the benefits provided by the private plan shall be furnished to the covered employees by the employer by a conspicuous and continuing posting at the place of employment, and by personal notice to each employee at the time of the establishment of the private plan, at any subsequent time of hire, and within three business days of when the employer knows or should know that the employee may have a need for disability benefits or family temporary disability benefits. This notice shall reflect current rates, eligibility requirements, benefit entitlements, and rights of the employees under a private plan pursuant to the provisions of P.L.1948, c.110 (C.43:21-25 et seq.), including appeal rights to the division, and shall include contact information for the private plan and instructions as to how to file for benefits with the private plan. The division shall permit any application for approval by the division of a private plan to be submitted to the division by means of electronic communication, and permit the use of an electronic signature for any signature required in the application, as the term electronic signature is defined in section 2 of P.L.2001, c.116 (C.12A:12-2). L.1948, c.110, s.8; amended 1950, c.173, s.2; 1953, c.426; 2019, c.37, s.9.