Short term disability benefits are designed to provide a paycheck to employees during periods of serious illness resulting in total disability. Many companies offer optional long term disability insurance (often paid by the employee). Short term disability insurance covers the employee during the gap between sick leave and a long term insurance policy.
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Small Business Notes Short term disability (STD) benefits provide income continuation during periods of serious illness resulting in total disability. You are totally disabled if you are unable to perform your job due to major illness or accidental bodily injury. Small Business Notes employees bear no cost for this benefit. It provides up to 180 days of short term disability benefits within a twelve-month period. The employee's total disability period must exceed ten (10) consecutive working days to qualify for STD benefits. All Sick Leave benefits must be exhausted before an employee can request STD benefits. Once the initial ten (10) day waiting period is met, STD benefits will be retroactive to the first unpaid day of absence (given that sick leave benefits are exhausted). Regular full time and regular part time employees of Small Business Notes are eligible for this benefit once they have completed ninety (90) calendar days of service and work at least thirty (30) days per week on a regular basis. Under STD benefits, eligible employees are paid 80% of their normal base salary. This means you will be paid based upon your regular rate of pay excluding overtime, bonus, vacation, and any other accrued paid leave or additional compensation. STD benefits may not exceed 80% of your base salary, unless augmented by available accrued vacation. If you have additional payments from worker's compensation or state disability while you are on STD benefits, which would increase your overall benefits to exceed 80%, your STD benefits will be reduced accordingly. Group health benefits will continue on the same basis as prior to the onset of STD benefits. STD benefits will be subject to all payroll withholding elections of the employee which were in effect prior to the short term disability. It is important that an employee provide their supervisor with the treating doctor's statement as soon as you know an illness or injury will result in an absence greater than ten (10) days. The doctor's statement must identify the nature of your disability and the date you are expected to be able to return to work. Small Business Notes may require a second medical opinion, at its own expense, and periodic recertification. If there are discrepancies in the first and second opinions, we may require a third doctor to render a medical opinion. This third doctor will be selected jointly by Small Business Notes and the employee, and the third opinion will be binding both on us and the employee. Upon returning to work, you must provide a release, or return to work form, from the doctor treating your illness or injury. |
Companies with 15 or more employees are subject to the Americans with Disabilities Act (ADA). If you have an employee on disability and they are able to perform the essential functions of the job, some of the provisions of this law may apply. Further reading on ADA is found on numerous resources on the WWW or consult with your insurance company or legal counsel.
