Short-term disability insurance (STD)

Definition

Short-term disability replaces a portion of income (typically 60-70%) when an employee can't work due to a non-work-related illness, injury, or pregnancy/childbirth recovery. Benefits typically start after a short waiting period (7-30 days) and continue for 3-6 months.

STD is mandated in five states (CA, NJ, NY, RI, HI) and Puerto Rico via state-administered programs. Elsewhere, STD is voluntary — employers can offer it as a benefit, often at low employee-paid cost.

PEOs typically include STD as part of their benefits stack, often with employer-paid or shared-cost structures.

Common questions about Short-term disability insurance (STD)

Related terms

• Long-term disability insurance (LTD) — Insurance that replaces a portion of income for extended disability periods, often through retirement age.
• Group health insurance — Health insurance purchased by an employer to cover its employees, typically at lower per-employee cost than individual policies.
• Paid family and medical leave — State-administered programs that provide partial wage replacement during family or medical leave — separate from federal FMLA.

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