Temporary Disability Insurance

Because family and medical leave is typically unpaid, many women who may be eligible for leave cannot afford to take it. Indeed, an analysis by the Urban Institute found that 77 percent of employees who were eligible for and needed leave but chose not to take it made that decision for financial reasons, and 88 percent of this group said that they would have taken leave had some wage replacement been available.¹ The Report Card examines states’ efforts to assist these women by providing some payment during family and medical leave periods through temporary disability insurance (TDI) laws. Such laws are usually provided through expansions of unemployment or disability insurance. Although limited, these laws provide partial wage replacement for employees who are temporarily disabled for non-work-related reasons and represent a first step toward making personal medical leave more affordable.²