Short-Term Disability Insurance

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Prepared by:                        Dale Johnson, Employee Benefits Manager
Supersedes:                         1/26/95
Adopted by Council:           10/30/14
Effective:                              10/30/14 


To provide income for employees who are temporarily disabled due to a non work related accident or illness. 


All full-time and part-time regular employees who have successfully completed initial probation are covered by this policy. 


1.         All available sick leave must be used first before being eligible for short term disability pay.

2.         An employee who is disabled due to an accident or illness is eligible for an amount equal to pay at one-half his or her regular rate.

3.         If the disability is a result of an accident, short term disability pay begins on the first full work day following the exhaustion of sick leave.  If the disability is a result of an illness, then short term disability pay cannot begin until at least seven calendar days have passed and all sick leave has been exhausted.

4.         An employee may return to work in a designated light duty position or in his/her normal position at reduced hours.  In either case, the Town will also pay one-half the difference between regular pay and light duty pay or one-half the difference in the pay for reduced hours and pay for normal hours.

5.         Maximum coverage is for 26 weeks per 12 month period with the exception of rehabilitation following a positive substance abuse test, which limits coverage to a maximum of 12 weeks during total employment.  The maximum number of weeks of coverage (per 12 month period) an employee is eligible for is based upon the amount of continuous service with the Town and is set forth as follows: 

Months of Service Coverage
Less than 12 months                                  6 weeks
12-23 months                                             8 weeks
24-35 months                                             12 weeks
36-47 months                                             16 weeks
48-59 months                                             20 weeks
60+ months                                                26 weeks 

6.         Successive disabilities separated by less than two week of full-time work will be considered one disability, unless the subsequent disability is due to a different cause and does not begin before the employee returns to work full time.

7.         Time away from work while receiving short term disability pay may be considered as leave under the Family and Medical Leave Act .

8.         It is the employee’s responsibility to provide sufficient documentation from a qualified physician that substantiates the employee’s inability to work during the period of disability.  Failure to provide this documentation will result in the discontinuation of short term disability pay.

9.         The procedure for implementing this policy is outlined in Standard Procedure 8.10.