Can anyone tell me if it's legal in New Jersey to be terminated while out on medical disability and collecting disability insurance? The reason giving for my termination was that I didn't return my FMLA forms back to my employer. However, I did return them and sent them using Certified Mail. The employer states they never received them. I kept all of my receipts. What is the next steps I should take in this matter?

You can file a complaint with the Department of Labor for your employer violating your rights under FMLA. The process to file a complaint may be found at: http://www.dol.gov/elaws/esa/fmla/fc.asp

By the way, a comparison of the federal leave law vs. the New Jersey leave law may be found at: http://www.dol.gov/esa/programs/whd/state/fmla/nj.htm