Is there a state law that mandates employers to provide some sort of temporary disability insurance?

Yes, NJ is one of only five states that has mandatory disability insurance.

But the state provides the insurance. The employee and the employer each pay a portion. Your portion should be deducted from your paycheck. Here are the 2007 rates. So, it's .3825%, .5% and .0425%, respectively, of your taxable wages.
http://www.nj.gov/labor/ea/ea2007.html

I e-mailed D.O.L. This is their reply:
"Municipal and county governments, as well as state, county and local governmental authorities, commissions, and local boards of education, are not required, by Law, to provide temporary disability coverage for their employees. An individual must be working for a covered employer and both the employer and employee must pay contributions into the State Disability Benefits Fund on an annual basis for coverage. You cannot receive Temporary Disability Benefits if your employer is not required to participate in the program."

Yes, there can be exceptions for the government jobs as allowed by law. They may provide it, but don't have to. In short, if you were not paying for disability, then you don't have it.

-Tim

And if you had told us that you worked for a govt agency, we'd have told you that too. :rolleyes:

It's amazing that the state can create the laws, but doesn't have to abide by them. TYPICAL