mandatory disability insurance in NYNew York State Short Term Disability Insurance

Are you overpaying for your New York Short Term Disability Insurance? There is a good chance you are – and don’t expect your broker to tell you.


Short term disability insurance is required if you own a business in NY. It covers your employees for off the job injury or illness. Many employers just pay the bill and never bother to look if their rates have increased or if they can get a better deal.

Compare NYS Short Term Disability Rates.

Most employers buy a short term disability (STD) insurance policy, stick it in the drawer and forget about it. Over time, short term disability prices increase ever so slightly but few employers rarely take the time to compare their rates.

“QUICK TIP: Complete the form on the right side of this page to compare short term disability rates.” Most applications approved within 2 business days.

Not comparing your rates is a big mistake, because like most insurance, policies can vary in price from carrier to carrier. And don’t expect your broker to tell you because he or she is making a commission on the premium.

Are You Paying More For NYS Disability Coverage?

Here are sample rates from one of our A+ Insurance carriers:

Male Employees (1-49) $1.50
Female Employees (1-49) $3.30

Are you Paying more?

You can get a free quote for NYS Mandatory Disability Insurance by calling 800-514-3513 and let us compare your current premium to one of our quality insurance providers. We represent all authorized NYS Mandatory Disability Insurance providers such as:

  • Guardian
  • First Rehabilitation
  • Standard Life
  • Hartford
  • Mutual of Omaha
  • Standard Security

Click the link below to jump to our Employee Frequently Asked Questions

Employee FAQ’s

States Requiring Short Term Disability Insurance

Some states require employers to provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury.

Currently, if your employees are located in any of the following states, you are required to purchase disability insurance:

New York: New York State Workers’ Compensation Board
California: Employment Development Department
Hawaii: Unemployment Insurance Division
New Jersey: Department of Labor and Workforce Development
Puerto Rico: Department of Labor and Human Resources
Rhode Island: Rhode Island Department of Labor and Training

What You Need to Know about NYS Mandatory Disability Benefits Law.

NYS requires all employers to provide Mandatory Disability Insurance Benefits to their employees. Failing to provide coverage is a misdemeanor and carries a $500 fine or up to one year in jail.

Employers may comply with this mandate to make short term disability (STD) insurance coverage available to their employees in one of two ways:

1. Purchase disability insurance from a state approved insurance company for the benefit of his/her employees or,
2. Establish a “Private”, self-insured disability benefits law plan

Complying With The Disability Benefits Law

A New York employer who has one or more employees for at least 30 days in any calendar year shall be deemed a “covered employer” and is subject to the Disability Benefits Law. These 30 days of employment need not be consecutive days but must be work days of employment in one calendar year.

A “covered employer” under the law is required to provide for the payment of Disability Benefits to all eligible employees, which includes full-time and part-time employees.

NYS Mandatory Short Term Disability Benefits Requirements.

Employees must pay the required contributions to the plan and also pay any additional insurance premium that may be required by the insurance company to pay for incurred claims expenses or insurance company administration costs.

Contributions to the state disability plan or to a self-insured disability plan are deductible by the employer and considered taxable income to the employee. Employee contributions to the State Fund are deductible as state taxes, while contributions to a private plan are treated as non-deductible personal expenses.

NYS Short Term Disability Costs

The employee contribution rate is 0.5% of the first $120.00 of weekly wage up to a maximum of $.60 per week or $31.20 per year. The employer contributes the remainder of plan costs, if any costs remain.

How Short Term Disability Benefits Work

Benefits are paid weekly to the employee and are equal to 50% of the average weekly wage of the employee over the last 4 weeks prior to the disability. The maximum weekly benefit is $170.

Benefits become payable on the 14th consecutive day of a disability and continue for up to 26 weeks. The maximum benefit period is 26 weeks disability or during any consecutive period of 52 weeks. Benefits are partially taxable to the recipient depending on the percentage of contribution by the employee.

Enriched DBL Benefit

For only a few dollars a month more per employee, you can give your employees additional disability income with the Enriched Short Term Disability Benefit. After all, how many people can actually pay their bills or live on the basic benefit of $170 a week?

It’s a proven fact that when a person becomes disabled due to sickness or injury, their monthly bills actually increase and not decrease. There are doctor bills, medical tests, special needs equipment, physical therapy and so on.

Some of these expenses could be covered by health insurance, provided the employee still has health insurance coverage. Either way, not very many people in the New York tri-state area could survive on $170 per week.

How Enriched Disability Benefits Work

The Enriched DBL Benefit covers up to 50 or 60% of an employee’s weekly earnings up to a maximum benefit of $850 per week. Only a handful of disability carriers offer this Enriched DBL Benefit:

  1. Arch Insurance
  2. ShelterPoint Life Insurance Company
  3. Standard Security
  4. Wesco

Here’s an example with ARCH Insurance on how you can increase your employees disability benefit by 5 times more for only a few dollars a month.

ARCH Enriched DBL Benefit – $850 per week

Monthly Premium
Male: – $4.08
Female: – $9.21

ARCH Basic DBL Benefit – $170 per week

Monthly Premium
Male: $1.64
Female: $3.71

Call: 800-514-3513 for more information about Enriched DBL

Private or Self-Insured Short Term Disability Benefits Law Plan

1. The employer plan must offer benefits at least equal to the state mandated disability benefits law.

2. The employer can charge the employees the same or less than the state mandated disability benefits law mandated contribution level. Employees cannot be charged more unless there have been improvements in coverage.

3. The employer must agree to cover the balance of the state mandated disability benefits law level of plan costs that are in excess of employee contributions.

4. The employer must agree to provide a guarantee bond, if required by the state.

5. The employer must agree to pay all obligations, including benefits, fines, expenses, and assessments imposed pursuant to the state mandated disability benefits law.

New York Employee Short Term Disability Frequently Asked Questions

What Does Disabled Mean?

You are considered disabled when you are not able to perform your job duties due to an illness or injury

If I Get Hurt on the job, Will I Qualify For Disability Benefits?

No. On the job injuries are covered by Workers Compensation

How Much Disability Benefits Will I Be Able To Receive?

Benefit payments are 50 percent of a claimant’s average weekly Salary up to a maximum of $170 per week

How Long Can I Collect Short Term Disability Benefits?

There is a limit of 26 weeks of benefits during a period of 52 consecutive calendar weeks or during any one period of disability.

Who Determines if I Qualify For Disability Benefits?

The employee must submit to medical evaluations performed by the employer’s or insurance provider’s board-certified physicians. Refusal to submit to an exam may jeopardize a claimant’s benefits

How Soon are Disability Benefits Paid?

After a claim application is properly completed, the first payment should be received within four business days after the 14th day of disability

Are The Costs of Medical Care Included?

No. Costs of medical care are not included but could be covered if your employer offers a group health insurance plan

If I am Working in Another Job, Am I Entitled to Receive Short Term Disability Benefits?

No. If a disabled employee performing any kind of work for compensation or profit, he/she is ineligible to receive benefits

Can I Receive Disability Payments if I am Pregnant?

Yes. If a woman is disabled because of pregnancy, she may be entitled to up to 26 weeks of benefits. Disability can occur at any time during pregnancy.

If I Quit My Job or Get Laid Off, Can I Receive Disability Benefits?

Termination of employment may affect your right to receive Disability Benefits.

Call us at: 800-514-3513 to compare your rates

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