NYS Mandatory Disability
New York is one of the few states that has a mandatory short term disability insurance program. The state requires employers to provide insurance benefits for their employees should they become sick or injured and unable to work. This also includes pregnancy and birth of a child.
The employee is eligible to receive disability benefits 50% of his or her salary up to a maximum of $170/week, not to exceed 26 weeks.
In addition, employers who provide DBL benefits are also required to make Paid Family Leave (PFL) benefits available. Disability and Paid Family Leave benefits cannot be collected at the same time.
Pregnancy and NY Short Term Disability Coverage
Pregnancy-related illnesses and complications are covered under New York’s temporary disability insurance program. Benefits are paid only for the time you are actually unable to work due to pregnancy or childbirth.
If you are pregnant, you are eligible for disability benefits for four weeks before your due date and six weeks after giving birth (eight weeks if you delivered by Caesarean section).
Employers can provide coverage by purchasing policy from a private insurance company or the New York State Insurance Fund (NYSIF) or even by self-insuring.
You May Be Overpaying for New York Short Term Disability Insurance
You probably know that short term disability insurance is mandatory in New York, but just because it is mandatory, it doesn’t mean you have to overpay for it.
Rates can vary from insurance providers by hundreds or even thousands a month depending on how many employees you insure. So you better shop around.
“QUICK TIP: Complete the GREEN form on this page to compare short term disability rates.” Most applications approved within 48 hours.
Here are sample rates from one of our A+ Insurance carriers:
New, Lower Disability Rates for 2024!
Male Employees (1-49) $1.30
Female Employees (1-49) $3.25
You may be overpaying for short term disability insurance. Compare free quotes to see if you can save money.
Our advice is unbiased and we represent the best NY short term insurance companies such as:
- Arch (A+)
- Guardian (A++)
- Hartford (A+)
- Mutual of Omaha (A+)
- Renaissance (A)
- Shelter Point (A-)
- Standard Security (A+)
How Does NY Short Term Disability Work?
Your Disability Benefits are:
- 50 % of your average weekly wage for the last 8 weeks worked
- The maximum benefit is currently $170 per week
- There is a 7-waiting period before benefits begin
- Benefits are subject to Social Security and Medicare taxes
- Benefits are for a maximum of 26 weeks of disability during any 52 consecutive week period
(Click the link below to jump to our Employee Frequently Asked Questions)
How Much Does Short Term Disability Cost?
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.
What States Require 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 – 877-632-4966
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 Employers Need to Know about NYS Disability Benefits Law.
New York requires all employers to provide Mandatory Disability Insurance Benefits to their employees. If you employ only one person for more than 30 days in a calendar year, you need short term disability insurance. These 30 days do not need to be consecutive.
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.
How Private or Self-Insured Disability Plans Work
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.
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 for 26 weeks.
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 Bill Behr at: 914-633-1717 to compare your rates