Understanding New York State Disability and Paid Family Leave Coverage: What You Need to Know

For employers and employees in New York, understanding New York State Disability Insurance (DBL) and Paid Family Leave (PFL) is essential. These coverages provide financial support to workers who are unable to work due to non-work-related disabilities or who need time off to care for a loved one. Employers are required to provide these benefits, and many businesses look for ways to enhance coverage to better protect their workforce.

In this article, we will break down what DBL and PFL cover, how much employees can receive, who pays for these coverages, and the impact on employers. Additionally, we will explore options for enhancing benefits beyond the statutory limits and how BGES Group can help you secure the right coverage for your business.

What Do New York State Disability Insurance (DBL) and Paid Family Leave (PFL) Cover?

New York State Disability Insurance (DBL)

DBL provides short-term wage replacement benefits to employees who are unable to work due to a non-work-related illness, injury, or pregnancy-related condition. It does not cover work-related injuries, which are handled under Workers’ Compensation.

• Who is covered? Full-time and part-time employees who have worked for a covered employer for at least four consecutive weeks are eligible for DBL.
• Duration of benefits: Employees can receive up to 26 weeks of DBL payments within a 52-week period.
• Common qualifying conditions:

Paid Family Leave (PFL)

Paid Family Leave (PFL) allows employees to take time off while receiving partial wage replacement to:

1. Bond with a newborn, adopted, or foster child
2. Care for a seriously ill family member (parent, child, spouse, domestic partner, grandparent, grandchild, sibling, or parent-in-law)
3. Assist a family member on active military duty

• Who is covered? Employees who have worked for 26 consecutive weeks (full-time) or 175 days (part-time) are eligible.
• Duration of benefits: Employees can receive up to 12 weeks of PFL benefits in a 52-week period.

How Much Can an Employee Receive Under DBL and PFL?

New York State Disability (DBL) Payment Amounts

• The maximum weekly benefit under DBL is $170 per week.
• Benefits begin after a 7-day waiting period and can continue for up to 26 weeks.
• Since the $170 benefit is quite low, many businesses opt to purchase enhanced coverage to provide higher benefits.

Paid Family Leave (PFL) Payment Amounts

• PFL benefits are based on a percentage of an employee’s average weekly wage (AWW), capped at New York State’s average weekly wage (NYSAWW).
• In 2024, PFL pays 67% of the employee’s AWW, up to a maximum of $1,151.16 per week.
• Unlike DBL, PFL does not have a waiting period—benefits begin immediately.

Who Pays for DBL and PFL?

Disability Insurance (DBL) Cost and Funding

• Employers are required to provide DBL coverage for their employees.
• The cost of the policy can be shared with employees, but employees cannot be charged more than 0.5% of their wages, up to $0.60 per week.
• Many employers choose to cover the full cost or purchase enhanced plans to provide higher benefits to employees.

Paid Family Leave (PFL) Cost and Funding

• Employees fund PFL through payroll deductions—there is no direct employer contribution required.
• The 2024 employee contribution rate is 0.373% of an employee’s gross wages, capped at $333.25 per year.
• Employers must collect and remit the premiums to the insurance provider.

What Are the Employer Implications?

Employers must comply with DBL and PFL regulations by:

• Ensuring coverage is in place through a private insurance carrier or the state plan.
• Withholding employee contributions for PFL and remitting payments.
• Coordinating leave requests and ensuring employees receive the correct benefits.
• Avoiding penalties—failure to provide DBL or PFL coverage can result in fines and legal consequences.

Employers who fail to carry DBL can face:

• A fine of $0.50 per employee per week of non-compliance.
• A penalty of up to $500 or 1-year imprisonment.

Enhancing Coverage Beyond the $170 Weekly Statutory Amount

While DBL provides crucial income protection, the $170 weekly benefit is often insufficient. Many insurance companies offer enhanced DBL coverage, which allows employers to provide higher benefits to their employees.

Enhanced DBL Plans May Offer:

• Increased weekly benefits (e.g., $300, $400, or more per week).
• Shorter waiting periods before benefits begin.
• Extended benefit duration beyond 26 weeks.

Employers who upgrade their DBL coverage can:

• Attract and retain top talent by offering better benefits.
• Reduce employee financial stress during medical leave.
• Differentiate themselves from competitors who only provide the minimum state-mandated benefit.

How BGES Group Can Help You Purchase DBL and PFL Coverage

Who is BGES Group?

BGES Group is a New York-based insurance agency specializing in helping businesses secure the best workers’ compensation, liability, and employee benefits coverage.

Why Work with BGES Group?

• We provide expert guidance on DBL and PFL coverage.
• We shop the market to find the best enhanced DBL plans to fit your budget and workforce needs.
• We simplify compliance and help employers avoid fines and legal issues.
• We offer additional insurance solutions, including workers’ compensation, payroll services, and group health insurance.

Contact BGES Group Today

If you’re a New York employer looking for affordable DBL and PFL coverage—or want to explore higher benefits for your employees—BGES Group can help.

Contact Gary Wallach today:

• Phone: (914) 806-5853
• Email: [email protected]
• Website: www.bgesgroup.com

BGES Group specializes in helping New York businesses navigate insurance challenges, ensuring you get the best coverage at the best price.

Final Thoughts

New York Disability Insurance (DBL) and Paid Family Leave (PFL) provide important protections for employees, but many businesses find that the statutory benefits are too low. Employers can enhance DBL coverage to provide better financial support to their workforce.

If you need DBL, PFL, or enhanced disability coverage, BGES Group can help you secure affordable, high-quality coverage. Contact Gary Wallach today to get started!