NY Disability Benefits Law (DBL) & Paid Family Leave (PFL)
New York employers know that NY law requires employers to provide Workers Compensation coverage (hurt on the job) and DBL coverage (hurt off the job) to its employees. Effective January 1st, 2018 the law will be changing to include Paid Family Leave coverage (PFL) as a rider onto the New York employer’s DBL policy.
What is Paid Family Leave? (In Laymen’s Terms)
DBL coverage is taken for YOUR injury or illness while Paid Family Leave is taken to care for someone ELSE. Here’s a good example of how NY DBL & PFL differ.
- A female employee is expecting a new addition to the family and is put on bed rest. This would be covered under the DBL portion of the policy because it is HER own “disability.”
- Same employee gives birth and now needs to care, or bond with, her newborn baby. (maternity leave.) This can be filed under the Paid Family Leave portion of the DBL policy because she is now caring for “someone else in her immediate family.”
Paid Family Leave Implementation
Effective January 1st, 2018 Paid Family Leave (PFL) will be added as a rider onto all NY DBL policies.
- One rate for males & females of .126% of an employee’s average weekly rate. Max of $1.65/wk. for 2018.
- Employers may recoup premium through payroll deducted employee contributions beginning July 1, 2017, to assist the employer’s fiduciary responsibility.
- Premiums are paid on an annual basis by the employer.
- DBL & FPL benefit must be from the same insurance carrier.
DBL Insurance Companies and Rates
The Impact of PFL onto the DBL Policy?
Many insurance carriers, like State Farm for example, are unwilling to “gear up” for the new implementation and will be canceling all of their in force DBL policies. Fortunately, here at Coastal Insurance, we understand the laws and can help employers effortlessly navigate these unchartered waters.
Have a question on New York DBL or New York PFL? Give us a call at 631-782-3175 or submit the form below.