What is New York State’s Short Term Disability?
As a business owner in New York State with employees, you are required to carry a Short-term disability policy.
The policy differs from Worker’s Compensation but both need to be issued at the same time.
The short-term disability policy is designed to help an employee that is injured or becomes ill, outside of work. This coverage is not intended to replace an employee’s full salary. It will, however, give them a small source of weekly income if they are out of work for an extended period.
When does Disability Insurance start?
New York State has stipulations in place that must be met before disability benefits come into play. The employee must have worked for the company for four consecutive weeks before the qualifying illness or injury occurred.
It also should be noted that a mandatory waiting period applies. An individual must be out of work for seven days before benefits begin.
How much coverage do I need?
New York State’s basic disability policy will pay employees a maximum of $170 per week. This is the minimum policy required for employers to take out.
The total time frame that an employee can collect is up to 26 weeks.
Insurance Company’s that specialize in short term disability will also have options that increase the maximum dollar amount that can be paid to their employees. This does however increase the premium as well.
Paid Family Leave
A new coverage that employers are required to have in New York is Paid Family Leave or PFL. This started n 2018 and it provides partial income replacement and job protection for workers who need to take a leave of absence from their employment for one of the covered reasons.
These covered reasons include
- Bonding with a child during the first year of birth
- caring for a close relative with a serious health condition
- Helping with family pressures when someone is called to active military service
The time frame that employees can take off is up to 10 weeks in 2020 and 12 weeks in 2021.
Paid Family Leave coverage is attached to your disability policy. If you are a business owner and notice that your Disability insurance as increased drastically over the past few years, this is why.
What’s Next?
It is imperative that you, as a business owner, have a short-term disability policy in effect at any time you have payroll. If New York State Worker’s Compensation board finds out that you have employees but do not have a Disability or Worker’s Compensation policy if force, large fines can be accumulated.
If you are adding employees or looking to get a better understanding of what this coverage is and what options you have as a business owner then click the button below to schedule a review with one of our trusted insurance advisors.
