Mandatory NYS Employee Benefits Explained

Starting a new business can be overwhelming, but an exciting new adventure. There are always the thoughts of, “Wow, I can’t wait to succeed!” or “What if something goes wrong?” Both of these thoughts are valid, but Scalzo, Zogby & Wittig, Inc. are here to help support your business on the insurance end of things. 

If you are a business owner who resides within New York State, make sure to purchase insurance coverages that are mandated through NYS.  These mandates include Workers Compensation Insurance (WC), Disability Benefits (DBL), and Paid Family Leave (PFL).

These insurance coverages aren’t just for your full-time employees but for all others working within your business. ly  Part-time, day labor, leased, and borrowed employees, along with unpaid volunteers and subcontractors all fall under your business as they are providing working services to your company. Therefore, they will need to be covered through your business insurance. 

You might wonder, since subcontractors aren’t technically employees, will they need to be covered through Worker’s Compensation? The answer is not always, but they can fall under that insurance bracket as they work a variety of hours for your company, making them an employee! If the subcontractor were to file a WC claim, but you’re unsure the claim falls under WC, contact our team and SZW can lead you through the process.

What are Workers Compensation, NYS Disability Benefits, and Paid Family Leave?

Here at Scalzo, Zogby, & Wittig, Inc., we wanted to provide you with more information regarding these mandatory New York State employee benefits coverages in a brief description.

Workers Compensation

Worker’s Compensation is an insurance coverage that pays medical expenses, lost wages, and rehabilitation costs to employees injured while on the job. Benefits are paid regardless of fault, though there are limitations in the case of injuries resulting from an employee’s intoxication from drugs or alcohol or intent to injure themselves. Filing for WC can be extremely tedious as it can require a lot of information regarding the accident. 

Employers cover the premiums entirely, as mandated through the requirements of WC, with no contributions from employees. The rates are based on the nature of the job. For example, the rates for welders would be higher than those for office workers. The rates are set by the Insurance Service Office. 

However, insurance companies can deviate from these rates. So depending on your business, we may be able to save you money by shopping your Workers Comp with our commercial lines carriers.

WC benefits are classified into different stages. Temporary Total Disability, Temporary Partial Disability, Permanent Total Disability, and Permanent Partial Disability.

New York State Disability Benefits (DBL)

Insurance for the loss of wages due to an off-the-job injury or disability is known as a Disability Benefit. Disability Benefits are equal to 50% of the employee’s weekly income for the last eight weeks worked, with a maximum benefit of $170/week.  

DBL pays a maximum of 26 weeks of disability during 52 consecutive weeks with a waiting period of 7 days. While it does not pay medical benefits, employers can require contributions to the DBL premium from their employees.

To qualify for Disability Benefits, you must be under the care of a physician, chiropractor, podiatrist, psychologist, dentist, or certified nurse midwife.

Paid Family Leave (PFL)

A relatively new required coverage was signed into law in 2016. Employers can have their employees contribute all or some of the premiums. PFL coverage helps when a family member needs medical care because of a health problem, or a family welcomes a new child.

PFL pays for:

• Employees to bond with a newly born, adopted, or fostered child.
• Care for a family member with a serious health condition.
• Assisting loved ones when a spouse, domestic partner, child, or parent is deployed abroad on active military service.

The PFL coverage is usually provided by the DBL carrier as additional coverage.

Here at Scalzo, Zogby & Wittig, Inc. we have been helping businesses manage their insurance coverages for over 30 years. This includes Worker’s Compensation, New York State DBL, and Paid Family Leave.

In addition to those above, we also offer Commercial Property, Liability, Umbrella, and Auto insurance. Our clients rely on us to protect their businesses with quality insurance and advice, and that is what we are here for.

Give us a call and we’ll talk about your business. Since we’re independent agents, we’ll shop our 22 insurance carriers to get you the right protection at the best price. And all of your coverages can be conveniently in one place. Call us today!

Until next time,
Your SZW Team

SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.