New York State Disability Benefits Law

August 7th, 2006 Posted by Lindsay

In my research I noticed that New York State requires most of its employers to pay for disability benefits. It is interesting to note that Federal, State, and City government employees are not covered by the disability benefits law. Employees who wish to be paid disability benefits must file within 30 days of the last day of work. In general, benefits totaling 50 percent of the employee’s average weekly wage, up to $170.00, may be paid for 26 weeks. The average wage is figured on earnings over the last 8 weeks of employment. Benefit payments come directly from the employer’s insurance company, beginning after one week (called a waiting week) following the injury or illness.

It’s important that employees note that the disability insurance carrier for the company is probably not the same as the health insurance carrier. To find out who your employer’s disability insurance company is, you can contact the Worker’s Compensation Board. They can forward your information to the correct company even if you don’t know the company name.

I know that an employer in the state of New York who has had 1 or more employees for 30 days in any calendar year is a covered employer who is subject to the disability benefits law. An employer who acquires the business of a covered employer is immediately covered. These “covered” employers, as I understand it, must pay for disability benefits to all eligible employees. They can purchase a policy of insurance, or they can apply to be self insured. Covered employers can deduct as much as 60 cents per week from their employees as a contribution toward the benefits.

A notice of compliance must be posted conspicuously at the business place stating that the employer has made provisions for Disability Benefits to all eligible employees.

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