New York! New York!
The New York Statutory Disability Benefit
I often wonder what people find amazing about the state. Is it Central Park, the Statue of Liberty or even the “Big Apple” nickname?
For me, it’s the New York Statutory Disability Benefit and its requirement!
Yes – you read that correctly. The most attractive part of New York, currently, is the New York Disability Benefit Insurance. I came across this when my client received a letter stating they didn’t have the New York Disability Benefit Insurance for an employee they hired in that state. The state then threatened penalties, which you can imagine, was a great concern to the client and me.
Well, lo and behold, when I dug into the issue, I found that New York requires employers to get New York Disability Benefit Insurance if they hire employees in the state of N.Y. This provides temporary cash benefits paid to an eligible wage earner when he or she is disabled by an off the job illness or injury and for disabilities arising from pregnancies.
The Disability Benefits Law provides weekly cash benefits to replace, in part, wages lost due to illness or injury that don’t arise out of, or in the course of, employment. Disability benefits include cash payments only. Medical care is the responsibility of the claimant. It isn’t paid for by the employer or insurance company.
It’s so important that failure to comply with not having this insurance constitutes a misdemeanor punishable by a fine or imprisonment, or both. Additionally, the New York Workers’ Compensation Board may impose penalties in an amount fixed by them. Four other states besides New York require by law some sort of disability benefits purchase. Those states are California, Hawaii, New Jersey and Rhode Island. Their specific requirements differ, but essentially offer the same thing.
The good news is there are several insurance companies that can help get these policies in place, and some even back date policies so the penalties can be avoided. So, if you have a client that’s placing employees in the states mentioned above, please contact our ‘A’ Team to help get those policies in place and avoid noncompliance.
New York! New York! With all of the landmarks and beauty you offer, the one closest to my heart is indeed the New York Disability Benefit Insurance requirement.
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