New York Short-Term Disability Insurance (DBL)
NY State law requires most employers to provide disability benefits for employees with non-work-related injuries and illnesses. We help you stay compliant.
Need NY DBL Coverage for Your Business?
Get compliant with New York State disability requirements. We make the process simple and affordable.
NY DBL Is Mandatory—Penalties for Non-Compliance
Most New York employers are required by law to provide DBL coverage. Failure to comply can result in personal liability for company officers, penalties of 0.5% of payroll, responsibility for all unpaid benefits, and potential criminal prosecution. The NY Workers' Compensation Board actively enforces these requirements. If you have employees in New York, you likely need this coverage.
What Is NY State Short-Term Disability (DBL)?
New York's Disability Benefits Law (DBL) requires most employers to provide temporary cash benefits to employees who cannot work due to non-work-related disabilities. This includes injuries, illnesses, and pregnancy-related conditions that occur outside of work.
Unlike Workers' Compensation—which covers on-the-job injuries—DBL protects employees who get hurt at home, become ill, or have medical conditions unrelated to their employment. It provides partial wage replacement so employees have income while they recover.
DBL coverage has been required since 1950 and is administered by the New York Workers' Compensation Board. Employers can provide coverage through private insurance carriers or, with approval, through self-insurance.
DBL At a Glance
- •Benefit: 50% of average weekly wage
- •Maximum: $170/week (current)
- •Duration: Up to 26 weeks
- •Waiting Period: 7 days
- •Covers: Non-work injuries/illness
- •Includes: Pregnancy disability
Who Must Provide NY DBL Coverage?
Most private employers in New York are required to provide DBL coverage. Here's how to determine if the law applies to you:
DBL Required For
- Most Private Employers
Once you employ at least one person on each of 30 days in a calendar year
- Part-Time Employees
Covered after working 4+ weeks with 25+ hours per week for employer
- Domestic Workers
If they work 40+ hours per week for one employer
- Out-of-State Employers
With employees who work primarily in New York
Generally Exempt
- Government Employers
Federal, state, and municipal governments
- Certain Nonprofits
Religious, charitable, and educational organizations (with some exceptions)
- Professional Employer Orgs
PEOs may provide coverage for their client companies' employees
- Independent Contractors
True independent contractors (not employees) are not covered
Note: Exemptions have specific requirements. Consult with us to determine your obligations.
Not Sure If You Need DBL Coverage?
We can help you determine your requirements and get you compliant quickly.
DBL vs. Workers' Compensation: What's the Difference?
Both are mandatory for most NY employers, but they cover very different situations:
| Feature | NY DBL | Workers' Comp |
|---|---|---|
| What It Covers | Non-work injuries & illnesses | Work-related injuries & illnesses |
| Example | Broken leg from skiing accident | Broken leg from fall at work |
| Wage Replacement | 50% of wages (max $170/wk) | ⅔ of wages (higher maximum) |
| Medical Benefits | Cash benefits only (no medical) | Full medical coverage included |
| Waiting Period | 7 days | 7 days (retroactive if >14 days) |
| Duration | Up to 26 weeks | Varies; can be longer term |
| Employee Contributions | Up to 0.5% of wages allowed | 100% employer-paid |
| Pregnancy Coverage | Yes (pregnancy disability) | No (unless work-related) |
Important: Most NY employers need BOTH DBL and Workers' Compensation coverage. They protect against different risks and both are legally required. We can help you get compliant with both requirements.
How DBL Works with Paid Family Leave (PFL)
New York employers must provide both DBL and Paid Family Leave (PFL) coverage. While separate benefits, they're typically combined on the same insurance policy.
NY DBL Covers
- ✓Employee's own disability/illness
- ✓Non-work-related injuries
- ✓Pregnancy-related disability
- ✓Recovery from surgery
- ✓Mental health conditions
NY PFL Covers
- ✓Bonding with new child (birth, adoption, foster)
- ✓Caring for ill family member
- ✓Military family leave
- ✓Up to 12 weeks of leave
- ✓67% of wages (higher than DBL)
Common Scenario: New Parent
A pregnant employee may use benefits in this sequence:
Combined, this provides significant paid time for new parents—and you need coverage for both benefits. Most policies combine DBL and PFL.
Understanding DBL Costs
DBL insurance costs depend on your payroll, industry, and claims experience. Employers may offset some costs through employee contributions.
What Affects Your Premium
- •Total payroll - Larger payroll = higher premium
- •Number of employees - More employees = more exposure
- •Industry type - Some industries have higher claim rates
- •Claims history - Past claims affect future rates
- •Coverage enhancements - Optional increased benefits
Employee Contribution Option
NY law allows employers to collect contributions from employees to offset DBL costs:
- ✓Up to 0.5% of weekly wages
- ✓Maximum 60 cents per week per employee
- ✓Collected through payroll deduction
- ✓Optional—employer can pay 100%
Many employers pay the full cost as an employee benefit, but the contribution option helps manage expenses for smaller businesses.
Penalties for Non-Compliance
The NY Workers' Compensation Board enforces DBL requirements. Non-compliance carries serious consequences:
Financial Penalties
- •0.5% of payroll during non-compliance period
- •Minimum $100 penalty
- •Liability for all unpaid benefits employees would have received
- •Interest on unpaid amounts
Other Consequences
- •Personal liability for officers/owners
- •Criminal prosecution possible for willful violations
- •Stop-work orders in severe cases
- •Employee lawsuits for denied benefits
Frequently Asked Questions About NY DBL
What is NY State Short-Term Disability (DBL)?
New York State Disability Benefits Law (DBL) requires most employers to provide disability insurance for employees who become unable to work due to non-work-related injuries or illnesses. Unlike Workers' Compensation (which covers work-related injuries), DBL covers off-the-job disabilities including pregnancy. Benefits are 50% of average weekly wage up to a maximum set by the state.
Who is required to carry NY DBL insurance?
Most New York employers must provide DBL coverage once they employ at least one person on each of 30 days in any calendar year. This includes full-time, part-time, and some domestic workers. Certain employers are exempt, including government entities and some nonprofits, but most private employers must comply.
How much does NY DBL insurance cost?
NY DBL costs depend on your payroll, industry, and claims history. Employers may collect employee contributions of up to 0.5% of wages (maximum 60 cents per week per employee as of current law) to offset costs. Many small businesses pay $200-$1,000 annually, though costs vary based on workforce size and risk factors.
What benefits do employees receive under NY DBL?
NY DBL provides 50% of the employee's average weekly wage, up to the maximum weekly benefit set by the state (currently $170/week). Benefits are payable for up to 26 weeks per disability. There is a 7-day waiting period before benefits begin for most disabilities.
What is the difference between NY DBL and Workers' Comp?
Workers' Compensation covers injuries and illnesses arising from employment, while DBL covers non-work-related disabilities. Workers' Comp is generally more comprehensive and pays higher benefits. Both are mandatory for most NY employers. An employee injured at work would file Workers' Comp; the same employee injured at home would file DBL.
How does NY DBL relate to Paid Family Leave (PFL)?
NY DBL and Paid Family Leave (PFL) are separate but related benefits that employers must provide. DBL covers the employee's own disability; PFL covers time off to care for family members or bond with a new child. Both are typically combined on the same insurance policy. An employee may transition from DBL (pregnancy disability) to PFL (bonding) after childbirth.
What are the penalties for not carrying NY DBL?
Employers who fail to carry required DBL coverage face serious penalties: liability for all unpaid disability benefits, a penalty of 0.5% of payroll during the non-compliance period (minimum $100), possible criminal prosecution, and personal liability for company officers. The Workers' Compensation Board actively enforces compliance.
Related Employer Coverage
NY DBL is just one of several mandatory or important coverages for employers. Consider these related products:
Workers' Compensation
Mandatory coverage for work-related injuries—usually purchased alongside DBL.
Long-Term Disability
Voluntary coverage for disabilities lasting beyond 26 weeks.
EPLI Coverage
Protects against employment-related claims like discrimination and wrongful termination.
General Liability
Essential business coverage for third-party injury and property damage claims.
Important Information
This information is provided for educational purposes only and does not constitute legal advice. NY Disability Benefits Law requirements are complex and subject to change. Benefit amounts and exemptions may be updated by the state.
All coverage is subject to policy terms, conditions, and exclusions. Please consult with a licensed insurance professional to determine appropriate coverage for your specific situation and current legal requirements.
The Stan Steele Agency is licensed to conduct business in New York State. License information available upon request or at the New York Department of Financial Services website.
Get Your NY DBL Coverage Today
Don't risk non-compliance penalties. We'll help you get the right DBL coverage for your business quickly and affordably.
We Make DBL Compliance Easy:
- ✓ Combined DBL + PFL policies available
- ✓ Quick enrollment and certificate delivery
- ✓ Multiple carrier options for competitive rates
- ✓ Help with payroll deduction setup
- ✓ Ongoing compliance support
Serving New York employers since 1969 • Fast enrollment • Experienced compliance guidance
