Family and Medical Leave Act: New York PFL Rate Change Announcement
NYS PFL rate and benefit increase goes into effect January 1, 2021
As per the original legislation for the NYS Paid Family and Medical Leave Act, New York has announced a rate change and benefit increase for NYS PFL to go into effect January 1, 2021.
Beginning in 2021, employees can collect up to $971.61 through NYS PFL benefits. This increase completes the phased introduction of the Paid Family Medical Leave in New York that took place over the past three years.
In accordance with the rate increase comes a premium increase of 87% – from 27 cents to 51 cents. Out of that total rate, .005% is to fund the PFL quarantine payments.
History of NYS PFL
First introduced in 2017 as a mandatory benefit written as a rider to statutory short-term disability in NY, Paid Family Leave in NY will be fully phased in by January 1, 2021. At that time, the benefit will provide 67% of an employee’s Average Weekly Wage (up to the NYS PFL maximum amount) for up to 12 weeks to:
• Bond with a newborn, adopted or foster care child joining their family in the past 12 months
• Care for a seriously ill family member
• Manage the home while a spouse is deployed
Brokers can use our handy PFL calculator in our Paid Family Leave Resource Center to determine their customers’ premium payments.
Helping Your Customers Understand the Difference Between NYS PFL and Paid Family Leave for Covid-19 in NY
It’s important to understand that employees cannot claim NYS PFL for coronavirus. If schools close again in the fall, leaving parents with few childcare options, they cannot claim NYS PFL for coronavirus to stay home with their children.
However, the Families First Act for pandemic may entitle employees to certain benefits if they are unable to work due to school closures because of an outbreak or because of quarantine measures.
According to the Department of Labor, covered employees may receive:
• Two weeks paid sick leave at the employee’s regular pay rate if they are quarantined or experiencing coronavirus symptoms
• Two weeks paid sick leave at 2/3 pay to care for a person who is quarantined or to care for children under 18 whose school or childcare provider is closed due to coronavirus
• Up to 10 weeks paid expanded family and medical leave in New York at 2/3 the employee’s regular pay to care for a child whose school or childcare provider has closed due to the pandemic. For an employee to qualify for extended leave, they must have 30 calendar days of employment on record.
To help mitigate unauthorized PFL claims, The DBL Center has introduced a Covid-19 claims pre-screening software for carriers.
Is It Time for Your Customers to Enrich DBL?
The rate increase for NYS PFL puts an even wider gap between disability insurance in NY payments and PFL rates. As you notice your customers about the Paid Family and Medical Leave Act increase, it’s a great time to remind them to enrich DBL coverage for:
• Faster, more flexible payouts
• Increased benefits
• Additional in-hospital coverage as an option
The NYS DBL rate remains at just a $170 per week for 26 weeks. Enriched DBL can offer up to 60% salary replacement, with weekly maximums between $200 and $850. Plus, you’ll get the service you expect from The DBL Center and access to our Broker Dashboard: Net Revenue Tracker to manage your accounts seamlessly from anywhere you might be working.
If you or your customers have any questions regarding the Paid Family and Medical Leave Act – New York premium and rate increase, reach out today. In these uncertain times, The DBL Center is here to help you navigate PFL claims in NY, retain customers, and increase commissions.
Privatize NJ Temporary Disability Insurance: As Easy as 1-2-3
Have your customers privatized NJ temporary disability insurance for potential cost savings and superior customer service?
As we reported in October 2018, the State of New Jersey waived the signature requirement for business owners to obtain privatized New Jersey TDB coverage. This opened the door for brokers to write privatized NJ temporary disability insurance to provide customers with:
- Potentially lower rates when bundled with other coverage
- Superior customer service from a private carrier
- Faster payouts, choice of payment methods
- Choice of carriers
- Easier claims process
- Less red tape
By law, premiums must be the same or lower than NJ temporary disability insurance written through the state. At the same time, benefits packages for New Jersey TDB must be the same as – or better – than state benefits.
State Increases Premiums for NJ Temporary Disability Insurance
New Jersey has always had a robust disability benefits package. In January 2020, New Jersey TDB payouts increased to 66.67% of a worker’s average weekly salary, up to $667 per week through June 30, 2020.
As of July 1, 2020, the benefit grows to 85% of a worker’s average weekly salary, capped at $881 per week.
With these benefit increases come a change in premium payments, too.
Employees now contribute .26% on the first $134,900 of earnings, with a maximum annual contribution of $350.74. Employers have a different taxable wage base than employees. Employers contribute based on employees’ earnings, with a cap of $35,000.
Is It Time for Business Owners to Privatize New Jersey TDB?
If your customers have not privatized New Jersey TDB yet, now’s the time. The next deadline to shift policies from New Jersey TDB written by the state to a private plan takes place June 15, 2020.
We can make it easier than ever for you to help your clients privatize New Jersey TDB – and grow your book of business with a statutory benefit with automatic renewals.
Just follow this simple, three-step process.
1. Instruct your customers to obtain form AC-174.
Brokers can no longer download the AC-174 form for their customers, and your insurance wholesaler also can’t provide it for you. Employers first must visit the New Jersey Department of Labor website and fill out the Employer Application.
This form replaces the previous TWES form. If your customer has already registered, they can go here to log in. From either location, they can download the AC-174 form and fill it out.
The census can help you obtain an accurate quote so there are no surprises for your customer when premiums are due.
2. Provide the AC-174 to DBL Center so we can shop policies through our network of top-rated carriers.
The DBL Center does all the work for you from here. We will shop policies and leverage our industry relationships and volume to find the lowest premiums. You may find your customers can save even more by bundling New Jersey TDB with ancillary benefits like vision, dental, and life insurance.
3. Write the policy and track your commissions through our Broker Dashboard: Net Revenue Tracker.
Once we’ve secured the best coverage and lowest rates we can find for your clients, it will be an easy sell. After all, what business owner would want to pay more through the state and miss out on concierge-level service and faster payouts?
New Yorkers have benefited from private statutory benefits for years. It’s time New Jersey business owners enjoy the same flexibility and superior service they can get from The DBL Center and our dedicated New Jersey rep and brokers.
Let us help you write the policies for your New Jersey clients. You’ll gain access to our proprietary Broker Dashboard: Net Revenue Tracker, where you can track your commissions, renewals, and pending cancellations to improve customer retention. You’ll be able to view your book of business at a glance and access carrier portals with a click.
The world seems to be changing here in the Northeast U.S. every day. The service you receive from The DBL Center is one thing you can always count on.
DBL Center Helps Its Carriers with COVID-19 Pre-screening Software
Within the first few days of the coronavirus pandemic and the New York On Pause order, DBL Center President and CEO Michael Cohen felt the same as many of those in the insurance business did.
“When I first got news of this being a reality in New York, which is now a hot spot, I felt like I was back up against a wall,” he recalls. “I was nervous.”
He sprung to action immediately, though. He took what he learned from his decades in the statutory insurance industry and his knowledge of what technology can accomplish to create a solution to slow the onslaught of PFL claims. “I felt I had to do something to mitigate the claims,” Cohen says.
Within days of schools and businesses closing across New York State, and shortly after, through Massachusetts and New Jersey, Cohen and The DBL Center launched the COVID-19 Pre-Screening Software for PFL Claims.
PFL or FFCRA? COVID-19 Pre-Screening App Pre-Qualifies Claims
A tool for insurance carriers to manage PFL claims that may not qualify, the COVID-19 pre-screening software requires employers to answer a series of questions to determine if their PFL claim is valid before requesting a claim form from the carrier. Many statutory PFL claims actually qualify for federal help under the Families First Coronavirus Response Act (FFCRA), which was enacted April 2, 2020.
The DBL Center also created a document to help show when an employee may qualify for PFL and when an employee would qualify for FFCRA aid, instead.
“Even though the changes related to PFL and FMLA [in Massachusetts] have been clearly stated, you’re still going to have some confusion at the employer level in terms of what is a valid COVID claim and what is not a valid COVID claim,” says Charles Callery, Regional VP for Lincoln Financial, one of DBL Center’s many preferred carriers. “I thought the software was perfect for that scenario.”
He added that he also sees it having long-term applications once the pandemic ends. “In general, it can help cut down on some of the administrative costs that we incur, and that others occur, taking in paper claims. I bet the industry still sees the majority of our claims in paper form, versus electronic, and this is a good first step to enter the electronic environment. It’s something the industry could use, because it pre-qualifies a lot of claims upfront.”
Following in the Footsteps of the Broker Dashboard Net Revenue Tracker
The Broker Dashboard Net Revenue Tracker was the first technological innovation from The DBL Center, an electronic version of the paper and pen ledger that Founder David Cohen brought to every meeting.
Designed specifically for DBL Center brokers, the Broker Dashboard helps agencies track cancellations and pending cancellations, new policies, and commissions, at a glance. A cloud-based app that gives brokers actionable insights to improve retention rates, the Broker Dashboard brings David Cohen’s paper ledger into the digital age and delivers it to the hands of every broker.
Michael Pellegrino, Lincoln Financial sales representative, reminisced about the way DBL Center tracked revenue when he first entered the industry. “I remember I’d come into your father’s office,” he tells Michael Cohen in the latest Rep Roundtable video. “He’d put down his pen and paper. He was keeping everything in order, but how time-consuming it must have been. “The fact that you took that pen and paper ledger and made that electronic is awesome!”
Watch the Video to Learn More
In addition to discussing the technology that sets The DBL Center apart, Cohen, Callery, and Pellegrino reminisce about summer get-togethers and talk about how the economy and the industry have changed in the past 20 years. Michael Cohen also reveals his secret to surviving the pandemic … all in the latest Rep Roundtable, brought to you by The DBL Center.
Federal “Families First Act” Should Relieve Pressure on PFL Claims Amidst COVID-19 Pandemic
In an attempt to keep the economy moving and provide Americans with the financial relief they need during the COVID-19 pandemic, the Federal government has introduced the “Families First Coronavirus Response Act.”
Beginning April 2, this act provides emergency paid sick leave benefits to employees unable to work for a variety of reasons. Employees may be eligible for paid leave if they are unable to work because they are:
- In quarantine or isolation as a result of the COVID-19 pandemic
- Exhibiting symptoms of COVID-19 and in quarantine
- Caring for someone in quarantine or isolation as a result of COVID-19
- Have children in schools or daycare that have closed because of the pandemic
Employers with fewer than 500 employees must provide two weeks’ worth of paid sick leave. Employers will receive tax credits to offset these costs, hopefully minimizing the financial impact on their business.
Employees are also entitled to up to 80 hours of paid sick time at 2/3 the regular rate of pay, and an additional 10 weeks of paid family leave if the employee is unable to work because they need to care for a child whose school or childcare provider is closed for reasons related to the COVID-19 pandemic.
It’s important to note that this paid leave coverage is from the federal government and is not related to NYS PFL.
The legislation also ensures that employees do not have to use any other paid time off in lieu of federal paid leave benefits. Employers also cannot mandate that employees find replacement workers.
NYS PFL Claims in Light of Coronavirus Pandemic
Until April 2 when Families First goes into action, New York State has stepped in to help employees with COVID-19 Emergency Paid Sick Leave, compensated in many cases through New York State DBL and PFL benefits. To help employees stay afloat during this challenging time, the state has waived the five-day waiting period before PFL benefits kick in.
Employers with fewer than 10 workers and less than $1 million in annual net income will still rely on DBL and PFL benefits for their employees, paid concurrently for a combined $2,884.62.
Those with 10 or fewer employees but net revenue exceeding $1 million, or employers with 11 to 99 employees must provide workers with at least 5 days paid sick leave, not counting any PTO they have accrued in the past. After that, employees can make a concurrent PFL / DBL claim for paid leave from Day 6 onward.
Businesses with 100+ employees and public employers are fully responsible for full salary continuation for a minimum of 14 days.
PFL programs only pay out for the intended duration of the quarantine period, which is 14 days. However, if the employee has not exhausted their paid leave from New York State by April 2, those benefits will end regardless. Employees will have to file a federal claim to begin collecting benefits again, this time under the Families First Act. Benefits under the Families First Act apply to companies with fewer than 500 employees.
Stimulus for Business Owners During the Pandemic
It is not easy balancing the economic well-being of our nation with the health and safety of our residents. It’s a challenge many business owners grapple with, as well, during this trying time.
In addition to lowering the federal interest rate, the U.S. government has introduced – or is in the process of introducing — legislation that will help small and large businesses stay afloat while we fight the pandemic with social distancing and isolation.
Last week, the Federal Reserve introduced the Money Market Mutual Fund Liquidity Facility, a program that lends money to banks to purchase assets from money market funds. Lending will not affect bank capital requirements, according to finance site Investopedia.
The government also introduced the Term Asset-Backed Security Loan Facility (TALF), enabling the purchase of asset-backed securities backed by auto loans, student loans, and small business loans to unfreeze credit and help stabilize the economy throughout the pandemic and during the economic recovery period afterwards. These measures will run until September 30, 2020, unless they are extended at that time.
The Fed is also working on a Main Street Business Lending Program. We will reveal details as they become available.
Ultimately, avenues will be available to keep large and small businesses afloat and give them access to the funds they need through loans and tax credits. Here at DBL Center, we will do our best to keep you apprised of changing legislation as it pertains to our brokers and their customers.
Stay safe, stay healthy, and know that the DBL Center is here, as always, to serve as your back-office staff as we get through these trying times together – remotely.
Brokers’ Coronavirus Questions about Short Term Disability, Answered
In the midst of the coronavirus pandemic, business owners in New York and New Jersey may be wondering if short-term disability insurance will cover their absence from work if they are diagnosed with the virus and must stay home from work.
They might also wonder if they can make a disability claim if they have not been diagnosed with the virus but were placed under a precautionary quarantine.
Finally, with schools closing across the country, they might wonder if they can make a Paid Family Leave (PFL) claim to stay home and care for school-age children if they don’t have other childcare arrangements.
These are dilemmas many Americans are facing today. DBL Center is working hard to provide our brokers with the answers they need to give their clients’ guidance about what does, and what does not, constitute a short-term disability claim when it comes to the coronavirus pandemic.
The policies of our carriers do vary, but you can always reach out to one of our team if you or your clients have urgent questions. You can reach us 24/7 through the new chat feature on our website and we will get back to you as soon as possible.
Coronavirus and Short Term Disability Policies: What You Need To Know
In short, a coronavirus diagnosis or a quarantine related to the pandemic does not constitute automatic approval of a short-term disability claim in New York or New Jersey. Some policies from certain carriers, however, may carry quarantine provisions.
Short-term and long-term disability policies typically do not include treatment for a cold or the flu under short-term disability coverage. If an employee is sick and unable to work due to COVID-19, these claims will be determined on a case by case basis, depending on the severity and length of the illness. In some situations, cases requiring hospitalization may qualify for short-term disability in New York and New Jersey.
Claims submitted with a diagnosis of Coronavirus will be evaluated based on all applicable contract provisions. The insured will need to provide proof that they are under the care of a Health Care Provider that can certify the disability and unable to perform their job duties either in the work place or at home via remote access.
PFL and the Coronavirus
Similarly, covered employees cannot make PFL claims to care for children over a year old who are home from school because the school closed as a precautionary measure. Since the virus doesn’t seem to be affecting children severely, it would be unusual for a parent or guardian to require a PFL claim to care for a child who is ill from the virus, unless the child is immune compromised. Again, that would be decided on a individual basis depending on the length and severity of the illness, as with any cold or the flu.
Working from Home During the COVID-19 Pandemic
DBL Center understands that, at this time, many of our brokers may be working from home to limit the spread of the virus. Here at DBL Center, we will remain open and are doing everything to maintain the clean and sanitary conditions or our workplace and protect our employees.
Fortunately, DBL Center is also set up to work remotely. We have employees in New York and New Jersey offices who frequently connect virtually, and our cloud-based systems transition well to a work-at-home environment.
Our brokers can even Bind DBL Over 50 lives right from any internet-enabled computer, whether at home or in the office. Our exclusive broker Dashboard gives our brokers access to all their policies and preferred carriers from any internet-enabled device, as well.
Throughout the pandemic and after, the DBL Center will continue to be your back-office staff, answer any questions related to disability coverage and the coronavirus pandemic, and help you bind DBL policies from home.
Massachusetts Family and Medical Leave Act Opens Doors for Brokers to Privatize Coverage
Massachusetts becomes the fourth state in the Northeast to mandate benefits under a paid family and medical leave act
DBL Center is ready to offer Massachusetts insurance brokers incredible savings on PFML plans under the new Massachusetts Paid Family and Medical Leave Act.
The MA Paid Family and Medical Leave Act applies to individuals who need time off:
• Due to a serious health condition
• To care for a newborn, newly adopted, or new foster child within the first year of the event
• To care for family while a spouse is deployed in the Armed Forces
• To care for a family member of any age with a serious health condition
Help Your Customers Privatize Massachusetts Family and Medical Leave Act Coverage
As in New York and New Jersey, states which have offered short-term disability and paid family leave for several years, business owners in Massachusetts have the option to privatize their FMLA policies for substantial cost reductions.
By law, private FMLA plans must offer benefits of the same amount and duration – or better – than plans underwritten and paid for by the state. That’s why it’s important for business owners to find a source they can trust to write their family and medical leave act coverage in Massachusetts. And that’s where DBL Center insurance brokers come in, offering stellar customer service and lower premiums thanks to the relationships their wholesale general agency has developed over five decades.
Bundle PFML to Save Even More
PFML is a stand-alone benefit, but not every carrier can write PFML as a stand-alone policy. DBL Center has the industry connections and the volume to help Massachusetts insurance brokers get the best deals for their customers.
DBL Center delivers white-glove service, low premiums, and superior benefits packages. Your clients can save even more by bundling FMLA coverage with group ancillary benefits like dental, vision, and group life / AD&D.
DBL Center Enhances Focus on Customer Service and Technology
As testament to the company’s dedication to customer service and education, DBL Center recently launched a Massachusetts Paid Family and Medical Leave Act Resource Center on its website.
DBL Center also recently introduced 24/7 live chat on its website. Simply type in the chat box and a knowledgeable representative will answer your questions about the Massachusetts Paid Family and Medical Act, short- or long-term disability insurance, and group ancillary benefits.
“Massachusetts in the fourth state in our region to introduce paid family leave. As experts in short-term disability and paid family leave in New York, New Jersey, and Connecticut, DBL Center is poised to become the number one source for brokers to privatize PFML in Massachusetts for their customers,” says DBL Center President and CEO Michael Cohen. “We’re looking forward to the profit potential the Massachusetts Paid Family and Medical Leave Act presents to our brokers.”
On the Mic with Mike: Selena Kutschera Talks About PFL, DBL and the Benefits of the Broker Dashboard
Working with the top insurance wholesaler in NY gives Selena a chance to make a difference for brokers
Selena Kutschera, DBL Center’s Director of DBL and TDB never actually applied to work at DBL Center. She joined the family when DBL Center acquired competitor Combined DBL, a competitive insurance wholesaler in NY, in 2014.
How she got the job at Combined DBL, straight out of college with no insurance industry experience, is quite a story.
“I found the job listing in the newspaper,” she tells DBL Center owner and president Michael Cohen. “I begged for an interview, but they had already closed out their interviews because they knew who they were going to hire.”
Kutschera didn’t stop pushing for the interview, however, and, ultimately, got the job. Through her hard work and perseverance, she’s become a leader in wholesale TDB and DBL sales.
It was this tenacity that impressed DBL Center founder David Cohen at the time of the acquisition. “That was the kind of personality my father was looking for,” Michael Cohen recalls. “I remember him saying, ‘I don’t know if we’ll get the deal, but Selena will join us.’ We did make the deal and here we are, five years later.”
Read on to learn how Selena Kutschera is helping DBL Center brokers manage the challenges of PFL and prepare for new opportunities in New Jersey.
Then watch the video to find out Selena’s (second) favorite word, what musician she’s not-so-secretly obsessed with, and what she’d be doing if she wasn’t serving the DBL and TDB insurance needs at one of the top insurance wholesalers in NY.
Michael Cohen: What’s the most exciting thing that we’ve done as a team, in your opinion, since the acquisition?
Selena: The program – the Broker Dashboard. Just coming together and building something, changing the game.
Michael: How has that been an upside for you?
Selena: We can track now. We can track the business. We can track what we’ve lost, what we’ve gained, the brokers, who’s writing, who’s not writing. It just makes it easier.
Michael: Can you describe the process we use when we get together and track retention and new business?
Selena: When we look at our book through the Broker Dashboard, we look at what we can keep out of what’s lost. Our cancellations. We know DBL’s a moving target. Your DBL’s come on, they come off, there are non-pays all the time. That’s the first thing we address, the non-pays. Can we get them reinstated? If we can, that puts business back into the books.
Any time coverage is replaced, we want to find out why it was replaced. Was it something we lost? Did the broker lose it? Did they replace it on us, and why did they replace it? We have to analyze what happened—and why—to get that business back.
Michael: What has the feedback been from the brokers since we implemented the dashboard?
Selena: They’re surprised about their non-pays and what’s cancelled and what’s not.
Michael: Everyone thought Paid Family Leave was going to be a home run, but in the beginning, it wasn’t. Why? And what have you been doing to help overcome those challenges?
Selena: It just added another layer of tracking. Who doesn’t want to pay their PFL [rider]? Who didn’t think they needed Paid Family Leave? They pay the DBL; they don’t pay the PFL. That’s really been the issue. Now, we’re getting the complaints that the insured made the payment, but they only paid a portion of it, or they shortchanged it. So now it’s a matter of them understanding how to pay the bills.
Mike: What do you feel is the biggest dilemma in the overall statutory environment? You’re in the trenches and you’re also involved in commissions. What’s an issue for us that’s outside of our control as a wholesale insurance broker in NY?
Selena: I guess what’s outside of our control is just the insureds making payments. That’s out of our control as an insurance wholesaler in NY. Is the $170 [weekly] benefit in New York State for disability low? Absolutely.
What I do find is some employers want to buy up and some employers don’t want to hear it. I agree with the buying up because the reality is the Paid Family Leave is for somebody else—to take care of a baby, child, or family member—and the disability is for yourself. And if you need to go out on disability, why do you need to go out at a $170, when the PFL benefit is $750 and change? It’s $752 [for 2019].
Mike: Are you excited about what’s happening in Jersey? Explain that.
Selena: Absolutely! Jersey just lifted its signature requirement—there’s no more signature requirement to move to a private carrier. So, it makes it easier for us to write this product, as 98% of it sits with the state right now. And the benefit is going up tremendously.
If you’re shopping for a new insurance wholesaler in NY or NJ or need help writing TDB or DBL, let Selena Kutschera and DBL Center help you. Reach out today.
Are You Selling DBL Coverage and Ancillary Benefits to Your Customers Who Need It?
Coastal Insurance offers tips to expand your book of business with strategic cross-selling of home insurance, DBL coverage, and ancillary products
By David Clausen, Coastal Insurance
If you’re like most P&C brokers, NYS DBL and NJ TDB insurance aren’t your only niches. Most brokers sell a variety of lines, whether it’s healthcare, business insurance, or personal lines of coverage like home insurance.
But you may not be thinking of ways to cross-sell your lines to expand your book of business and increase your commissions without cold calls or prospecting for new clients.
When you get in the habit of consultative selling, which includes getting to know your customers, their businesses, and additional insurance needs they may have, you’ll discover avenues to increased profits.
Mandatory coverage like workers’ compensation and NYS DBL coverage, along with enriched DBL, provide excellent upsell opportunities. Many business owners don’t realize they need this coverage even if they only have a few employees. Even if they know about statutory DBL coverage, they may not recognize the opportunities available with enriched DBL and ancillary benefits.
As their trusted insurance broker, you can help make sure they are protected from nearly any contingency. Chances are, you are already taking some of these steps. But are you closing the deal?
These tips, garnered from years of experience selling home insurance and other personal and business lines to Long Island-based customers, can help you expand your book of business.
1. Look for opportunities to upsell complementary insurance lines by getting to know your customers.
In Coastal’s niche market of home insurance for high-net-worth homeowners, many of our best clients also own their own businesses. This means they need workers’ compensation insurance and statutory disability coverage in New York State.
Ask your customers, “Who is currently writing your statutory DBL coverage?” to uncover opportunities.
With the introduction of Paid Family Leave as a rider to DBL, they might be looking to shop their policy around, since some carriers have stopped providing DBL.
2. Don’t forget about your customers who hire domestic employees.
Most Coastal customers who aren’t business owners are c-level executives, celebrities, and other high-net-worth individuals who may hire domestic employees to help run their households. A lot of people don’t know that workers’ compensation and NYS DBL coverage is mandatory in New York for full-time domestic employees or for domestic employees who live in your home, even if they don’t work a full 40-hour week.
This includes nannies, au pairs, housekeepers, gardeners, chefs, drivers, personal assistants, and anyone else who works for an individual. Even if people may treat their nannies or housekeepers like family, the State of New York classifies them as domestic workers or residence employees – and they need to be insured as such.
There can be hefty fines for failing to provide the proper insurance coverage for domestic workers, not to mention the liability if an employee gets hurts on the job. Brokers are doing a service to their customers by letting them know what employee coverage is required.
As with any job, providing ancillary benefits to domestic workers can also help improve retention rates and reduce sick time.
3. Discuss the potential for ancillary benefits.
Whether your customers are business owners seeking to hire the best employees, or individuals with a team of domestic help, they may not have considered ancillary benefits as a low-cost way to recruit and retain employees.
Benefits like Group Life, vision, and dental coverage are still highly sought after by workers. In a Harvard Business Review study, 88 percent of employees said they would consider accepting a job with a lower salary if the position had better health, dental, and vision benefits than the job with the higher pay.
Explore these possibilities with your customers, and they will look to you as a trusted business resource rather than just someone selling insurance products.
4. Educate your customers about enriched DBL.
NYS DBL coverage provides a bare minimum to help an employee who is ill or injured (while not on the job). DBL pays out just 50 percent of an employee’s salary up to $170 per week for 26 weeks.
Enriched DBL is a powerful retention tool for middle managers who exceed the maximum payout but may not have private disability insurance or a savings account to help get them through a medical emergency.
With the introduction of Paid Family Leave as a rider to DBL coverage in New York, many employers are looking to enrich DBL benefits in order to provide coverage comparable to PFL for employees who don’t have, or plan to have, families or may want a robust benefits package for themselves.
PFL was the big news in the insurance industry in 2018, but many people still aren’t aware of the policy changes. Stay on the forefront, educate your customers, and they will trust you to write their policies for personal and business insurance.
5. Offer the best rates by bundling coverage.
When you take advantage of The DBL Center’s carrier relationships, you can bundle lines to provide your customers with the best rates for DBL, ancillary benefits, and more.
Why would they go to any other broker if you’ve positioned yourself as a one-stop-shop for their business and personal lines of insurance coverage?
NYS Brokers: Are You Prepared for PFL in 2019?
What brokers, HR directors, and company executives need to know about PFL in 2019
The new year is almost upon us, and that means more changes for HR directors, business owners, and insurance brokers in New York, once again, as they get up to speed on PFL in 2019. Look for PFL contributions to increase along with the payout and total weeks of leave permitted with benefits.
What’s New for PFL in 2019
PFL benefits will be phased in until they reach the maximum payout of 67 percent of an employee’s Average Weekly Wage for 12 weeks in 2021.
For 2019, the maximum allowable deduction will be 0.153 of the employee’s average weekly wage. Benefits will equal 55% of an employee’s AWW for 10 weeks, up from eight weeks in 2018. The benefit will max out at $746.61 weekly.
It’s important to note that wages are no longer taken with a weekly max. If someone is making $3000 a week, they will pay $3000 x $.00153 – $4.59 weekly deduction until their salary reaches the $70,569.72 max. Then they stop paying for the year.
You can use our handy PFL calculator to determine PFL premiums for your company – or for your customers – based on the number of employees eligible for PFL and the total annual payroll base.
What Brokers and HR Professionals Need to Know About PFL in 2019
Policyholders will have to reconcile PFL premiums for 2018 as part of the necessary premium calculation steps, similar to how it is done for DBL. Brokers who use the DBL Center’s free broker dashboard can easily help their customers reconcile premiums with figures from the database.
If you need help with this important step, contact the DBL Center for guidance on setting up and using the Broker Dashboard to calculate premiums, track renewals and cancellations, and much more.
In addition to the above changes, the state of New York has provided new DBL and PFL posting notices to hang in a prominent spot where employees can view them.
HR directors and company owners should ask their brokers for a new 120 Posting Notice and a DB120.1 Certificate of Insurance.
DBL Center brokers can contact our office for links to these forms to provide to your clients.
Keep Learning About PFL
2018 was a transition year for DBL brokers in New York, and PFL proved to have a steep learning curve.
The DBL Center has provided the resources our brokers need to stay on top of PFL, including webinars, handouts, and our online PFL resource center.
Be prepared to answer all your customers’ questions about PFL in 2019 by browsing our Paid Family Leave Resource Center, which has been updated for the new year.
You may also like these articles that can help your customers better understand PFL in the workplace:
Learn how PFL and DBL are related, but different: DBL vs PFL
Learn how PFL is different from FMLA: PFL vs. FMLA
Help your customers ensure they are in compliance with DBL: PFL Compliance
Calculate PFL premiums for 2019: PFL Calculator
Remember, the DBL Center is here to help answer all your questions about PFL in the new year.
Are You Losing Customers Because They Don’t Understand PFL Billing?
Paid Family Leave became a fact of life in New York very quickly. The statutory benefit, written as a rider to DBL coverage, is ethically responsible and financially needed for New York families. But business owners and brokers weren’t prepared for the mayhem that PFL billing would bring.
I sat down with our President and CEO Michael Cohen so he could explain the challenges of PFL and how DBL Center has found solutions to these challenges for its brokers.
What has been the greatest challenge you’ve faced with PFL?
Once we got past the initial customer education aspects of PFL – letting our brokers and their customers know about this new benefit – we faced the additional hurdle of PFL billing. The New York State government implemented this policy to be phased in over four years, without proper recourse when it comes to giving carriers or brokers the information they need to calculate costs or to bill DBL with a PFL rider correctly.
This has resulted in a higher than normal level of non-pay notifications. New York businesses, large and small, are having their DBL policies cancelled due to billing errors and inconsistencies stemming from this misinformation and miscommunication.
Here at The DBL Center, we are tracking our brokers’ policyholders who are currently in non-pay status, and sharing that information with the broker, so they can fix the issues and increase their book’s retention.
Writing new policies is one thing, but growing a business is not just about how much money you make – it’s about how much money you keep.
Tell us how The DBL Center has stepped in to support brokers and face these challenges around PFL billing?
Behind the scenes, the DBL Center has been working, just as our brokers’ accounting departments have, to find ways to accurately bill PFL.
I began an audit one year ago while coming up with a snapshot of my agency’s statutory book of disability in New York to have a benchmark of what to expect. This put me in a better position to finalize the Broker Dashboard and Net Revenue Tracker, which emanated from the manual methods my father, founder David J. Cohen was using to balance his general ledger.
I realized I could not only turn something antiquated around, but also convert the database we used for our audit into a free Dashboard given to my producers, allowing them to track revenue and policy status for DBL, PFL, and ancillary benefits.
The launch of the dashboard on September 26, 2018 represents an important piece in solving the PFL puzzle.
The Net Revenue Tracker, its more robust companion app, allows brokers to track all policies within their brokerage – not just those purchased through and managed by The DBL Center.
With the PFL rate going up by 24% in January, what can brokers expect in the future?
Quite honestly, if carriers can’t accurately bill PFL, our brokers will be looking at even more unhappy customers when the rate rises.
Our Broker Dashboard provides a solution. In addition to tracking revenue for DBL policies and ancillary benefits, the Broker Dashboard lets brokers know when a policy has been cancelled or is pending cancellation.
Sometimes, the customer has gone out of business, moved out of New York, or decided to move their business to another agency due to no fault of the broker. That’s important information for a broker to be aware of.
For those policies listed as “cancelled for non-payment” or “pending cancellation,” PFL billing errors may be to blame.
So the Broker Dashboard gives producers the information and knowledge they need. Where do they go from there? How can they fix those billing errors to retain their customers?
That’s where DBL Center can help. Thanks to our extensive knowledge of PFL and our relationships with carriers, we can get to the heart of your customers’ PFL problems. We can prevent those policies from cancelling or even have policies reinstated, while helping to preserve important customer relationships.
Your customers trust you. Our brokers can trust DBL Center to navigate PFL until the program starts to run itself, resulting in streams of reliable passive income.
Our Broker Dashboard helps you find out where you’re losing money, and DBL Center’s legendary white-glove service can help you make it right.
Aside from the obvious revenue, why is it so important for brokers to retain their DBL / PFL clients?
We know that implementing PFL hasn’t been the easiest thing our brokers have ever faced. We know this because the DBL Center has been tackling the same challenges. When our brokers make money, we make money. We’re all in this together.
You can continue to look at DBL as either a challenge – or an opportunity.
By continuing to sell DBL and letting DBL Center service the policies through our experienced back-office staff, you have the opportunity to show your customers the true value and worth of relying on your brokerage. Business owners need DBL and PFL coverage. If they don’t get it from you, they will find another broker willing to provide it.
You can use our Broker Dashboard to stay proactive and solve your customers’ PFL problems – potentially even before your policyholder is aware of an issue.
Let DBL Center help you provide your customers with answers to all their PFL billing questions, and you will maintain their trust. They will continue to rely on you for workers’ compensation insurance, major medical, and ancillary lines of coverage.
You’ll watch your bottom line continue to rise as your book of business grows.
It all begins with having the tools on hand to retain your current customers and our Broker Dashboard, combined with our white-glove customer service, can help our brokers stand out from the competition.
Want to learn more about Broker Dashboard and Net Revenue Tracker? Reach out to us now.