Here’s how insurance brokers can help get the 1989 NYS disability benefits law updated
As students across New York State await the end of the school year, insurance brokers specializing in New York State disability benefits have something else on our minds: the proposed increase to NYS disability benefits (DBL insurance).
For those of us waiting for the NYS Assembly to pass legislation that would bring DBL benefits in line with Paid Family Leave in NY, the days are going as slowly as they are for school children watching the clock until the final bell.
When will New York finally increase DBL benefits, which have stayed the same since 1989?
The DBL Center called out NYS legislators in December 2024 for, once again, failing to increase the state disability benefit beyond the maximum of $170 per week. Last year, proposals to increase New York State disability benefits failed to pass as part of the state’s 2024 budget.
The budget that passed, however, did include paid prenatal leave as part of New York’s Sick Leave Act. This gives pregnant people up to 20 hours of paid protected leave, which can be taken incrementally by the hour, for prenatal care including doctor’s visits.
Bill 84 Proposes a DBL Increase, Additional Changes to the Decades-Old Law
Proposed Assembly Bill 84 takes another look at temporary disability insurance benefits. Bill S172/A84, sponsored by Assemblymember Michaelle Solages and State Senator Jessica Ramos, passed in the New York State Senate and is awaiting approval by vote from the NYS Assembly.
The bill seeks to ultimately increase the DBL benefit to the same rate as Paid Family Leave in New York, which is 67% of an employee’s average weekly wage.
An increased benefit would go into effect in 2027, rising gradually through 2030, the same way PFL was phased in over time. The legislation also includes a minimum benefit amount of $100 per week, unless an employee’s wages fall under that amount. In that case, they would receive full pay while they collecting disability.
The bill includes additional provisions, including the ability for workers to take intermittent leave rather than having to file a claim for consecutive weeks. Employers would also need to keep health insurance coverage in force for employees taking medical leave.
Proposed DBL Benefit Increase: By the Numbers
If Bill A84 passes, the disability benefit in NY would rise for claims filed on or after January 1, 2027.
For the first 12 weeks, employees would collect 55% of their average weekly wage, with a maximum benefit of 50% of New York’s average weekly wage.
In 2028, the benefit for the first 12 weeks increases to 60% of AWW, capped at 55% NYSAWW. On January 1, 2029, the benefit rises to 67% of AWW, capped at 60% of NYSAWW.
On January 2030, the benefit matches NY PFL, with benefits for the first 12 weeks at 67% of AWW, capped at 67% of NYSAWW.
Beginning in January 2027, claimants would also receive 30% of their average weekly wage (AWW), capped at 55% of NYSAWW, for weeks 13 to 26 of DBL. The Workers’ Compensation Board may increase this benefit up to 67% of NYSAWW.
DBL Premiums May Also Rise with Bill A84
The bill also raises the limit on how much employers can collect from an employee’s paycheck to fund DBL premiums. Currently, employers can deduct 0.5% of an employee’s weekly wage, up to 60 cents a week.
Under Bill 84, the cap would increase to $2.20 per week in 2027. In 2030, the maximum would rise to no more than half a percent of an employee’s wages, capped at 40% of the combined average of employer and employee contributions from the year prior.
It’s likely a premium rate increase would also happen, although that isn’t outlined in the bill.
It’s also likely that privatizing DBL with a top-rated insurance carrier will offer cost savings. Brokers who help their clients privatize DBL coverage will also gain access to:
- Personalized claims service
- Faster, more convenient cash benefit payments
- No seven-day waiting period to collect benefits
- Savings on group ancillary benefits
Why DBL Needs An Increase
In a world where everything seems to continue going up in price, the NYS disability benefits law has kept the DBL rate the same for 36 years. If the benefit kept pace with inflation, it should have increased to at least $438.43 weekly in 2025, given an average inflation rate of 2.67% per year.
That’s still not enough to sustain a primary breadwinner who suffered an injury or illness off the job, especially if they have a mortgage or a family. Bill A84 would provide a living wage to New York workers unable to work due to short-term medical conditions.
Write to your NYS assemblyman and encourage them to pass Bill A84 this June.
Enrich DBL For Your Clients Now
Taking action on Bill A84 is important. But don’t wait to enrich disability benefits for your clients through a private policy today. January 2027 will be here before we know it, but for employees who could suffer a life-changing injury or illness that prevents them from working, enriched DBL coverage can make a huge difference in their lifestyle.
FAQs
What is the maximum weekly benefit for disability in NY?
In 2025, New York State sets the maximum weekly benefit amount for short-term disability at $170 per week.
Who is not eligible for NYS disability benefits?
Most full- and part-time employees in New York qualify for NYS disability benefits. Those who are not eligible for NYS DBL include independent contractors and people collecting unemployment insurance benefits.
Are employers required to provide disability in NY?
Most New York employers are required to provide short term disability benefits to employees who have worked at least four consecutive weeks. Exceptions include some religious, charitable or educational institutions, and government jobs.
