Six ways it benefits employers to provide a living wage for workers collecting New York State disability benefits
In spite of talks to increase the amount paid for New York State disability benefits, legislation has still not passed. It’s a bit like waiting for paint to dry … or the New York Mets to score a run. (Forgive the joke, but if you follow me on LinkedIn, you know I’m a Yankees fan!)
Mandatory NYS DBL payments still cap out at 50 percent of an employee’s paycheck, up to $170 per week. This hasn’t changed in decades. And it is not a living wage. It’s not even viable income replacement. And the financial burden
is even greater if the employee is facing medical bills and co-pays or the birth of a newborn and the added expenses that come with a child.
But there is a solution.
It’s important for New York State business owners, CFOs, and HR directors to understand why they should offer enriched DBL coverage in New York to provide employees on temporary disability with a living wage. If you’re a broker, please share this information with your customers to start earning commission on these enriched mandatory benefits today.
What Is Enriched DBL?
Enriched DBL enhances New York State’s statutory disability benefits far beyond the required $170 per week.
Enriched DBL Coverage Encourages Employee Retention
An injured or ill employee on temporary disability shouldn’t have to worry about how they will pay their bills. If your organization isn’t taking care of them, they might use their time off to polish up their resume and look elsewhere.
Robust Benefits Attract Top Talent
Today’s employees, particularly millennials, want to have it all in a job: Salary, flexible hours or work locations, and a robust, customizable benefits package. Providing enriched DBL—even if the majority of your employees don’t use it—lets you beef up your benefits package.
Additionally, New York-based businesses in Manhattan or on the New York / New Jersey border should consider that they are competing with New Jersey-based businesses—which already have a generous mandatory disability benefits package—for top talent. A NYS DBL package that rivals New Jersey’s Temporary Disability Benefits might help you attract the best employees, even across state lines.
Enriched DBL: Low Cost = High Returns
As far as benefits go, enriched DBL provides employers and HR directors with a lot of “bang for their buck.”
With minimal employer contributions, which can be shared with employees at a rate of one-half of one percent of the employee’s wages up to 60 cents per week on pre-tax dollars, employers can offer generous NYS DBL coverage of up to $850 per week. Few benefits cost so little yet provide so much value.
Keep Pace with PFL in NY to Improve Employee Morale and Loyalty
Enhancing DBL benefits to keep pace with PFL in NY will improve employee morale and loyalty.
In states that offer Paid Family Leave, this benefit for new parents and anyone caring for an ill or injured loved one has been shown to improve employee morale and loyalty. More importantly, co-workers don’t mind helping out to cover for employees taking Paid Family Leave.
New York also recently mandated that employers provide paid pre-natal leave — that means more time off for pregnant workers. Their co-workers will need to pick up the slack, and that can lead to job frustration, burnout and low morale. Not that pregnant workers don’t need — and deserve — these benefits … but so do other employees who may be dealing with their own physical hardships such as off-the-job illness or injuries.
Offering enriched NYS DBL benefits for employees who are ill or injured can help ensure co-workers won’t resent those who are out on PFL, because they know they have the same protection should they ever be unable to work.
Additionally, New Jersey employers found that the state’s generous paid leave package helps reduce stress amongst employees who took leave, as well as their co-workers, which can impact the company’s bottom line, according to the National Partnership for Women and Families.
In-Hospital Benefits Boost Income Even Further
Some carriers allow you to add in-hospital benefits to an enriched DBL plan. When a New York employee is in the hospital, they might be looking at extensive medical bills after they are discharged.
Often, other family members will have to take time off work for hospital visits, too. Loved ones of workers who are ill or injured may be able to file a PFL claim for hospital visits — but even PFL doesn’t offer full income replacement.
In-hospital coverage can boost NYS DBL benefits to more than $1,000 per week, taking a bit of the sting out of the costs of needing serious medical treatments in the U.S.
Top Executives Benefit, Too
When you enrich your DBL benefits package in New York, your disability benefits package will increase, too, up to the maximum of $850/week or $1020/week with in-hospital coverage. You can also add an Accidental Death & Dismemberment (AD&D) rider to the policy, with a tiered plan that will provide your C-suite with the most coverage available.
Don’t Wait: Help Your Clients Enrich DBL Now
Find out more about Enriched DBL in New York State in this post, or bind your NYS DBL quote for a company with fewer than 50 lives here.
FAQs
Find out what people are asking about New York State disability benefits.
What is NY State DBL?
NY State DBL is a statutory benefit most employers must provide. It pays up to 50% of an employee’s average weekly wage, up to a maximum of $170 per week. Because this benefit is so low, many employers opt to enrich their DBL benefits through a private insurance carrier.
What does DBL mean on a pay stub?
When New York workers see “DBL” on a pay stub, it indicates the percentage of their pay taken out for their state-mandated New York State Disability benefits coverage.
Who is exempt from NYS DBL?
While most New York businesses must provide DBL coverage to their employees, some individuals and businesses are exempt. Independent contractors and self-employed people are exempt from DBL insurance, as are seasonal workers employed for less than 45 days. Public employees and railroad workers are also exempt. Check with The DBL Center if you aren’t sure if you are required to carry DBL insurance.
Is there a waiting period for NY DBL?
NYS DBL has a waiting period of 7 days for covered employees with a valid claim to collect benefits. The will receive their first disability check on the 8th day.
