New York and New Jersey Announce New Premium Rates and Coverage

Father and son on beach

As we return to our offices following Labor Day weekend, the unofficial end of summer, the New York and New Jersey state insurance departments have made some important announcements for business owners and insurance brokers in the two states.

Read on to find out the new premium rates and coverage levels for Statutory Disability and Paid Family Leave plans across the U.S., New Jersey Temporary Disability Benefits (TDB), and New Jersey Family Leave Insurance (FLI).

New York Announces New PFL Employee Contribution

As announced in early 2017, New Yorkers can receive up to 60% of their average weekly wage for up to 10 weeks to care for and bond with a newborn (less than one year old) or newly adopted or newly fostered child, to care for an ill or aging family member, or to take care of the household while a military spouse is deployed. The increased benefit (up from 55% in 2019) comes with an increased premium of 0.270% of an employee’s wages each pay period, not exceeding an annual maximum employee contribution of $196.72.
These rates make NYS PFL benefits some of the most generous in the country. Take a look at this chart to compare benefits and premiums across the U.S.

Policy forms and rate submissions are due October 1, 2019. If you need assistance with PFL coverage for any of your customers, the DBL Center is here to help. As your white-glove, white-label back office staff, we want to make it as simple as possible for your customers to phase in PFL coverage as a rider to their DBL policy and provide you with opportunities to enrich DBL coverage to offer benefits that make good financial sense for all your customers.

New Jersey Announces New Employee Rate for 2020

The New Jersey state insurance fund has also introduced a rate hike increase for 2020, from 17 cents to 26 cents for every $100 in taxable wages. Earlier this year, New Jersey introduced expanded Family Leave Insurance (FLI) benefits as part of its TDB package.

Under the new FLI regulations, the benefits period has expanded from six weeks to 12 weeks, beginning July 1, 2020. In addition, the definition of “family” has increased to include any blood relative of the employee or any individual shown to have a close association that is the equivalent of a family relationship with the employee.

In addition to the rate hike increase, the limit on wages on which taxes are levied for TDB and FLI has increased from 28 times the statewide average weekly wage ($33,700) to 107 times the statewide AWW (approximately $131,100), beginning January 1.

Concurrent with the rate hike, the maximum TDB or FLI benefit has also increased, from $638 to $860 per week. Partial TDB benefits will also be available.

Good News for New Jersey Insurance Brokers

The New York premium and benefits increase is predictable and in line with prior increases since the introduction of PFL. A broker’s best move continues to be selling enriched DBL to provide a benefit that makes sense to top company executives and decision makers within an organization.

The New Jersey hike represents an opportunity for New Jersey insurance brokers to beat the state rate, while providing benefits equal to or better than the state insurance fund, with a higher level of customer service. When New Jersey waived the signature requirement earlier this year, it became easier than ever to get businesses to switch to privatized TDB.

This is the moment New Jersey insurance brokers have waited for; when you break it down, you realize it’s here because of New York’s generous PFL policy.

With family leave enhancements sweeping across the Northeast, employers will want to find ways to stay competitive and recruit working families, millennials, and the future generations of employees. Robust yet low-cost benefits packages, especially in the face of an impending recession, remain one of the best ways to recruit and retain top talent.

Give us a call to take advantage of the white-glove service and support DBL Center offers our tri-state area brokers and expand your book of business as we head into autumn.


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.