If a New York business has out-of-state employees, they should consider a DBL rider to bridge coverage gaps
Are you missing opportunities to provide your New York-based clients with DBL riders for their out-of-state employees? Insurance brokers should review their clients’ risk gaps and help fill them in practical, affordable ways. Clients trust their insurance brokers to help them offer equitable benefits packages that can help with recruiting, retention, and employee satisfaction.
Remote workers across state lines present unique challenges to business owners, especially in regard to managing benefits. Help your clients understand when they need to provide state disability (NY) coverage and when they can offer it on a voluntary basis.
Let The DBL Center help you perform a risk analysis to serve your clients with the coverage they need while boosting your commissionable sales.
Remote Workers? You’re Not Alone
Even with massive return-to-work initiatives across federal and state governments and major tech firms, many knowledge workers in fields like IT, finance, insurance, and marketing continue to work remotely.
The number of teleworkers hovered around 20% in 2022 and 2023, according to data from the U.S. Bureau of Labor Statistics. In early 2025, according to data from Work From Home Research, 13% of full-time employees worked remotely. One-in-four (26%) were hybrid, splitting time between company offices and another location.
After decades of building up our Long Island, New York office, The DBL Center has expanded with out-of-state employees to cover all the regions we serve. Members of our team hail from Pennsylvania, New Jersey, and Connecticut. As PFML initiatives expand across the U.S., The DBL Center team will look toward expanding west, as well.
For employees who work across state lines, New York State Disability Insurance riders provide out-of-state workers with the same DBL benefits that New York workers can receive. This can aid in pay equity and help recruiting, especially for workers in states that have no paid family and medical leave laws in place yet.
Defining Eligible Employees
The workers’ compensation board defines NYS disability requirements for eligible workers. Disability Benefits Law in NYS applies to employees:
- Who live in New York State, even if the employer is based in another state
- Who work in New York State, regardless of where they live
If an employee works in another state, a New York state employer can voluntarily offer DBL, as long as the employee doesn’t qualify for statutory disability benefits in another state (for instance, TDB in New Jersey or TDI in Hawaii).
The employer would pay the DBL tax for that worker or could opt to collect up to one-half of one percent of the premiums (no more than 60 cents per week) from the employee. A DBL rider, an extension of the client’s current DBL policy, will cover this worker.
Out-of-State Employees, DBL Coverage Gaps, and Better Benefits
Let’s take an example that could apply to a New York business with employees across the Northeast.
If the employer has someone who works from home in New Jersey, that worker requires a New Jersey TDB policy. That worker would enjoy New Jersey’s more robust benefits package.
On the other hand, a worker in Pennsylvania, a state that currently has no short-term disability or paid medical leave policy in place, could benefit from a DBL rider for NYS disability benefits.
It would be the employer’s choice to cover the worker in Pennsylvania. Since disability benefits play an important role in retaining employees who need medical or maternity leave, this can be a solid tactic to retain talent within an organization. Employers can choose to offer enriched DBL, so your out-of-state workers have the same benefits as in-house employees.
Confusion and denied claims may arise if out-of-state workers believe they are covered because they work for a New York-based business, but their employer hasn’t requested a DBL rider through their insurance carrier or broker.
It’s also important for employers who operate in other states to ensure their New York-based remote workers have the coverage they need. It’s worth taking the time to review your clients’ policies and remote worker lists to ensure full compliance and coverage across states.
PFL or NYS Disability: Maternity Leave for Out-of-State Workers
Unlike DBL, New York Paid Family Leave applies only to workers in New York State. However, as we explored above, NY employers can offer a DBL rider to employees who work outside of New York. For workers in states with no PFML benefits yet, NYS disability provides short-term leave for 6 or 8 weeks after giving birth, with partial salary replacement.
DBL does not provide time off for bonding or paid leave for any other family member. Out-of-state workers do not qualify for PFL in New York. Plus, NYS DBL benefits are substantially lower than the paid family leave benefit, which is why we recommend enriching DBL for all employees, even out-of-state workers.
Understand the Laws
As PFML programs expand, it’s important for employers to understand their responsibilities. It’s up to insurance brokers to know where to turn to unravel complex issues surrounding remote workers in different states. The DBL Center is always here to answer your questions and help you write the correct policies for your clients.
FAQs
Do employers have to provide DBL for employees outside of NY?
Employers do not have to provide DBL for employees outside of New York, but if an employee isn’t covered by their own state’s statutory short-term disability, the employer may want to consider a DBL rider.
How does DBL interact with Paid Family Leave for remote workers?
Remote workers outside of New York State are not eligible for Paid Family Leave in New York. However, a voluntary DBL rider can provide six weeks of recovery time at partial pay after childbirth.
Is a DBL Rider a tax-deductible expense for NY employers?
New York employers can deduct DBL premiums, including the costs of DBL riders for out-of-state employees, as a business expense.
