Disability Insurance Law in the State of New York
- The New York Disability Insurance Law requires all employers within the state to purchase disability coverage for their workers if they have at least one employee working for 30 days within the last year. The Disability Insurance Law does not require the 30 days to be continuous. Employees who work for employers automatically qualify for coverage after completing a state form and obtaining medical substantiation. New York also requires employers to purchase mandatory workers' compensation coverage, but the short-term disability coverage is separate from that obligation. Employers who fail to understand their legal responsibilities may face criminal sentences punishable by jail and large monetary fines for each period of noncompliance.
- Nonprofit religious, educational institutions and charitable organizations must comply with the state's disability law providing coverage for all of their employees except ministers, priests, Christian Science readers and rabbis. Additionally, employers do not have to cover teachers who teach religious education. Businesses that only hire independent contractors are not required to purchase insurance coverage. The issue of whether an employer has an employer-employee relationship or independent contractor relationship is subject to judicial interpretation.
- The Disability Benefits Law may be similar to employment policies when employers provide paid sick days and compensation during short-term absences from employment. However, under the state's mandatory coverage law, these types of fringe benefits do not count as disability coverage if employers do not purchase formal disability insurance policies or obtain self-insured status. Only when the employer obtains coverage through an authorized provider or obtains self-insurance certification does he comply with the New York State Disability Benefits Law.
- Employees may begin receiving coverage after being absent from work for at least one continuous week. They must notify their employer of their absences during their illness to qualify for coverage. Employers have legal obligations to provide their disabled employees with certification forms. Once employees complete their applications and certifications, they may begin receiving cash assistance for up to 26 weeks or while they are unable to work. Employees may receive half of their weekly salary every two weeks; however, under the state's law, employees cannot receive more than $170 weekly as of 2011. Employers are not required to provide health insurance benefits or pay their medical bills.
- Since disability and employment laws can frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
