New York DBL and Paid Family Leave insurance
Workers' compensation covers injuries at work. New York also requires you to insure your employees against illness and injury away from work, and to fund their paid leave to care for a new child or a sick relative. It's one policy, it costs little, and the Workers' Compensation Board treats not having it as a crime. I place it for employers across the Capital Region.
New York requires almost every employer to carry statutory disability benefits (DBL) and Paid Family Leave (PFL) coverage once it has had one or more employees on 30 days in a calendar year; the obligation starts four weeks after that 30th day, and buying the policy when you hire is the simple way to meet it. DBL pays 50% of wages up to $170 a week for 26 weeks for off-the-job illness or injury; PFL pays 67% of wages up to $1,228.53 a week in 2026 for up to 12 weeks of family leave, funded by an employee payroll deduction of 0.432%. Both are written on one inexpensive policy.
The two benefits side by side
| Feature | DBL (statutory disability) | Paid Family Leave |
|---|---|---|
| Covers | The employee's own off-the-job illness or injury, including pregnancy | Time off to care for others: bonding, family illness, military deployment |
| Benefit | 50% of wages, max $170/week | 67% of wages, max $1,228.53/week (2026) |
| Duration | Up to 26 weeks | Up to 12 weeks |
| Waiting period | 7 days | None |
| Funded by | Employer (may deduct up to $0.60/week) | Employee payroll deduction, 0.432% (2026) |
| Job protection | Not under DBL itself | Yes |
Enriched DBL
The $170 statutory maximum hasn't changed in decades and is a fraction of most employees' wages. Carriers offer enriched DBL that raises the weekly benefit, commonly to $500 to $1,000 or more, and sometimes extends the period. For a small employer it's one of the cheapest meaningful benefits to add, and it's often what makes a job offer competitive. See also individual disability income insurance for owners and higher earners.
Buy it with the workers' comp
The 30-day clock is easy to lose track of. Binding DBL/PFL on the day you hire means the coverage is simply there when the obligation begins, the PFL deduction starts on the first paycheck, and there is nothing to remember. The first-employee guide lays out the whole sequence.
Employer obligations beyond the policy
- Post the notice of compliance (Form DB-120.1) where employees can see it.
- Include PFL in the employee handbook and provide the required written notice.
- Collect and remit the PFL contribution accurately; over-deduction must be refunded.
- Continue health insurance during PFL and reinstate the employee afterwards.
What I need to quote
- Number of employees and total payroll.
- Whether you'd like enriched DBL priced.
- Your workers' compensation carrier, since bundling sometimes helps.
- Disability and Paid Family Leave benefits coverage requirements (NY Workers' Compensation Board)
- Introduction to the Disability Benefits Law (NY WCB) — 50%, $170, 26 weeks; employee contribution one half of one percent of wages, no more than 60 cents a week; benefits subject to Social Security and Medicare taxes; read October 16, 2026
- Paid Family Leave 2026 updates (NY WCB) — 0.432%, $411.91, $1,228.53; NYSAWW $1,833.63; maximum total benefit $14,742.36; read October 16, 2026
- Is disability and Paid Family Leave coverage required? Household employers (NY WCB) — domestic workers: 20 or more hours a week and 30 or more days in a calendar year for the same employer; read October 16, 2026
- Publication 525, Taxable and Nontaxable Income: sick pay; sickness and injury benefits (IRS) — sick pay from a state sickness or disability fund, or from an insurer when the employer paid for the plan, is income; if both pay, only the amount due to the employer's payments; read October 16, 2026
- Paid Family Leave: employers
Common questions
Short answers to what people ask before they call.
Still have a question? Call (518) 902-8822 or book a call.
Who has to carry DBL and PFL?
Any employer that has had one or more employees in New York on at least 30 days in a calendar year, with the obligation starting four weeks after that 30th day. Part-time employees count. Sole proprietors and partners without employees are exempt but may elect coverage. A household that employs a nanny, housekeeper or other domestic worker needs coverage once that worker works 20 or more hours a week for it on 30 or more days in a calendar year. Certain public employers and some religious and agricultural workers have separate rules.
What does DBL pay?
50% of the employee's average weekly wage, capped at $170 a week, for up to 26 weeks in any 52-week period, after a seven-day waiting period, for a disability that isn't work-related, including pregnancy. Employers can buy enriched DBL that pays more, which is a popular low-cost benefit.
What does Paid Family Leave pay in 2026?
67% of the employee's average weekly wage, capped at $1,228.53 a week (67% of the 2026 New York State average weekly wage of $1,833.63), for up to 12 weeks, a possible total of $14,742.36, to bond with a new child, care for a family member with a serious health condition, or handle matters when a family member is deployed. Leave is job-protected and health insurance continues. Combined DBL and PFL is limited to 26 weeks in a 52-week period.
Who pays for it?
DBL is employer-paid, though the employer may deduct up to 60 cents a week from employees. PFL is funded entirely by an employee payroll deduction, 0.432% of wages in 2026 up to an annual maximum of $411.91, which the employer collects and remits through the policy premium. The employer's cost is the DBL portion plus administration.
Are New York disability benefits (DBL) taxable?
Largely, yes, for federal income tax. IRS Publication 525 says sick pay from a state sickness or disability fund, or from an insurance company when your employer paid for the plan, is taxable income, and that when both you and your employer pay for a plan, only the part of the benefit due to your employer's payments is taxable. With statutory DBL the employer pays the premium and may take up to 60 cents a week from the employee, so the share tied to the employer's payments is taxable and the share tied to the employee's own after-tax contributions isn't. The Workers' Compensation Board adds that DBL benefits are subject to Social Security and Medicare taxes.
What are the penalties for not having it?
Failing to provide DBL/PFL coverage is a misdemeanor, with fines of $100 to $500 or up to a year's imprisonment for a first offense and higher fines for repeat violations, plus liability for the benefits themselves and Board penalties. The Board cross-checks unemployment insurance filings to find uncovered employers.
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