Hiring your first employee in New York: workers' comp, DBL and PFL
The day you put someone on payroll in New York, workers' compensation is required; disability and Paid Family Leave follow four weeks after your 30th day with an employee. The Workers' Compensation Board enforces all three with penalties that can close a business. None of it is expensive for a small employer. All of it is unforgiving if you skip it. Here is the sequence.
The day you put anyone on payroll in New York, workers' compensation is required: full-time, part-time, seasonal or family, with no grace period and no minimum headcount. Disability (DBL) and Paid Family Leave follow once you've had an employee on 30 days in a calendar year, starting four weeks after that 30th day; buy the policy when you hire and it's simply in place. Calling someone a contractor doesn't remove the obligation unless they pass the state's test. The Workers' Compensation Board fines uninsured employers per 10-day period and can issue stop-work orders, so none of this is worth skipping.
The three policies
| Policy | What it pays | Required from | Who pays |
|---|---|---|---|
| Workers' compensation | Medical care and part of lost wages for injuries and illnesses arising from work, plus employers' liability | The first day of employment | Employer |
| Disability benefits (DBL) | Cash benefits for off-the-job illness or injury: 50% of wages up to $170 a week for up to 26 weeks | Four weeks after your 30th day with an employee in a calendar year | Employer, with an optional small employee contribution |
| Paid Family Leave (PFL) | Up to 12 weeks at 67% of wages, capped at $1,228.53 a week in 2026, to bond with a child or care for a seriously ill relative; job-protected | Same as DBL, written on the same policy | Employee payroll deduction: 0.432% of wages in 2026, capped at $411.91 a year |
DBL and PFL are one policy from one carrier. Workers' compensation is a separate policy, sometimes from the same carrier and often not; I place it with private carriers rather than the state fund, and shop both.
Before the first day: workers' compensation
- Get your class codes right. Premium is a rate per $100 of payroll by the type of work. An office manager, a cook and a carpenter are three different codes with very different rates. Misclassifying to save money is discovered at the year-end payroll audit and back-billed.
- Estimate payroll honestly. The policy is priced on estimated annual payroll and trued up at audit. Underestimate and you get a bill; overestimate and you get a refund. Either way you pay for what you actually paid.
- Decide about yourself. Sole proprietors, partners and LLC members aren't automatically covered and can elect to be. A one- or two-person corporation where the officers own all the stock and there are no other employees isn't required to carry coverage at all, but the moment there's a third person, it is. Note that if you're excluded from your own policy and you do work for a general contractor, the contractor's policy must cover you, which is why GCs insist on seeing yours.
- Get the certificate. Form C-105.2 proves coverage to clients, landlords and the Board. Post the notice of compliance where employees can see it.
Within the first month: DBL and PFL
Buy the DBL/PFL policy at the same time as workers' comp so you're never caught by the 30-day rule. It's inexpensive for a small employer and the carrier handles the PFL deduction mechanics. Employees may waive PFL only in narrow circumstances (short-term or very part-time work); otherwise the deduction applies from the first paycheck.
"They're a 1099" is not a defense
The Board applies a control test: who sets the hours, supplies the tools, directs the work, and can the person work for others. In construction the Fair Play Act goes further and presumes employment unless the worker is free from your control, does work outside your usual business, and runs an independently established business of their own. If a person you call a contractor is injured on your job and fails that test, you're an uninsured employer and personally liable for the claim.
What it costs, roughly
- Low-risk work (office, retail counter, salon) can run a few dollars per $100 of payroll for workers' comp; a $40,000 employee might cost a few hundred dollars a year.
- Trades and restaurants run considerably higher, with roofing and framing at the top of the scale. This is where shopping carriers matters most, and where a clean claims history earns you a credit over time.
- DBL/PFL is a small fixed amount per employee for DBL; PFL costs the employer nothing beyond administration.
Rates are set by class and filed by each carrier; I'll quote your actual class and payroll rather than guess.
After you're covered
- Report injuries promptly. The employer's report to the Board (Form C-2F) is due within 10 days of an injury that causes lost time or needs more than ordinary first aid. Late reporting is its own penalty.
- Keep payroll by class. The audit is painless if the records exist.
- Tell your broker when the business changes. A new line of work, a second location or a big jump in payroll all affect the policy mid-term.
What I do
I place workers' compensation and DBL/PFL for small employers across Saratoga, Albany, Schenectady, Rensselaer, Warren and Washington counties, with private carriers, and I handle the certificates, the audit and the claims calls afterwards. If you're hiring for the first time, send me the job description and expected payroll and I'll come back with numbers and the paperwork in the right order. Request a quote, or read the workers' compensation page for the wider picture.
- Is workers' compensation coverage required? (NY Workers' Compensation Board) — who must be covered; corporate officer rules
- Violations of Workers' Compensation Law: penalties (NY WCB) — $2,000 per 10 days
- Disability and Paid Family Leave coverage requirements (NY WCB) — 30 days rule; DBL penalties
- Paid Family Leave 2026 updates (NY WCB) — 0.432% contribution, $411.91 cap, $1,228.53 max weekly benefit
- Identifying an independent contractor (NY WCB) — Construction Industry Fair Play Act
Common questions
Short answers to what people ask before they call.
Still have a question? Call (518) 902-8822 or book a call.
When exactly do I need workers' compensation?
Before the first day anyone works for you. New York requires coverage for virtually every employee: full-time, part-time, seasonal, casual, family members and, for a for-profit business, unpaid volunteers. There is no grace period and no minimum headcount.
When do DBL and Paid Family Leave kick in?
You become a covered employer once you've had one or more employees on at least 30 days in a calendar year, and the obligation starts four weeks after that 30th day. The days needn't be consecutive. In practice: buy the DBL/PFL policy when you hire, and it's simply in place when the clock runs out.
What do these cost for one employee?
Workers' comp is priced per $100 of payroll by class of work, so an office employee costs a fraction of a roofer. DBL is a small flat cost per employee, and PFL is funded by an employee payroll deduction (0.432% of wages in 2026, capped at $411.91 a year) that the policy collects. For a single low-risk employee the three together are often a few hundred dollars a year.
Can I just call them a contractor and avoid all this?
Not safely. New York looks at the actual relationship, not the label or the 1099. In construction, the Fair Play Act presumes anyone working for a contractor is an employee unless a strict three-part test is met. If you control how, when and where the work is done, they're your employee for workers' comp purposes.
What are the penalties?
For workers' comp, up to $2,000 for every 10 days without coverage, stop-work orders, and personal liability for an injured worker's medical bills and wages; failure to carry it can also be prosecuted. Failure to carry DBL is a misdemeanor with fines and possible imprisonment for a first offense. The Board finds uninsured employers through payroll and unemployment-insurance records, not through complaints.
Hiring your first employee?
Payroll estimate, class of work, start date. Coverage can usually bind within days.