Self-Insured Employers

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DISABILITY AND PAID FAMILY LEAVE

We have previously advised that New York State will implement a comprehensive Paid Family Leave benefit on January 1, 2018. This new benefit will provide New Yorkers job-protection while offering employees paid leave to bond with a new child, care for a loved one with a serious health condition or to help relieve family pressures when someone is called to active military service. 

With a few exceptions, all private employers must secure Paid Family Leave coverage.

 

Employers currently approved to self-insure for Disability Benefits (DB) will have the option of adding Paid Family Leave benefits to their self-insurance program, provided certain requirements are met.

1. An approved DB self-insured employer choosing to self-insure for Paid Family Leave benefits will be required to file an Application for Self-Insurance for Disability and Paid Family Leave Benefits (DB-150), found on the New York State website at: http://www.wcb.ny.gov/content/main/forms/SIEmpForms/selfins_forms.jsp
• This form must be filed by September 30, 2017.
• Employers will also be required, in most cases, to increase their security deposit.
• The additional security deposit will be communicated to you after the Application (DB-150) has been received and the increase must be posted with the WCB no later than December 1, 2017.
• The amount will be calculated at up to one percent of the employer’s New York payroll.

2. When Paid Family Leave benefits are provided by an employer as a self-insurer, the employer will agree to and acknowledge acceptance of all expenses and liabilities in excess of the collected employee contributions

3. The self-insurer will also acknowledge that under no circumstances shall any employee bear any additional cost above the maximum contribution rate allowed by law.

 4. Workers’ Compensation Board will use the security deposit to pay those benefits, should any employer fail to pay disability or paid family leave benefits to their employees under Paid Family Leave Law. 

We recommend that employers and their insurance representatives review the NYS PFL legislation, regulations and websites for additional information prior to making the decision on whether to self-insure or obtain private carrier coverage for Paid Family Leave benefits and / or contact the LiDAC.com team for assistance