How Short-Term Disability/Paid Family Leave Protects Your Employees

As a Central New York employer, you know how important it is to protect your employees and your bottom line. You want to offer your staff great benefits, but you must also consider the costs and compliance.

You know that your employees are your most valuable asset. They ensure you have a smooth-running and efficient business. But what happens when one of your employees can’t work due to a non-work-related illness or injury? Or when they need to take time off to care for a new child or a sick family member?

You may have heard of short-term disability (STD) and paid family leave (PFL). But you may not be sure what they are, how they differ, and how they function in your business.That’s why we’re here to help. Horan offers short-term disability and paid family leave insurance in New York State. We help businesses like yours navigate the complex world of employee benefits.

In this article, we’ll explain what short-term disability and paid family leave are. We’ll explain how they protect your employees and how they benefit your business. And we’ll give you tips on establishing these benefits in your workplace.

How Short-Term Disability and Paid Family Leave Function in New York State

Short-term disability and paid family leave are two types of monetary help. They help workers needing time off from work for certain reasons.

Short-Term Disability Explained

Short-term disability pays part of employees’ income. But only if they can’t work due to a non-work-related sickness or injury.

For example, Jim falls from a ladder while installing flood lights at home. Suffering a broken leg from that fall puts Jim out of work. After the seventh day, Jim can apply for short-term disability. That’s because there’s a seven-day waiting period before benefits begin.

To qualify, employees have to meet the following:

• Your company has employed them for at least 4 weeks (full-time workers). Or 25 days (part-time workers).
• They work the number of hours that make up the normal work week for your company.
• They have paid into the STD insurance fund.

The STD payout in New York State is 50 percent of the employee’s average weekly wage, up to a max of $170 per week. The benefits run for a max of 26 weeks in a one-year period.

Paid Family Leave Explained

Paid family leave lets employees take paid time off from work to:

• Spend time with a new child, whether by birth, adoption, or foster care,
• Look after a family member who is very sick, or
• Support a family member in the military who is about to go on active duty.

For example, if Julia has a baby, adopts a child, or has a sick parent, she may qualify for paid family leave. The same applies if Frank needs to take time off to spend a week with Kim before she serves in the Navy overseas.

To qualify, employees have to meet the following:

• Your company has employed them for at least 26 weeks (full-time workers). Or 175 days (part-time workers).
• They have worked more than 20 hours per week (full-time employees). Or less than 20 hours per week (part-time employees).
• Each time an employee gets paid, they must pay 0.455% of their total post-tax earnings as a contribution. The most they can pay is $399.43 for 2023.

How much money employees get from paid family leave in New York State depends on:

• The year they take it,
• How much money they make in a week, and
• How much money people in New York State make in a week on average.

In 2023, if an employee takes paid family leave, they get 67 percent of their weekly pay. But no more than 67 percent of the average weekly pay in New York State.

For 2023, the New York State Average Weekly Wage is $1,688.19, meaning the max weekly benefit was $1,131.08. This is $62.72 more than the max weekly benefit for 2022.

Short-term disability and paid family leave are for different reasons. Employees use short-term disability when they’re sick or hurt. They use paid family leave when they need to care for their family. Another difference is the start of the benefits. Short-term disability has a waiting period before the benefit takes effect. Paid family leave usually does not. But for both, employees must submit claim forms and provide proof of eligibility.

The Workers’ Compensation Board has more about short-term disability and paid family leave.

The Positive Effect of Short-Term Disability and Paid Family Leave on Your Employees

Short-term disability insurance can help employees with unexpected health challenges in three ways:

• Giving them supplemental money to help pay for things they need, like food, rent, or bills.
• Helping them keep their health insurance to get the care and medicine they need.
• Helping them focus on their health to get better and return to work. Some policies may
  also have services that help employees with their recovery.

Paid family leave is also a great help to employees. It lets them take time off from work and still get paid when someone in their family needs care.

• They can spend time with a new baby or child that joins their family. They can also help their family members when they’re sick or hurt.
• Your employee and their family can be healthier and happier. It can make it easier for moms and babies to recover after giving birth.
• Employees can have a better balance between their work and their life. It can make them less worried about money or losing their jobs when they need to take time off. It can also help them keep their health insurance while they’re not working.

Short-term disability and paid family leave can help employees who can’t work. They can also improve the health and happiness of employees and their families. These benefits can make a big difference for employees who need them.

The Benefits of Short-Term Disability and Paid Family Leave for Your Business

Short-term disability and paid family leave are benefits that help your business. They can help you in these ways:

• Get and keep good employees. A Better Benefits Survey found a revealing fact. Better family and lifestyle benefits are important for many workers. Around 66 percent of employees would switch jobs if they got these benefits. They want to have time off to care for family members. This is something that people from different generations value.
• Make your employees more productive. These benefits can also make your employees work better. They can take time off when they or their family members are sick or hurt and not worry about money or losing their job. This can make them less stressed, more healthy, and more loyal to your business. They can also be more happy, motivated, and productive at work. These benefits can also make your work culture more diverse, inclusive, and flexible.
• Rise above the competition. These benefits can also make your business better than other businesses that don’t have them. You can have a good reputation as a business that supports your employees and your community. You can earn respect while following the law.

Help Your Employees and Your Bottom Line with STD and PFL

Educate your staff about short-term disability and paid family leave. You can help both your employees and your business with these benefits. They’ll be able to deal with health problems or family needs. And you’ll help your business do well, earn respect, and follow state law.

By offering these benefits, you can attract and keep top talent. You can create a positive work environment where employees feel valued and respected. They’ll also be more likely to be creative and innovative in their work. This can lead to new ideas that can help the company grow and succeed.

If you’re ready to set up STD and PFL benefits for your employees, Horan can help. We understand the importance of these benefits for employers and employees alike. We can help you design an STD and PFL plan that meets the needs of your business and your employees.

To get started, click the Get a Quote button below. One of our insurance specialists will contact you with the next steps.

Want more business insurance insight related to protecting your employees? Read our article “New York Workers Comp Explained.”