New York Releases 2025 Disability Benefit Law Updates: What Employers Need to Know

New York is one of a growing number of states that requires employers to provide disability benefits for off-the-job injuries and illnesses. The law provides certain weekly benefits to employees to offset lost wages. These disability benefits are cash only and cannot be combined with benefits received under New York’s Paid Family Leave law.

A covered worker is any employee that is also a covered worker under New York’s workers’ compensation law. For 2025, there is no change from the previous year. Covered workers are entitled to 50 percent of their average weekly wage for the last eight weeks worked, up to a maximum of $170 per week. Covered workers may take a maximum of 26 weeks of disability during a 52-week period. All benefits are subject to Social Security and Medicare taxes.

Employers may require employees to contribute up to one half of one percent of their wages; however, total employee contribution cannot exceed 60 cents per week. Benefits begin on the eighth consecutive day of disability. Employers must provide the “Statement of Rights under the Disability Benefits Law” within five days of learning an employee is disabled.

Employers requiring employee contributions should review its payroll deductions to make sure the contributions do not exceed the maximum allowable rate applicable to employees. Employers should also review its internal policies to confirm employees are provided the “Statement of Rights under the Disability Benefits Law” and are aware of their rights under the law. For additional support, connect with OneDigital's Compliance Consulting team.

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