Quick Answer
NY paid family leave insurance is required for almost every New York employer with even one employee. It usually rides as a rider on your disability (DBL) policy and pays employees 67% of their average weekly wage, up to $1,228.53 a week in 2026, for up to 12 weeks of job-protected leave. Employees fund it through a 0.432% payroll deduction, capped at $411.91 a year. For 2027, the rate rises to 0.452% and the cap to $451.81.
Ready to check your coverage?
“The invoice totals $8,000 for a part-time worker who has been employed for only six months.” That’s how one out-of-state owner described the bill that arrived for a single New York employee. Another employer watched a new mother’s claim get denied, then lost the appeal, because of paperwork errors made inside the company. NY paid family leave insurance looks like a small payroll line, but it’s an insurance policy with rules, forms and deadlines, and the penalties land on the employer.
The Coyle Group is a commercial insurance agency for business owners who’ve outgrown one-size-fits-all coverage and need a specialist who understands the nuances.
You want your NY paid family leave insurance in place, your deductions right and your employees paid on time when they take leave, without a surprise penalty notice. That’s fixable. We manage the market for you: we check your DBL and PFL coverage alongside workers comp, confirm who must be covered and place it with the right insurer. 95% of our clients stay with us. The next step is a short, confidential call.
What does getting NY paid family leave insurance wrong cost you?
Getting it wrong costs you in penalties, claim bills and employee relations. The Workers’ Compensation Board can charge up to 0.5% of your payroll for the uninsured period plus $500 per period, and you’re also on the hook for any benefits the state pays your employees. Owners and officers can be held personally liable.
The penalties for no DBL and PFL coverage
According to the Workers’ Compensation Board, an employer without required disability and Paid Family Leave coverage faces:
A civil penalty.
Up to one half of one percent of payroll for the noncompliance period, plus up to $500 for each period.
Liability for claims.
The greater of the benefits the state’s Special Fund paid your employees or 1% of payroll for the period.
A misdemeanor charge.
A fine of $100 to $500, up to a year in jail, or both; a third violation within five years can reach $2,500.
Personal exposure.
Sole proprietors, partners and corporate officers may be held personally liable.
What it looks like in dollars
On a $2 million payroll, a full year without coverage could mean a $10,000 civil penalty and at least $20,000 in claim liability, before fines. One owner said the “paid family leave and disability penalty went to $600” in the weeks it took just to buy a policy.
Not sure your DBL and PFL coverage covers every employee? Book a call and we’ll review your policies and payroll setup with you.
What is NY paid family leave insurance?
NY paid family leave insurance is a state-mandated policy that pays employees part of their wages while they take job-protected time off for family reasons. Paid Family Leave was introduced in New York in January 2018. It’s not a tax, and it’s not workers comp. It’s insurance, and what triggers it surprises many employers.
Watch: What is New York Paid Family Leave Insurance or PFL?
NY paid family leave insurance in simple terms
Think of it as short-term income insurance for family events, paid for by your employees and administered by you. Your employees can take up to 12 weeks off without the risk of losing their jobs and receive replacement wages from the PFL insurer. You collect a small deduction from each paycheck and use it to pay the premium.
What it covers
PFL provides job protection and paid time off for three qualifying events:
Bonding with a new child.
Birth, adoption or foster placement.
Caring for a loved one.
A family member with a serious health condition.
Military family needs.
Helping the family when someone is deployed abroad on active military service.
How the benefit is calculated
The wage replaced is 67% of the worker’s average weekly wage for the prior 8 weeks, capped at 67% of the New York State Average Weekly Wage (NYSAWW). When I first recorded a video on this in 2021, the NYSAWW was $1,450.17 and the maximum weekly benefit was $971.61. Those figures change every year, so always use the current year. New York State’s payroll deduction calculator does the math for you.
Key aspects at a glance
Here’s how NY paid family leave insurance works, piece by piece:
Feature |
What it means |
Why it matters to you |
|---|---|---|
|
Leave length |
Up to 12 weeks in a rolling 52 weeks |
You plan staffing around it |
|
Benefit |
67% of average weekly wage, capped |
Employees still lose a third of pay |
|
Job protection |
Same or comparable job on return |
Retaliation creates legal exposure |
|
Health insurance |
Continues on the same terms |
You keep paying your share |
|
Funding |
Employee payroll deduction |
You collect and remit it |
|
Policy |
Usually a rider on your DBL policy |
Lapses hit both coverages |
2026 and 2027 figures
The state has already published next year’s numbers. Per the official 2026 update and 2027 update:
Item |
2026 |
2027 |
|---|---|---|
|
Employee contribution rate |
0.432% of gross wages |
0.452% of gross wages |
|
Annual contribution cap |
$411.91 |
$451.81 |
|
NY State Average Weekly Wage |
$1,833.63 |
$1,922.25 |
|
Maximum weekly benefit |
$1,228.53 |
$1,287.91 |
How does NY paid family leave insurance work with your DBL policy?
NY paid family leave insurance is usually added as a rider to your statutory disability benefits (DBL) policy, so the two travel together. PFL is made part of your DBL coverage, and if one lapses, both do. That’s simple until you ask which one pays when an employee is out.
PFL rides on your DBL policy
The state says PFL coverage “will typically be added as a rider on an employer’s existing disability insurance policy,” per its guide to obtaining and funding a policy. You can also buy a stand-alone PFL policy or get Board approval to self-insure. Our NY DBL guide covers the disability side in depth.
Watch: What is NY DBL? How much does DBL Cost? How do you get DBL?
DBL vs. PFL side by side
The two coverages answer different questions:
Feature |
DBL (disability) |
PFL (family leave) |
|---|---|---|
|
Pays when |
The employee is sick or hurt off the job |
The employee cares for family |
|
Benefit |
50% of wages, max $170 a week |
67% of wages, max $1,228.53 a week (2026) |
|
Length |
Up to 26 weeks |
Up to 12 weeks |
|
Waiting period |
7 days |
None |
|
Job protection |
No |
Yes |
|
Who pays |
Mostly the employer |
The employee, through payroll |
DBL’s numbers come from the Workers’ Compensation Board: a $170 weekly maximum, 26 weeks in any 52, and an employee share of no more than 60 cents a week. An employee can’t collect both at once, and combined DBL and PFL can’t exceed 26 weeks in 52.
Workers comp is a separate policy
Your workers compensation insurance covers injuries on the job; DBL and PFL don’t. In practice, New York employers need all three, and they’re often bought from different places. Our guide to NY workers comp insurance explains that side.
PFL and the federal FMLA
The federal Family and Medical Leave Act gives job-protected but unpaid leave, and it applies only to larger employers. When a leave qualifies under both laws, you can require them to run at the same time, but only if you notify the employee that the leave counts under both, according to the state’s PFL and other benefits guidance. Skip the notice and an employee may stack them.
Which employers must carry NY paid family leave insurance?
Almost every private employer in New York with one or more employees must carry NY paid family leave insurance. That includes part-time staff and out-of-state companies with people working in New York. There are some exceptions, and they’re narrower than most owners assume.
One employee is enough
The rule doesn’t wait for you to grow. Most private employers with even one employee must have coverage, and the clock starts when they’re hired. If you’re unsure who counts, start with employee or independent contractor; misclassified workers usually count. The same Board enforces whether you need workers comp in NY.
Watch: Does my business need workers compensation insurance in NY?
Out-of-state and remote employees
New York coverage follows where the work happens, not where your headquarters is. According to the state’s out-of-state employer guidance, if you have one or more employees working in New York for 30 or more days in a calendar year, you must obtain disability and Paid Family Leave coverage for them. A remote hire in Brooklyn can trigger it.
Exceptions
Almost all employers need to comply with the PFL and DBL laws, but there are some exceptions, such as municipalities and other public employers (which may opt in), farm laborers and certain religious workers. Confirm any exception in writing before you rely on it.
When employees can waive it
Some employees may sign a waiver: those working 20 or more hours a week who won’t stay 26 consecutive weeks, and those working under 20 hours who won’t work 175 days in 52 weeks. If their schedule changes, the waiver ends and deductions start, including back contributions.
New for 2027: construction workers under a CBA
Starting January 1, 2027, construction employees working under a collective bargaining agreement can qualify if they worked at least 26 of the last 39 weeks with any covered employer under that agreement. Contractors with union crews should confirm their insurer is ready for the change.
Businesses that feel it most
Small employers with a few key people.
One 12-week leave can stall a department; see our New York small business insurance tips.
Out-of-state companies with New York hires.
They often miss DBL and PFL entirely.
Contractors and seasonal employers.
Waivers, short tenure and the 2027 rule all apply.
Firms using a PEO.
Check whose policy covers your people; it’s the same question we raise in is a PEO’s EPLI coverage enough.
Hiring your first New York employee, or your first one outside your home state? Contact us and we’ll map which policies you need before payroll starts.
Who pays for NY paid family leave insurance, and what does it cost?
Employees pay for NY paid family leave insurance through a payroll deduction, while the employer pays most of the DBL premium it rides on. In 2026 the employee deduction is 0.432% of gross wages, capped at $411.91 a year. Your out-of-pocket cost is the DBL side, and it’s smaller than most owners expect.
The PFL deduction
Each pay period, you deduct the state rate from gross wages until the annual cap is reached. Commissions and bonuses count as wages. An employee earning $1,000 a week contributes about $4.32 a week in 2026. You may choose to pay the PFL cost yourself as a benefit, but you can’t charge employees more than the cap.
What DBL costs you (as of November 2026)
Statutory DBL is cheap compared with the penalties. These ranges are a planning guide, not a quote:
DBL option |
Typical small-group cost |
What moves it |
|---|---|---|
|
NYSIF statutory DBL (standard rate) |
Up to $17.68 per employee a year |
Payroll; $60 minimum policy |
|
Private carrier statutory DBL |
About $1.75 to $4.60 per employee a month |
Group size, male/female mix, billing |
|
Enhanced DBL (higher weekly benefit) |
Rises with the benefit level |
Benefit multiple chosen |
|
Employee share of DBL |
Up to $0.60 per employee a week |
Whether you deduct it |
NYSIF announced that its standard DBL rate fell from a maximum of $24.75 to $17.68 per person per year on January 1, 2026, a 28% decrease. See also what business insurance costs in New York.
What insurers look at before they quote
The PFL rate is set by the state, but the DBL price and the insurer’s appetite aren’t:
Factor |
Why underwriters care |
What to have ready |
|---|---|---|
|
Headcount by state |
Only New York workers are covered |
A list of NY-based and remote staff |
|
Payroll |
It drives NYSIF-style rating |
Annual payroll by location |
|
Male/female mix |
Many carriers rate DBL by sex |
An employee census |
|
Benefit level |
Enhanced DBL costs more |
Your target weekly benefit |
|
Prior coverage |
Gaps raise questions |
Prior policy and DB-120.1 certificate |
Where can you buy NY paid family leave insurance?
You can buy NY paid family leave insurance from a private insurer licensed for DBL and PFL, from the New York State Insurance Fund, or by getting Board approval to self-insure. Most small and mid-sized employers buy it with DBL from a carrier or NYSIF. The right choice depends on what else you buy and who handles your claims.
Your three options
Option |
Best fit |
Watch for |
|---|---|---|
|
Private DBL/PFL carrier |
Employers who want one benefits partner |
Rates and service vary by carrier |
|
Cost-focused small employers |
Claims handling and service model |
|
|
Self-insurance |
Large employers with staff to run it |
You process and pay claims yourself |
Watch: How to Get Business Insurance in New York (NY)
Statutory or enhanced benefits
Every covered employer must provide the statutory level. You can go further, with higher weekly DBL benefits or richer leave, if you want a recruiting edge. Enhanced benefits are a business decision, not a legal one, and they should be priced side by side with the statutory option.
Proof of coverage
Your insurer issues the DB-120.1 certificate that clients, landlords and permit offices ask for, the DBL version of a certificate of insurance. You must also post the DB-120 and PFL-120 notices where employees can see them.
Want to know whether NYSIF or a private carrier fits your workforce better? Book a call and we’ll compare them for you.
What happens when an employee takes Paid Family Leave?
When an employee takes leave, NY paid family leave insurance pays the benefit, but you start the paperwork, hold the job and keep health insurance running. The insurer has 18 days to accept or deny. Most problems come from the employer’s side of the form, not the insurer’s.
Plan a month ahead
If an employee anticipates going out on leave for a qualified reason, they should discuss it with you at least a month beforehand. That gives you time to reassign job duties or hire a temp replacement worker, and to get the claim started with your DBL insurer.
Filing the claim
You should have claim forms from your insurer available for employees to complete. They’re also on most insurer websites and the New York State Paid Family Leave website.
- The employee completes Part A. Then gives it to you.
- You complete Part B. Accuracy here decides the outcome.
- Both go to the PFL insurer. With the supporting documents.
- The insurer decides within 18 days. It accepts or denies based on eligibility.
Job and health insurance protection
Employees return to the same or a comparable job, and health insurance continues on the same terms while they’re out. Denying reinstatement or punishing someone for taking leave invites a retaliation claim, which is where employment practices liability insurance comes in. Benefit administration mistakes are their own exposure, covered in employee benefit liability.
Where to get answers
For employers and employees, it’s important to know PFL so nobody misses these benefits. If you have questions on benefits, how to file a claim or what’s eligible, contact your insurance broker or your DBL insurer; many insurers have detailed PFL pages for employees.
Real-world example: the New York employee nobody insured.
An owner based outside New York hired a part-time worker in the state through a payroll service. Six months later, a noncompliance bill arrived: “The invoice totals $8,000.” After the owner bought coverage, the workers comp fine had reached $9,000 and the PFL and disability penalty $600. The lesson: when you hire in a new state, ask which statutory policies follow that employee before the first paycheck.
What are the key benefits of getting NY paid family leave insurance right?
Getting NY paid family leave insurance right protects you from penalties, keeps claims moving and keeps good employees. It costs little to do correctly and a lot to fix after a penalty notice. The benefits show up as risks you avoid.
Benefits framed as risk avoided
No penalty notices.
Continuous coverage avoids the 0.5% payroll penalty and claim liability.
No personal liability.
Owners and officers stay out of the Board’s reach.
Fewer HR disputes.
Correct forms and on-time payments reduce retaliation claims.
Lower DBL cost.
Comparing NYSIF and private carriers can lower the premium you pay.
Easier hiring.
You can offer a clear leave benefit, statutory or enhanced.
What should you watch out for with NY paid family leave insurance?
The biggest risks are coverage that quietly lapses, deductions that are set up wrong and employees nobody realized were covered. None of them show up until a penalty notice or a denied claim. Most are cheap to fix once you look.
Things to look out for
A lapse when you switch carriers.
Coverage must be continuous; there can’t be a gap, even for a day.
Last year’s deduction rate.
The rate changes every January; 2027 is 0.452%.
Remote and out-of-state staff.
Thirty days of work in New York triggers coverage.
Waivers that expired.
A schedule change voids the waiver.
Missing notices.
DB-120 and PFL-120 must be posted.
Assuming payroll handles it.
Your payroll provider withholds; it doesn’t buy the policy.
Red flags in your DBL and PFL setup
Why work with The Coyle Group on NY paid family leave insurance?
Because NY paid family leave insurance touches workers comp, DBL, payroll and HR, and it works best when one broker looks at all of it. Donna Richard, our Senior Account Manager, has 20 years in workers comp and handles multi-state programs. Over 40 years I’ve found the statutory lines are where small mistakes turn into penalties.
The Coyle Process
- Diagnose the risk. We confirm who must be covered, where they work and how payroll is set up.
- Identify the right insurers. We compare private DBL/PFL carriers and NYSIF for your workforce.
- Explain where we’re going and why. You’ll know which insurers see your account and why.
- Bring viable options back for comparison. Statutory and enhanced, priced side by side.
The benefit is fewer applications, fewer duplicate requests and one point of contact. Looking to purchase PFL and DBL for your company? We handle it as part of all your business insurance in New York, for all types of companies doing business in the state.
Watch: Why Quoting or Shopping Your Commercial Insurance is Ineffective
About shopping your coverage
Comparing options is smart. Shopping indiscriminately means duplicate applications, the same insurers approached by several brokers, and risks misclassified by generalists. A traditional shopping exercise rarely looks past the price. You don’t need five brokers shopping your insurance. You need one capable broker making sure the right insurers compete for your business. If your current broker never raised DBL or PFL, maybe you’ve outgrown your broker, and a broker of record letter is how you switch.
Watch: What is a Broker of Record Letter?
Who this isn’t right for
If you only need a statutory DBL and PFL policy and nothing else, a direct purchase from NYSIF or a carrier may serve you well, and I’ll tell you so. If you’re looking for someone to rubber-stamp what you already have at a lower price, there are brokers who will do that; we’re not one of them. And if the plan is to put three brokers in a race, we’re not the right fit. We get hired to win, not to bid.
Your next step: a 15-minute call, not an application
You already have coverage.
We do a confidential review of your DBL and PFL forms, exclusions, conditions, covered locations and payroll setup.
You need new coverage.
We build the underwriting picture first, then identify which insurers fit your workforce.
Ready to make sure your NY paid family leave insurance is set up right? Book a call and let’s have a 15-minute conversation.
Frequently Asked Questions
Author’s Expertise
This article was written by the CEO of The Coyle Group, Gordon B. Coyle, CPCU, ARM, AMIM, PWCA, who has over 40 years of experience working with business owners of all sizes and industries across the US, solving their insurance challenges.
