Are employers obligated to provide long-term disability insurance?

In New York, employers are not required to offer long-term disability (LTD) insurance as a part of their benefits package. However, they may choose to offer it to their employees as an optional benefit. Under The Disability Benefits Law (DBL), employers in New York are required to provide employees with short-term disability (STD) insurance, which pays benefits for up to 26 weeks. STD insurance covers a portion of lost wages due to an injury, illness, or disability and can help employees financially while they are unable to work. Long-term disability insurance goes beyond STD insurance by providing more extensive coverage and longer-term benefits. It normally kicks in approximately six months after an injury, illness, or disability, and often covers a percentage of an employee’s salary for up to five years or more. However, the coverage and length of benefits provided by LTD plans can vary widely from one employer to another. While employers in New York are not required to provide long-term disability insurance, they may be liable for other types of benefits for certain illnesses or injuries. For example, under the Workers’ Compensation Law, employees may be eligible for compensation for work-related injuries or illnesses. Depending on the circumstances, some employees may also be able to file for disability benefits under federal programs like Social Security Disability Insurance.

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Are employers obligated to provide long-term disability insurance?

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