New York Disability Benefits and Paid Family Leave: What Startups Need to Know
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If you have any employees working in the State of New York, you’ll need to comply with New York’s Disability Benefits Leave (DBL) and Paid Family Leave (PFL). These laws kick in as soon as you have one full-time W-2 employee working in the state. (This includes yourself as a founder, too.)
New York is one of the handful of states that require Disability and Paid Family Leave. However, because it’s one of the oldest states to mandate these laws, the system is not set up to remit payroll deductions to the state insurance fund automatically to cover DBL and PFL. It requires startups to remit these funds manually. Some startups fail to comply with this final step, leading to legal violations.
Here’s a quick breakdown of what startups need to know:
New York Disability Benefits Law (DBL)
- New York requires employers to provide cash benefits to employees who are temporarily disabled from work due to an injury or illness that occurs outside of the job. (Note this is different from your required Worker’s Compensation Insurance for covering time off for on-the-job injuries).
- These are cash benefits, representing a percentage of weekly wages, up to a maximum amount, applicable to both full-time and part-time employees.
- DBL does NOT mandate job protection.
New York Paid Family Leave (PFL)
- New York also requires employers to provide job-protected leave for bonding with a new child, caring for a family member with a serious health condition, or assisting family members when a relative is deployed in active military service.
- Employers are required to provide paid time off for both full-time and part-time employees.
- Job protection is mandated by law.
Read more about New York’s DPL and PFL laws here.
New York’s DPL and PFL Insurance - how it works for startups
To cover you and your employees’ Disability and Paid Family Leave benefits, you’ll need to purchase either public insurance provided by the State of New York or private insurance authorized by the New York State Department of Financial Services.
Most startups opt for the public New York State Insurance Fund (NYSIF), a public insurance carrier. NYSIF offers disability benefits, Paid Family Leave insurance, and workers’ compensation insurance. Premiums are based on gender and salary level. See more information about the New York State Insurance Fund (NYSIF) here.
Payroll deductions - how it works
Employers are allowed (but not required) to deduct contributions from employee wages to offset the cost of providing both New York Disability and Paid Family Leave insurance.
While deductions from payroll can be set up automatically, remittances to the state insurance fund must be processed manually by your startup.
As part of Every’s Payroll offering, we calculate and deduct the appropriate amount from your employees’ wages when we process payroll. This amount is left in your Every bank account and earmarked for covering New York’s DBL and PFL insurance coverage.
However, your startup is responsible for remitting these deductions to the New York State Insurance Fund (NYSIF).
Often, startups forget to remit the funds to the State. It is important to note that if you fail to use these funds correctly, you are breaking the law.
Steps to set up DPL/PFL benefits in New York State
- Contact the state insurance NYSIF to set up insurance coverage for DPL and PFL for you and your employees.
- Set up Payroll deductions to cover these insurance premiums. Payroll tools like Every can help you with this step.
- Set up remittances to the state insurance, NYSIF. Your startup is responsible for implementing this step.
- For Every customers, we send an alert that notifies customers when they need a NY DBL PFL insurance policy. Startups confirm whether they want us to move forward with an insurance policy, and then Every helps secure coverage with our partner, The Hartford, on their behalf.
How Every helps startups stay compliant with labor regulations
At Every, we help our startup customers stay compliant with state and federal labor regulations. For example, we send regular notifications based on your employee size, location, or other triggers to ensure your startup stays compliant.
Find out how Every’s HR, Payroll, Benefits, and Compliance product can help you do all the heavy lifting and stay compliant. Request a demo
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Frequently Asked Questions
- How do I sign up for Every?
You can get started right away—just click “Get Started” and follow a short onboarding flow. Prefer a little help? One of our specialists can walk you through incorporation, banking, payroll, accounting, or whatever you need.
- What features does Every offer?
Every gives startups a complete back office in one platform. From incorporation and banking to payroll, bookkeeping, and tax filings, we take care of the operational heavy lifting—so you can spend more time building, less time managing.
- How is Every different from other tools?
Most competitors give you software. Every gives you a full-stack finance and HR team—plus smart financial tools that actually benefit founders. Earn up to 4.3% interest on idle cash and get cash back on every purchase made with your Every debit cards, routed straight back to you.
Every is not a bank. Banking services provided by Thread Bank, Member FDIC. Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when Thread Bank places them at program banks in its deposit sweep program. Pass-through insurance coverage is subject to conditions. The Every Visa Business Debit Card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.
- Is my data secure with Every?
We use end-to-end encryption, SOC 2-compliant infrastructure, and rigorous access controls to ensure your data is safe. Security isn’t a feature—it’s foundational.
Can I switch to Every if my company is already set up?Yes—you can switch to Every at any time, even if your company is already incorporated and running. Whether you're using separate tools for banking, payroll, bookkeeping, or taxes, we’ll help you bring everything into one place. Our onboarding specialists will guide you through the process, make sure your data is transferred cleanly, and get you set up quickly—without disrupting your operations. Most founders are fully transitioned within a week.
- What stage of startup is Every best for?
Every is designed for startups from day zero through Series A and beyond. Whether you're just incorporating or already running payroll and managing expenses, we meet you where you are. Early-stage founders use Every to get up and running fast—with banking, payroll, bookkeeping, and taxes all handled from day one. Growing teams love how Every scales with them, replacing patchwork tools and manual work with a clean, unified system.
We’re especially valuable for teams who want to move fast without hiring a full finance or HR team—giving founders more time to build, and fewer distractions from admin and compliance
- How long does onboarding take?
Onboarding with Every is fast and efficient. For most startups, the process typically takes between 3 to 7 days, depending on your specific needs and how much setup you already have in place.
If you're a new company, you'll be up and running quickly—getting your banking, payroll, and bookkeeping set up without hassle. If you’re transitioning from another system, our specialists will help you migrate your data, ensuring a smooth switch with no gaps or errors in your operations.
We guide you every step of the way, from incorporation to setting up automated payroll to handling your taxes—so you can focus on growing your business. Our goal is to make sure you're fully operational and confident in your back office in under a week.
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