BCW Joins Coalition Opposed to Drastic Increase in Short-Term Disability Benefits

The Business Council of Westchester is among a coalition of 20 business organizations representing tens of thousands of businesses of all sectors and sizes across New York, which is requesting rejection of proposed legislation that would dramatically increase short-term disability benefits.

According to a letter from the coalition to House Speaker Carl Heastie and the entire New York Assembly, passage of the bill S.172/A.84 would have a devastating effect on the state’s business community.

“The viability of New York’s economy depends on businesses, small and large, and a sudden and massive increase in short term disability benefits will place an extreme financial burden on New York businesses at a time of economic uncertainty and rising business costs. This legislation would dramatically increase short-term disability benefits, resulting in massive premium increases for New York businesses. New York is one of only five states that require employers to replace any income lost to workers due to off-the-job illnesses or injuries,” read the letter.

Historically, short-term disability benefits have been capped at $170 per week since 1989. and while an adjustment of some kind could be appropriate, the bill proposes an increase in benefits each year from 2027 through 2030 until the maximum benefit reaches 67% of the employee’s average weekly wage, capped at 67% of the state average weekly wage for weeks. Using the current state average weekly wage, benefits would rise from $170 per week to $1,177.32 per week — a 600% increase in the benefit amount over a 4-year period.

An increase of this magnitude will undoubtedly send short term disability insurance premiums skyrocketing not only from the higher benefits, but also from higher utilization. This increase, and its parallel increase in premiums, will severely impact businesses and non-profits, especially those operating on thin profit margines. Additionally, the legislation requires employers to cover at least 60% of the short-term disability premium, while contributions are capped for employees, meaning employers could be responsible for covering far more than 60%.

In addition to the BCW, other organizations signing the letter include Associated Builders & Contractors of Empire State; Associated General Contractors New York State; Business Council of New York State; Capital Region Chamber; Empire State Forest Products Association; Food Industry Alliance of New York; Greater Binghamton Chamber of Commerce; Greater Rochester Chamber of Commerce; National Federation of Independent Business (NFIB); New York Association of Convenience Stores; New York Construction Materials Association, Inc.; New York Farm Bureau; New York State Economic Development Council (NYSEDC); New York State Hospitality & Tourism Association (NYSHTA); New York State Restaurant Association; Northeastern Retail Lumber Association; Retail Council of New York State; Trucking Association of New York. To read the full letter, click here.

As a strong advocate for economic growth, the BCW recently joined forces with a group of 50 business and civic leaders from across the state to create the “Keep New York Building” coalition to oppose A6708 / S6378. The bill would require private construction projects to pay much higher wages than the industry standard. This “prevailing wage” bill, if passed, will devastate the state’s economy, grind new construction projects to a halt, and kill jobs (including union jobs) and new affordable housing.