Short-Term Disability and Paid Family Leave for Restaurant Employees in CNY

Central New York restaurant owners like you are focused on creating delicious meals and providing excellent service to your customers. But have you considered the potential impact of short-term disability and paid family leave on your business? 

Navigating these policies can be confusing and time-consuming, leaving you worried about making uninformed decisions that could harm your restaurant.

At the Horan insurance agency, we understand your concerns about buying a policy that doesn't quite fit your unique situation. That's why we're here to help. 

As an independent agency working with multiple carriers, we have the knowledge and perspective to guide you through the complexities of short-term disability and paid family leave.

In this article, we'll explore the key aspects of these policies that every restaurant owner should know. From understanding eligibility for part-time and seasonal employees to managing staff absences and navigating the claims process, we'll provide you with the information you need to make informed decisions for your business.

Don't let the fear of making the wrong insurance choice keep you up at night. Keep reading to learn more about how short-term disability and paid family leave apply to your business and how we can help you find the right coverage for your unique situation.

Understanding Short-Term Disability and Paid Family Leave for CNY Restaurant Employees

As a restaurant owner in Central New York, you're required to provide short-term disability and paid family leave coverage for your employees. Let's dive into what these policies entail and how they protect your staff.

Short-Term Disability Coverage: Protecting Employees During Non-Work-Related Incidents

Short-term disability coverage is designed to support employees who are unable to work due to an injury, illness, or other condition that occurred outside of the workplace. If an employee is forced to miss time due to a non-work-related issue, this policy kicks in to provide financial assistance.

For instance, say it’s a typical Central New York winter on a Sunday morning. One of your fry cooks—who has a day off—slips on an icy sidewalk while walking their dog in downtown Syracuse, fracturing their wrist and requiring surgery, which leaves them unable to work for several weeks.

In this scenario, the short-term disability policy would provide financial support to the employee during their recovery period, ensuring they have some income while they're unable to work due to the non-work-related injury.

In New York State, the short-term disability policy is typically funded through small deductions from the employee's paycheck, usually around $0.60 per pay period. The standard coverage provides $170 per week for up to six months in a calendar year while the employee is out of work.

It's important to note that the short-term disability benefits don't come from the restaurant owner directly, but rather from the separate insurance policy. However, as an owner, it's mandatory to have this coverage in place for your staff.

Paid Family Leave: Supporting Employees During Life Events

For example, if a father needs to take time off after the birth of a child, paid family leave allows him to receive up to 67% of his pay while he's out, for a maximum of 12 weeks. The time off doesn't need to be taken all at once and can be used incrementally as needed.

It's important to note that the paid family leave benefit is capped at the current New York State average weekly wage, which is adjusted annually for inflation. So, if an employee's 67% pay exceeds the state's average weekly wage, they'll receive the capped amount instead.

Paid family leave can be used for various situations, such as 

1. caring for a newborn or adopted child, 
2. caring for a sick immediate relative (like a parent, child, or spouse), or 
3. spending time with an immediate family member before they leave for military service. 

While there is some overlap with the federal Family and Medical Leave Act (FMLA), New York's Paid Family Leave program is a separate, more comprehensive policy that offers paid leave and covers a wider range of situations and employers. 

This program ensures that employees can take the necessary time off to support their families without sacrificing their entire income or risking their job security.

Employees contribute to the cost of paid family leave through a small deduction labeled “PFL” on their pay stub, which is separate from the short-term disability (DBL) deduction. Once an employee has paid the maximum amount for the year, the deductions stop.

Take a deeper dive into short-term disability and paid family leave coverage.

Navigating Short-Term Disability and Paid Family Leave as a Restaurant Owner

While the basic principles of short-term disability and paid family leave apply to all businesses, restaurant owners face unique challenges and considerations when it comes to these policies. 

From managing a large number of part-time and seasonal employees to navigating the claims process and annual audits, it's essential for restaurant owners to understand how these policies impact their operations.

The Importance of Coverage for Restaurant Owners

As a restaurant owner, it's crucial to understand that having short-term disability and paid family leave coverage isn't just about doing right by your staff—it's a legal requirement to stay in business and avoid penalties. 

The New York Workers Compensation Board oversees this coverage, and failing to have it in place can result in fines and other consequences.

Eligibility for Part-Time and Seasonal Employees

Restaurant owners in Central New York often have a significant number of part-time and seasonal employees, and it's important to note that these workers are still eligible for short-term disability and paid family leave benefits. Even if an employee works limited hours or only during specific months, they can collect from these policies when needed.

Managing Staff Absences and Temporary Hires

When an employee takes leave under short-term disability or paid family leave, it can be challenging for restaurants to manage the absence while maintaining operations. These policies help keep the employee's job secure without requiring the employer to pay for the leave directly. 

As a restaurant owner, you may need to hire temporary staff to cover the absence, but it's essential to be strategic about these decisions and consider what will happen when the original employee returns to work.

Navigating the Claims Process

Restaurant owners may be involved in facilitating the paperwork and claims process for employees using short-term disability or paid family leave. While employees can handle some of this directly with the insurance carrier, owners will likely need to provide information about the employee's 

• salary history, 
• start date, and 
• other relevant details.

Annual Audits and Reporting Requirements

Short-term disability and paid family leave policies are subject to annual audits, typically at the end of the policy year. As a restaurant owner, you'll need to report the number of male and female employees you had on staff each month throughout the year. 

This requirement applies even if you're a seasonal business only open for a portion of the year, so it's essential to 

1. maintain accurate records and 
2. be prepared for the audit process.

Coverage Applies to All Restaurant Types

Regardless of your restaurant's specific characteristics—whether you're a seasonal operation, only open for certain meals, or have limited hours—you are required to have short-term disability and paid family leave coverage in place. 

This is a universal requirement for all New York restaurants, so it's critical to plan for this coverage as part of your business operations.

Protect Your Restaurant and Your Employees with the Right Coverage

Restaurant owners like you understand the importance of protecting your business and your employees. Not only is implementing short-term disability and paid family leave policies a legal requirement in New York State, but navigating them effectively can also safeguard your restaurant from the financial and operational challenges that come with unexpected absences.

Horan strives to be your trusted advocate in the complex world of insurance. Our experience working with multiple carriers gives us the unique perspective to help you find the right coverage for your restaurant. 

We'll work with you to ensure that your policies align with your business needs, giving you the composure and security to focus on what you do best: serving your customers.

Don't let the complexities of short-term disability and paid family leave hold you back. 

Click the Get a Quote button below to start a conversation with our knowledgeable team and take the first step toward protecting your restaurant and your employees with the right coverage.