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Summary of differences between federal and state regulations
Employee benefits are generally covered under the federal jurisdiction of the Employee Retirement Income Security Act (ERISA).
Federal ERISA plans generally do not have to comply with state laws. ERISA rules preempt or block state laws that relate to ERISA plans. State insurance laws, however, do apply. New York law covers group life insurance, which provides, for example, the following:
The employer cannot be the beneficiary.
The premium must be paid either wholly from the employer's funds or funds contributed by him or from funds contributed by the insured employees, or from funds contributed jointly by the employer and employees. If all or part of the premium is to be derived from funds contributed by the insured employees, such policy must insure not less than fifty percent of such eligible employees or, if less, fifty or more of such employees.
Employer contribution is optional.
New York also has a disability benefits law, which provides, for example, the following:
All employers with at least one employee on each of at least thirty days in any calendar year are covered.
Employees are eligible if they work for a covered employer for four or more consecutive weeks. Terminated employees are also eligible for up to 26 weeks following termination, as long as they are eligible for unemployment benefits.
Disability benefits are payable to an eligible employee for disabilities beginning with the eighth consecutive day of disability, and last up to 26 weeks during a period of 52 consecutive calendar weeks.
The employee must be under the care of a duly licensed physician.
The weekly benefit is one-half of the employee’s weekly wage, up to $170.
Employees working for a covered employer must contribute to the cost of providing disability benefits at one-half of one percent the employee's wages, up to $0.60 per week. The employer contributes the balance.
Covered employers must post notices stating that the employer has provided for the payment of disability benefits.
State
Contact
New York Department of Insurance
Regulations
ISC Insurance
Article 32 Insurance Contracts — Life, Accident and Health, Annuities
§3220 Group life insurance policies
Article 42 Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies
§4216 Group life insurance
WKC Workers’ Compensation
Article 9 — Disability benefits
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)