State Mandated Employee Benefits

State Mandated Employee Benefits

April 20, 2022

Federal law requires medium and large organizations to provide their employees with five main benefits; however, each state also requires additional benefits. 


The government mandated benefits are: 

Social Security and Medicare Contributions 

Both are paid in equal parts by the employer and the employee through payroll deductions and employer payroll tax.  

Workers Compensation Fund 

This supports the employees in the event they can no longer work due to an event that occurred while at work. Some states require workers compensation to be provided through a state-run insurance program. Other states allow you to purchase workers compensation through an independent insurance agency.  

Unemployment Compensation 

This provides financial compensation to employees if they unexpectedly and involuntarily lose their job. 

Family and Medical Leave 

The Family Medical Leave Act of 1993 requires any employer with more than 50 employees to provide employees with 12 weeks of unpaid time off.  

COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986)  

This federally managed program allows all eligible employees, and their dependents, to continue health insurance coverage for a period of up to 18 months.  

In addition to these, some states have mandated other employee benefits.  

One of these mandated benefits is Employer Disability & Wage Replacement. This benefit is to provide short-term relief for employees in the event they are unable to work.  

California, Hawaii, New Jersey, New York, and Rhode Island are required to offer Disability or Wage Replacement. 

The mandates are as follows: 

California: Short Term Disability and Paid Family Leave 

Hawaii: Wage Replacement Program. This applies to government, domestic commission only employees. Student nurses and hospital interns are excluded. 

New Jersey: Short Term Disability for physical or mental health 

New York: Short Term Disability & Paid Family Leave 

Rhode Island: Short Term Disability and Temporary Caregiver Coverage 

Puerto Rico: Short Term Disability 

We can assist in securing mandatory benefits with carrier partners or by referring to the direct state department. Have questions? Reach out to us today.