Short answer: Generally yes. Statutory disability and paid leave obligations follow the state where the employee works, not where the employer is headquartered, so a Texas employer with a New York or California employee needs to check that state’s rules.
State disability programs apply based on where the work is performed. A Texas business with one remote employee in New York may need New York disability benefits coverage, usually bought from a carrier. In California, the program is funded by an employee contribution withheld from pay; the EDD lists a 2026 employee contribution rate of 1.3% with a maximum weekly benefit of $1,765. New Jersey, Rhode Island and Hawaii have their own systems, and many states also run paid family leave programs.
Check the employee’s work state at hire, not at claim time. A carrier that writes the state’s statutory plan can often attach it to the employer’s existing STD.
A plan maintained solely to comply with a state disability law is outside ERISA (29 U.S.C. 1003(b)(3)), so it follows state rules rather than the federal claims rules.