New York State Paid Family Leave

In July 5, 2017
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New York State passed a Paid Family Leave (PFL) law that provides partial income replacement and job protection while workers are on leave for covered reasons, such as bonding with their child (during the first 12 months following the birth, adoption, or fostering of a child), caring for a close relative with a serious health condition, or helping relieve family pressures when someone is called to active military service.  Employees on PFL are also guaranteed to be able to return to their job and continue their health insurance.  If employees contribute to the cost of their health insurance, they must continue to pay their portion of the premium cost while on PFL.  The program is mandatory for all private employers, and public employers may opt-in.

 

The New York Paid Family Leave is designed to phase in over four years, starting January 1, 2018. Employees may take the maximum benefit length in any given 52-week period. The 52-week clock starts on the first day the employee takes Paid Family Leave.

 

The schedule is as follows:

The New York State Department of Financial Services (DFS) has set the maximum employee contribution rate for the first year at .126% of an employee’s weekly wage, up to $1,305.92 (the current statewide average weekly wage) – capped at $1.65 per week. A maximum rate of employees’ contribution will be established each year. Employers may choose to pay some or all of this on behalf of employees as an added employment benefit, but are not obligated to do so.

 

Paid Family Leave coverage will be included under the disability policy all employers must carry. The premium will be fully funded by employees through payroll deductions that employers are permitted, but not required, to begin deducting from employees starting July 1, 2017.  Please provide notice to your employees prior to making payroll deductions from your employees for the Paid Family Leave.

 

Note:  If you are a USA Payroll Disability Paygo client, your New York Paid Leave rider will be added to your policy automatically and the USA Payroll Agency will handle your payments. If you are not currently a USA Payroll Disability Paygo client and are interested in our services, please contact our insurance office at 585-643-2140 or by email at insurance@usapayroll.com.

 

For an Employee Notice in order to withhold the payroll deduction for the New York State Paid Family Leave, please refer here.

 

For a NYS Paid Family Leave Contribution Waiver for applicable employees, please refer here.

 

For more information, please refer to the agency website at: www.ny.gov/paidfamilyleave and http://www.wcb.ny.gov/PFL/pfl-regs.jsp for the regulations.

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