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June 26, 2017

New York Paid Family Leave Update

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New York’s Paid Family Leave Benefits law (PFL), is set to take effect on January 1, 2018 and impacts all employers with employees working in New York.

What does the law provide?
The law provides eligible employees up to 12 weeks of paid, job protected leave starting on January 1, 2018 to (1) care for a family member with a serious health condition, (2) bond with a child during the first twelve months after the child’s birth, adoption, or placement in foster care, or (3) attend to a “qualifying exigency.”

How is the leave funded?

The PFL will be funded through deductions taken from the pay of full-time and part-time employees. On June 1, 2017, the Department of Financial Services announced the weekly contribution rate and the maximum employee contribution. The premium rate for Family Leave Benefits and the maximum employee contribution for coverage beginning January 1, 2018 is set at 0.126% of an employee’s weekly wage up to and not to exceed the statewide average weekly wage. New York State’s current average weekly wage is $1,305.92.

Starting July 1, 2017, employers may, but are not required to, begin deducting the contribution amount from employee wages to pay for the 2018 coverage period. This amount can be used to offset the cost of acquiring the mandated insurance policies. Employers who choose not to begin taking deductions on July 1, 2017, cannot retroactively make deductions in excess of the maximum weekly contribution to cover the cost of providing the required leave benefit.

Next Steps
No action is required by you at this time. The New York Workers’ Compensation Board has not yet issued the final regulations implementing the PFL law. We continue to assess the impact of the law on the services we provide in order to determine how best to serve you and will keep you informed.

As always please, reach out if you have any questions.