New York Paid Family Leave 2018 Update

 

Effective January 1, 2018, nearly all private employers in New York State must secure Paid Family Leave coverage for their employees.

Coverage:

Insurance coverage for Paid Family Leave must be available to employees beginning January 1, 2018, and generally will be included under an employer’s existing disability benefits policy.

Employee Eligibility

  • Employees with a regular work schedule of 20 or more hours per week are eligible after 26 weeks of employment.

  • Employees with a regular work schedule of less than 20 hours per week are eligible after 175 days worked.

In limited circumstances, employees whose regular work schedules are temporary or seasonal may opt out of Paid Family Leave.

When practical, employees should provide 30 days advance notice of their intention to use Paid Family Leave.

Employee Contribution:

Employers may collect the cost of Paid Family Leave through payroll deductions.  The maximum employee contribution in 2018 shall be 0.126% of an employee’s weekly wage, up to the annualized New York State Average Weekly Wage.

Benefits:

Benefits phase in over four years.  In 2018, employees are eligible for up to eight weeks of paid leave at 50% of their average weekly wage (AWW), up to 50% of the New York State Average Weekly Wage (SAWW).

 

YEAR

WEEKS OF LEAVE

BENEFIT

2018

8 weeks

 50% of employee’s AWW, up to 50% of SAWW

2019

10 weeks

 55% of employee’s AWW, up to 55% of SAWW

2020

10 weeks

 60% of employee’s AWW, up to 60% of SAWW

2021

12 weeks

 67% of employee’s AWW, up to 67% of SAWW



EMPLOYER RESPONSIBILITIES:

  • Employers should contact their disability insurance carrier about obtaining Paid Family Leave coverage

  • Employees are entitled to be reinstated to their same or comparable job upon return from Paid Family Leave

  • Failure to reinstate employees to their same or comparable job may leave employers exposed to discrimination and/or retaliation claims

  • Employers must continue employee’s health insurance while they are on Paid Family Leave.  Employers may require that employees continue to pay their health insurance premium contributions.
  • Employers must ensure that their employees are aware of the Paid Family Leave program and that their organizational policies comply with the law.

  • Employers must display a poster regarding Paid Family Leave coverage in their place of business, similar to Workers Compensation or Disability Benefits coverage.

Notes:

BeyondPay WILL BEGIN making NY PFL deductions from your employees checks starting with the first payroll in January 2018.  If you do NOT want us to do this please notify your Customer Service Representative immediately and we will stop the deduction.

While the coverage for Paid Family Leave is required beginning January 1, 2018 the employee deduction is optional.  Similar to NY SDI, the employee deduction amounts for NY PFL would remain in the employer's bank account to be used to help pay the NY PFL insurance premiums.   If the employer decides to not withhold from the employee it will still need to pay the entire premium amount to the insurance carrier.  




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