How Will New York's Paid Family Leave Law Impact You?

Author: Jody Rodney/Wednesday, July 5, 2017/Categories: Compliance Corner

On April 4, 2016, New York’s Governor signed the Nation’s first 12-week Paid Family Leave law (“PFL”), providing wage replacement to employees to help them bond with a child, care for a close relative with a serious health condition, or help relieve family pressures when someone is called to active military service. Under this law, employees are guaranteed job protection and continued health insurance during a covered leave.

Initial proposed regulations were published on February 22, 2017. In response to comments received, a second set of proposed regulations was published on May 24, 2017. The comment period closed Friday, June 24, 2017.
We have created the below Employer Checklist to help you understand your action items relative to this new law.

Employer Checklist:

• Decide who will meet eligibility thresholds as of January 1, 2018 (Eligible FT Employees = 26 consecutive workweeks; Eligible PT Employees = 175 days).
• Anticipate whether new hires between now and January 1, 2018, will work enough weeks/hours to meet the eligibility threshold and provide anyone who will not meet the threshold with a PFL Waiver to sign. New York has not yet issued a Sample Waiver form.
• Purchase a Paid Family Leave insurance policy or self-insure.
• Pay for the insurance premiums through deductions from employees’ pay, not to exceed .126% of their weekly wage, up to a maximum of $1.65 per week starting July 1, 2017 or later.
• Decide when your company will start making the deductions from employees pay (can start any time beginning July 1, 2017).
• Decide how your company will calculate and implement the deductions. If you intend to start deductions before January 1, 2018, you can either: (1) deduct a flat amount, or (2) ask your ADP Service Team to apply a special calculation to eligible employees. See attached, June 27, 2017 Communication.
• Provide eligible employees from whose pay you will be making a deduction, with a Notice. New York has not yet issued a Sample Employee Notice.
• Prepare for covered employees to begin exercising their right to job protected/subsidized leave on January 1, 2018.
• Remember to include the employee’s Paid Family Leave deduction amount in any Wage Theft Prevention Act Notices given to new hires.
• Remember – The Regulations Are Not Final Yet!

Resources

Full text of the proposed amended Regulations can be found by clicking here.
For more information on New York’s Paid Family Leave program, please clicking here.

Please reach out to your Relationship Manager with any questions about the New York Paid Family Leave Regulations.

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How Will New York's Paid Family Leave Law Impact You?