New York Announces 2019 Paid Family Leave Employee Contribution Limit

11/01/18

Author: Jody Rodney/Tuesday, October 30, 2018/Categories: News

Overview: The State of New York has raised the Paid Family Leave Employee contributions limit for 2019.

Details:

Background:

On April 4, 2016 New York Governor Andrew Cuomo signed into law legislation as part of the 2016-17 state budget that provides a 12- week paid family leave policy. The New York benefits were phased-in beginning in 2018 at 50 percent of an employee’s average weekly wage, capped to 50 percent of the statewide average weekly wage, and fully implemented in 2021 at 67 percent of an employee’ average weekly wage, capped to 67 percent of the statewide average weekly wage. Some other highlights of the program are as follows:
  • Eligible employees will be able to take paid leave to:
    • Bond with a new child (including an adopted or foster child) within the first 12 months after the birth, adoption, or placement;
    • Provide physical or psychological care for the serious health condition of the employee’s child, spouse, domestic partner, parent (including stepparent or legal guardian), parent-in-law, sibling, grandchild, or grandparent; or
    • Address certain exigent needs when a spouse, domestic partner, child, or parent of the employee is called to active military service.
  • Paid leave time may be taken intermittently in increments of one full day or one fifth of the weekly benefit.
  • Employers may require paid leave under the law to run concurrently with any unpaid leave to which an employee is eligible under the federal Family and Medical Leave Act (“FMLA”).
  • Provides job protection guarantees for all employees taking leave and requires the continuation of health care benefits during the leave period.
  • The program will be funded entirely through a nominal payroll deduction from employees.
  • Employees are eligible to participate after having worked for their employer for six months.
  • Employees must also provide their employers with written notice and proof of the need for family leave from the family leave care recipient’s healthcare provider. Further, family leave care recipients may be required to undergo a physical examination by a qualified healthcare provider for additional verification.
  • Employers will be required to conspicuously post notice indicating that they have complied with the paid family leave requirements and must provide employees who take paid family leave for more than seven consecutive days a written notice of their rights under the law. Penalties for noncompliance with the notice requirements include monetary fines ranging from $100 to $2,000 and/or potential imprisonment.
The New York Paid Family Leave legislation requires that each September 1, the Department of Financial Services (DFS) must publish the maximum employee contribution that an employer is authorized to collect from each of its employees to fund Family Leave Benefits.

New Rates:

For employees paid weekly, the 2019 payroll contribution is 0.153% of gross weekly wages and is capped at an annual maximum of $107.97. For employees whose gross weekly wages are less than the New York State Average Weekly Wage ($1,357.11 per week), there is an annual contribution amount less than the annual cap of $107.97, consistent with actual wages.

A chart showing the 2018 versus 2019 rates are shown below:

 

2018

2019

*Average Weekly Wage

$1,305.92

$1,357.11

Contribution Rate

0.126%

0.153%

Maximum Contribution

$85.56

$107.97

*Average Weekly Wage is the average weekly wage paid in New York state during the previous calendar year 2017 as reported on March 31, 2018.

Call to Action: Please contact your Service Team or Relationship Manager with any questions.

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