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2018 Paid Family Leave – What You Need To Know About the New Law

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In 2018, New York will implement one of the most complete Paid Family Leave laws in the United States.  The law will be applicable to every employed New Yorker, and the policy will piggy back onto your current business Disability policy.  There are decisions to be made, however, and now is the time to begin the process.
What is Paid Family Leave?

Starting in January 2018, Paid Family Leave (PFL) becomes a mandatory benefit in New York, providing employees with job protection and paid time off for these qualifying events:

  • Providing care for family member with serious health condition
    • Child
    • Parent
    • Spouse
    • Grandparent
    • Grandchild
    • Domestic Partner
  • Bonding leave after giving birth, adoption, or welcoming a child into foster care
  • Qualifying military service

Employees are also guaranteed to be able to return to their job and continue their health insurance. If you contribute to the cost of your health insurance, you must continue to pay your portion of the premium cost while on Paid Family Leave

Benefits

 

Year Weeks Available Max % of Employee Average Weekly Wage Cap % of State Average Weekly Wage Max based on current NY AWW of $1305.92
1/1/2018 8 50% 50% $652.96
1/1/2019 10 55% 55% $718.26
1/1/2020 10 60% 60% $783.55
1/1/2021 12 67% 67% $874.97

Examples: In 2018, an employee who makes $1,000 a week would receive a benefit of $500 a week (50% of $1,000). Another employee who makes $2,000 a week would receive a benefit of approximately $652, because this employee is capped at one-half of New York State’s Average Weekly Wage (NYSAWW) —currently $1,305.92. Half of that amount is the $652 benefit.

The Average Weekly Wage (AWW) is set every year after a comprehensive analysis by the New York State Department of Labor.

Who is eligible?

  • All covered employees working for covered employers in the State of New York
  • Coverage applies to both full and part time employees
  • Full time employees are eligible after 26 weeks of being hired. Part-time employees are eligible after 175 days of being hired.

How it works:

  • PFL coverage will automatically be endorsed onto your Statutory Short Term Disability Policy (DBL) effective 1/1/18.
  • Benefits can be 100% employee funded via payroll deduction or Employer can choose to pay all or part of it.
  • The weekly contribution rate is 0.126% of the employee’s weekly wage capped at the statewide wage of $1305.92 which translates to a maximum contribution of $1.65 per week or just under $86 per year per person.

Important Resources For PFL: