Dear Payroll Clients and Business Owners:  

On April 4, 2017, Governor Andrew Cuomo signed the Nation’s first 12- week* Paid Family Leave Law, which provides 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. Employees are also guaranteed to be able to return to their job, and continue their health insurance, under this new law. 

Key points to be aware of:

New York’s Paid Family Leave is entirely employee-funded.  The benefit is paid for by employees.As of January 1, 2018, employers must either begin taking deductions from employees, or cover the premium cost. (Note: Employers may begin payroll deductions from employees as early as July 1, 2017, in advance of the January 1, 2018 effective date.)   The weekly contribution rate (deduction) for Paid Family Leave Benefits is 0.126% of the employee’s weekly wage (capped at New York State’s current average weekly wage of $1,305.92).  (Note: A maximum contribution of $1.65 per week per employee.)Full-time employees must be employed by the employer for at least 26 consecutive weeks to be eligible for paid leave. Part-time employees must be employed by the employer for at least 175 days to be eligible for benefits.  (Note: When the need for family leave is foreseeable, employees must generally provide at least 30 days notice to their employer if possible.) When combined with vacation and personal leave company policies, employers may offer employees the option of using any accrued, unused paid vacation or personal leave during family leave and receive their full salary. Employers that pay employees their full salary during family leave may request reimbursement from the state. (Note: The job reinstatement requirement still applies to employees who use vacation or personal leave during family leave.) 

More information on New York’s Paid Family Leave program can be found at: 

      https://www.ny.gov/programs/new-york-state-paid-family-leave 

 

*When fully phased-in year 2021.  See link to www.ny.gov for more details on phase-in dates for length of benefits.