* What is Paid Family Leave?

Under the NY Paid Family Leave Law (PFLL), covered events include pregnancy (maternity or paternity), care of family members with serious health conditions (including spouses/domestic partners, children, parents/parents-in-law, grandchildren and grandparents), and spending time with a spouse/domestic partner, child or parent who is on active military duty or has been called to report for active duty.

* Are All Employees Covered by the PFLL?

To be eligible, employees must have been employed full time for 26 weeks or part time for 175 days, which means virtually everyone employed for 6 months or more will be covered. Employees who are not eligible for PFLL coverage may complete a waiver to avoid having the costs of coverage deducted from their paycheck.

* What PFL Benefits Must Be Provided?

The PFLL will be phased in from 2018 to 2021, with the 2018 rollout providing for up to 8 weeks of leave at 50% of the employee's average weekly wage; by 2021 this will increase to 12 weeks of leave at 67% of the average weekly wage.

* How are PFL Benefits Paid For?

Paid family leave benefits are paid through insurance, the premiums for which are funded entirely through employee contributions. This means you should be preparing to apply new wage deductions for all covered employees to cover the premium costs. Beginning July 1, 2017, employers may start implementing these deductions. As of this morning, the NY Department of Financial Services issued a release setting the maximum employee contribution rate for PFLL coverage beginning January 1, 2018 at 0.126% of an employee's average weekly wage, not to exceed the NY State Average Weekly Wage (currently $1,305.92).

* What Additional Insurance Coverage Is Required?

Employers have 2 options for obtaining paid family leave insurance coverage: (1) add it to an existing insurance policy, such as an employee short-term disability policy, or (2) self-insure. There are a host of regulations that govern the State's approval of qualifying insurance plans, especially in the case of self-insured plans.

* Are There Employee Notice Requirements?

Yes. Employers must provide written guidance to all employees explaining their rights and obligations under the PFLL, including information on how to file a claim for paid family leave. If the employer maintains written handbooks or policies concerning employee leave, the written guidance on the PFLL must be incorporated into these handbooks or policies. Additionally, the employer must display a printed notice of PFLL rights in plain view in the workplace, although the NY Worker's Compensation Board has yet to prescribe the form for this notice.

Should you have any questions regarding paid family leave, please reach out to us and we will be happy to address your concerns.

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