New York State Enhanced Paid Family Leave

by James Oliveri

As of January 1, 2018, New York State will make mandatory of all NY employers a Paid Family Leave (PFL) benefit which will be included in an employer’s already mandatory NYS Disability insurance coverage.




Family leave use is by definition and can be an employees’ leave to provide care for a family member, time to bind with the employee’s child, or leave taken arising out of the fact a spouse, domestic partner, child or parent of an employee is on active duty or called to impending order to active duty in the U.S.Armed Forces (as defined under the Federal FMLA). (Please see the attached for definition of a covered family member and detail on all of the foregoing topics).

The premium for this this benefit will be entirely funded by Employee payroll deductions, currently set at no more than 0.126% of an employee’s weekly wages (not to exceed $1.65 per week contribution). The insurance carriers have the right to amend this premium annually.

NY Paid Family Leave will be phased in beginning January 1, 2018 over a 4 year period with benefits increasing each year from 8 weeks of paid benefit to 12 weeks by January 1, 2021 and benefit amount of 50% of the employees average weekly wage, not to exceed the state’s average weekly wage up to 67% by January 1 2021.

As of July 1, 2017, smaller employers who pay DBL premiums each month may begin to deduct and accrue the employee contribution; larger employers who pay their DBL premiums quarterly in arrears may wait until January 2018 to begin deductions.

There is certain criteria for an Employer to comply (a covered employer must have 1 or more employees on each of 30 days in a calendar year) and employee eligibility is also defined as well for both full time and part time employees (a FT employee must work 20 hours or more per week for the covered employer for 26 or more consecutive weeks; part time working fewer than 20 hours per week would be eligible if employed by covered employer for 175 days).

Please note that some of the rules and regulations are still being formulated by NYS Department of Financial Services (Insurance Dept.)

At Signature B&B Companies we are making every effort to keep you informed with the latest information.

Contact us immediately with any questions about this or any other compliance topic.

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