Effective January 1, 2018, New York State employers will be required to provide their employees with eight weeks of Paid Family Leave (PFL). This applies to all private employers (public employers are exempt).
PFL is a wage replacement program fully funded by the employee (no cost to the employer) in the following instances:
- Within the first 12 months after a child is born, adopted or fostered (both parents qualify)
- When caring for a close relative with a serious health issue
- When a family member is called into active military service
The paid leave will be 50% of the employees’ average weekly pay but capped at the average statewide weekly wage.
Beginning July 1, 2017, the premium will be deducted from the employee’s wages, calculated at .126% of the employee’s weekly pay. The amount can not exceed .126% of the average statewide weekly wage of $1,305.92; or $1.65 a week.
FPL is designed to phase in over four years where by 2021, employees could receive 67% of their average weekly pay (capped at statewide weekly wage) up to 12 weeks.
- Full-time workers must have worked 26 weeks before taking paid leave
- Part time works must have worked 175 days before taking paid leave
Employers will need to provide notices to employees regarding eligibility, as well as update their policy & procedures to describe how PFL functions with other leave policies. It is important for employers to contact their insurance company who handles the state-mandated disability benefits, as FPL coverage will not be automatic.
Don’t hesitate to contact us if you have any questions.
Kimberly R. Roffi, CPA
Kim, who has been a member of the firm since 2001, has over 19 years of public accounting experience. Today, she is a partner of the firm and previously served as Director for the firm’s tax and business advisory practice and Director of Finance and Operations for the firm internally. Kim has written Practice Insights for Lexis Nexis’ tax research platform and has been published in Building Long Island magazine.