As we recently reported, the New York Workers Compensation Board has issued revisions to its proposed rules for implementation of the New York Paid Family Leave Law ("PFLL"). Subsequently, on June 1, 2017, the New York State Department of Financial Services ("DFS") issued a statement setting forth the maximum employee contribution rate for PFLL coverage beginning January 1, 2018.
Paid family leave benefits under the PFLL will be funded entirely through employee payroll deductions. According to the DFS statement, because PFLL benefit amounts will be based on a percentage of an employee's weekly wage up to a cap based on the New York State average weekly wage ("NYSAWW"), the maximum employee contribution will be based on a similar capped percentage. Thus, for coverage beginning January 1, 2018, the maximum employee contribution will be 0.126% of an employee's weekly wage not to exceed the NYSAWW (currently $1,305.92).
Going forward, the PFLL authorizes the DFS to set the maximum employee contribution on an annual basis on or before September 1 of each year.
Maximum Employee Contribution Rate Announced for New York State Paid Family Leave Law
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
