On January 1, 2018, New York's Paid Family Leave
Benefits Law ("PFLBL") became effective. The
PFLBL provides eight weeks of total paid time off for employees who
work for twenty or more hours per
week (after twenty-six consecutive weeks of employment) and
part-time employees who work less than
twenty hours per week (after one hundred and seventy-five days of
work, consecutive or otherwise). Below
are a few key steps that New York employers should take to be
compliant with the new law:
- Obtain Insurance. The PFLBL requires private
employers to purchase paid family leave
insurance. These policies are paid for by employee payroll deductions. It is strongly advised to
inform any and all employees before withholding such contributions. - Update Payroll Contribution Processes.
Employers should make sufficient changes to payroll
processes to accommodate the collection of employee contributions needed fund paid family leave
insurance. The 2018 payroll contribution rate is set at 0.126% of an employee's weekly wage with
a maximum cap of $85.56. - Change Handbooks and Manuals. Employers will
want to document their compliance with the
new law in their handbooks and employee manuals. In addition, employees may want to institute
policies so that employee leave under various regulatory schemes is taken concurrently, rather than
consecutively. Otherwise, employees extend their time away from work by linking together the
eight weeks of paid leave under the PFLBL, the 12 weeks of unpaid leave under the FMLA, and
perhaps other leave policies. - Record keeping. Employers are required to
conspicuously maintain the notices indicating proof of
coverage readily viewable by all employees. - Obtain Written Waivers for Ineligible
Employees. If an employee does not fall within the
purview
of the PFLBL, the employer may provide them with a waiver form to preclude such employees
from coverage.
There are many other considerations for employers to consider in
order to ensure compliance and the least
disruption of its workforce.
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.