As you may know, New York State has passed a law which requires covered employers to provide partially paid family leave to eligible employees beginning in January of 2018. Covered employers must obtain an insurance policy for Paid Family Leave coverage. The premium payments for this insurance policy are paid by employees via payroll deductions.
If you haven’t already, here’s what you need to do before the end of the year:
- You are obligated to have a written policy or handbook section that advises employees regarding their rights and obligations under the law, and the process to file a claim for benefits – application for military service, application for care of family member, application for bonding.
- Ensure that your NYS Disability carrier has added your PFL rider to your insurance policy so that your coverage is in place. If they have not sent you information regarding this additional coverage by the first week of January, contact them to find out when it will be sent.
- Review the rules to determine whether any of your employees may be eligible for a waiver of benefits, which would also exempt them from payroll deductions for the cost.
- Which employees are exempt from PFL? The following categories of employees are not eligible for PFL and therefore must be provided the waiver form. However, they are not obligated to sign the waiver if they choose not to.
- Employees who regularly work 20 hours or more per week, but will not work 26 consecutive weeks (6 months) for you, or
- Employees who work less than 20 hours per week, but will not work 175 days in 52 consecutive weeks (a year) for you.
Employees in these categories who sign waivers are not subject to payroll deductions and they are not eligible to take leave or receive payments from the insurance company. Waivers must be maintained on file. Download the waiver form here.
- Let your employees know that this coverage will be going into effect and that they will start seeing a deduction on their paycheck. The deduction will be 0.126% of each employee’s weekly wage, up to a maximum deduction of $1.65 per week.
- Let us know when you would like to start implementing payroll deductions for Paid Family Leave, if you’d prefer a date other than your first pay date in 2018.
If we do not hear otherwise from you, we will automatically begin PFL deductions for all employees on your payroll as of January 1, 2018. You must contact us if you’d like deductions to begin on a different date, or if any of your employees have signed the waiver.
If you have any further questions about implementing your Paid Family Leave coverage and deductions, please don’t hesitate to reach out!
Allen Street Consulting