New York Paid Family Leave

How employers should prepare

When should we expect final regulations from the state of New York?
When should an employer group begin deducting premium from employees’ paychecks?
  • Under Paid Family Leave (PFL) regulations, you may begin deductions as of July 1, 2017. It is up to you to determine whether you will begin withholding prior to January 1, 2018.
  • If applicable, you will want to begin speaking with your payroll service provider about beginning the employee payroll deduction no later than January 1, 2018.
What do employers need to tell their employees about funding for Paid Family Leave?
  • Paid Family Leave benefits are funded entirely through an employee payroll deduction.
  • The rate will be 0.126% of an employees’ weekly wage up to and not to exceed the statewide average weekly wage ($1,305.92 for the entire year 2018).
  • Inform employees when payroll deductions will begin.
  • Deductions are required by the employee from the first date of employment; unless the employee does not expect to be eligible based on temporary work status and completes a waiver.
What are the most important items to tell employees about eligibility?
  • Full-time employees (20 or more hours per week) are eligible for benefits after 26 consecutive weeks of employment with their current employer. 
  • Part-time employees (less than 20 hours per week) are eligible after working 175 days.
  • Previous time with a different employer does not count toward eligibility.
What benefit guidance should an employer provide to employees?
  • Paid Family Leave benefits are available beginning January 1, 2018. Information on how to request benefits will be available in advance of this date.
  • Benefits are available to eligible employees to take time for bonding, to care for a seriously ill family member or when a family member is called into active military service.
  • Employees cannot receive benefits under the New York State Disability Benefits Law (DBL) at the same time as Paid Family Leave. The total time taken for both DBL and PFL cannot exceed 26 weeks in a 52-week time period.
  • Covered time off is considered job-protected time.
  • The benefit amount and available time will increase over the next several years but is subject to change by the state of New York.

In New York, insurance products (policy series GL111, GL3001) are issued by Lincoln Life & Annuity Company of New York, a Lincoln Financial Group® company. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. Limitations and exclusions apply.