Executive Summary
Overview: The New York Paid Family Leave Benefits Law (PFL) is set to take effect January 1, 2018. It will provide eligible employees up to 12 weeks of paid family leave to (1) care for a family member with a serious health condition, (2) bond with a child during the first twelve months after the child’s birth, adoption, or placement in foster care, or (3) attend to a “qualifying exigency.” Leave will be funded through deductions taken from the pay of full-time and part-time employees.
Coverage: All employers with employees in New York.
Effective: January 1, 2018
Action Required: We are currently assessing the impact of the law on the services we provide and will communicate additional details when the implementing regulations are finalized. We are committed to helping you comply with the new requirements.
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The PFL law allows for a phased-in system of up to twelve weeks of annual paid family leave to eligible employees to (1) care for a family member with a serious health condition, (2) bond with a child during the first twelve months after the child’s birth, adoption, or placement with the employee in foster care, or (3) to attend to a “qualifying exigency” related to the fact that the employee’s U.S. military spouse, domestic partner, child or parent is on active duty or has been notified of an impending call or order to active duty.
The law is in some respects similar to the federal Family and Medical Leave Act (FMLA) in that it provides for job and benefits protection. However, unlike FMLA, PFL covers all employers with an employee in New York and also provides for payment during the absence. Where applicable, PFL must be taken concurrent with any leave taken under the FMLA.
Payments to Employees
The PFL law will be funded via deductions from the pay of full-time and part-time employees. According to proposed regulations, the deduction amount (which is in effect similar to an employee tax) is scheduled to be set by the New York State Superintendent of Financial Services on or before June 1, 2017. Employers can begin collecting the weekly contribution amount on July 1, 2017, and employees may begin taking leave on January 1, 2018. We are currently reviewing our payroll systems in order to ensure that we are ready to process these deductions.
Employee Notice Requirements
If the proposed regulations remain unchanged, employers will be required to update their employee handbooks to include information about the PFL. If you do not maintain an employee handbook, you will have to provide written guidance to your employees about the PFL benefits. Once the state publishes a model form/notice, you will also be required to post a notice about the PFL law in a place where it can be readily seen by all employees and applicants. We will provide clients with a model handbook policy if needed in the future and will notify you when the state publishes the model notice/form.
The comment period for the proposed regulations closed on April 8, 2017, and we expect the agency will release the final regulations in the near future. We will continue to monitor the progress of the regulations and notify you of any further developments.
In the interim, please feel free to contact your Human Resources Business Partner if you have any questions.