What is the Law?
On April 4, 2016, Governor Andrew Cuomo signed legislation enacting the NYS Paid Family Leave Act. Effective January 1, 2018, this law will officially go into effect.
The Paid Family Leave Act, or “PFLA”, will give all employees in New York the right to take a leave of absence in the event of one of three qualifying events. These events are:
PFLA will be rolled out over a four year period beginning January 1, 2018. Each year the benefit to the employee will escalate:
The salary percentage benefit will be capped at a figure of approximately $650 for 2018, which is based upon 50% of the New York State Average Weekly Wage (NYSAWW). This will also change based on fluctuations in the NYSAWW and the escalating salary percentage each year until 2021.
How Does This Affect NYS Employers?
Within this ruling, NYS has set up guidelines in regards to how this benefit will be paid for. PFLA states that this will be paid by employers via their Statutory Disability policies. New York Disability carriers can begin collecting premium for this coverage effective July 1, 2017 in order to build reserves for payment of claims made for this act.
There are a few items employers should be aware of going forward:
For more information regarding this law, please speak with an insurance professional or visit New York State’s website: