Effective January 1, 2018, employers will be required to implement the New York State Paid Family Leave (PFL) program. It’s important that all employers understand their role in covering their employees, so we’ve put together a quick list of employer responsibilities.
If you have any questions about the new law we urge you to call us at 315.792.0000. We can help you understand what you need to do and how the law effects your employees. The main point for employers is that the Paid Family Leave Act will be automatically included on your New York State DBL policy.
Which Employers Must Comply with PFL?
- Employers subject to the New York State Statutory Disability Law (DBL) are also mandated to provide eligible employees PFL.
- Employers covering employees in the private sector with at least 1 employee (not counting the owner).
Which Employers Can Choose to Comply with PFL?
- Employers in the public sector that may elect to choose their participation under PFL, while being excluded from NYS DBL.
- Partners, members of an LLP, sole proprietors, or other self-employed individuals may elect to be covered under PFL.
- PFL coverage may be offered to out-of-state employees covered by a New York State employer, subject to the underwriting carrier’s considerations and approval.
Who Pays for PFL and How Much?
Employees are responsible for paying their share of the PFL premiums through payroll deduction. But employers can elect to either pay all or a portion of the premiums. If an employer pays all of the premium, they can opt out of the payroll deduction.
Premiums are calculated at 0.126% of the employee’s weekly wage. That amount is capped at a weekly wage of $1,305.92. So, the maximum weekly contribution from an employee is $1.65 per week.
Employer PFL Preparation
Employers must review their administrative processes to accommodate changes in maintaining eligibility, payroll contributions, billing, policy documents, and informational bulletins on behalf of their employees.
Current leave policies and disability claims submissions procedures should also be reviewed. All of this to be sure of full compliance with the law’s requirements.
Also, employers are required to post a notice in plain view where all employees and applicants can readily see it with information about PFL, including how to file a complaint. This includes notice in a language other than English that the employees understand.
Our Advice to Central New York Employers
Employers and their insurance advisors must work together to ensure that they take steps to increase awareness and education of the benefits for their employees.
If you have questions, please call us at 315.792.0000. And if you’re not a client? Feel free to call us anyway. We’re here to help employers navigate this new law for their benefit and the benefit of their employees.
Until next time,
Your SZW team
PS. This summary is subject to change and is not meant as a legal document.
PPS. Reminder: We’ve moved to 120 Lomond Court, Utica, NY 13502. Our phones, fax, email, and website remain the same.
SZW Insurance is your New Hartford area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.