Dear Friend:
As you may already be aware, New York State recently passed a law mandating all employers provide a paid family leave insurance policy to all employees. You need only one employee to be covered; you must hold their position for them. Your employees pay for it and no one can opt out.
While the leave law does not take effect until January 1, 2018, the payroll deductions required to cover the policy cost go into effect JULY 1 2017.
All disability insurance carriers doing business in New York must offer the policy, and it should be tacked onto and billed along with your current disability coverage. Contact your carrier soon to make sure you have the quote you need to begin deductions. Contact your payroll service as well to make sure the employee deductions are accurate and in place in time.
A few more details about the Law and its implementation that you should be aware of:
- Employees become eligible after 26 weeks F/T or 175 days P/T employment
- In January 2018, the benefit is 50% of average weekly wage while it increases to 67% by 2021
- In January 2018, the benefit is for 8 weeks while it increases to 12 weeks by 2021
- The policy covers family care; child birth, adoption and fostering; active military duty
Please make sure your employee policy manuals are updated. We expect that the State Labor Department will be providing posting and notice format requirements in the coming weeks. Please let us know if we can be of service while you come into compliance.
In the Rochester Office:
Director of Law Division
(585) 218-9999
In the Brooklyn Office:
(718) 215-5300 Ext. 546
