New York State Paid Family Leave: Final Regulations Adopted
The New York State (NYS) Paid Family Leave (PFL) Final Regulations were adopted and released on July 19, 2017. You may review the regulations here. The NYS Paid Family Leave was signed into law last year with an effective date of January 1, 2018.
The final regulations clarify several provisions previously addressed in the draft regulations and summarized below. The state has indicated they will release further guidance soon to address specific issues. For additional information on NYS Paid Family Leave provisions, including but not limited to, coverage, eligibility, qualified reasons for leave, benefits, and calculation of payroll deduction amounts, and additional requirements for employers who self-insure, please refer to the resources on the state Paid Family Leave web page at https://www.ny.gov/new-york-state-paid-family-leave/paid-family-leave-how-it-works and the Workers’ Compensation Board and Department of Financial Services final regulations found here.
Under the final regulations:
- Nearly all private employers in NYS must secure Paid Family Leave coverage for their employees.
- Covered employers are required to obtain NYS PFL insurance coverage from their Disability Insurance carrier, or comply with the requirements to self-insure by January 1, 2018.
- NYS PFL coverage is designed to be funded through employee payroll deductions; however, employers may choose to cover the premium payments, and not deduct contributions from employees.
- Employers were permitted to begin employee payroll deductions to pay for PFL as of July 1, 2017. Advantage initiated NYS PFL payroll deductions for most clients as of July 1, 2017, although clients were given the ability to opt out by contacting their payroll specialist. You should contact your payroll specialist at any time if you have a need to stop or start employee PFL payroll deductions for any employee.
- The NYS Workers’ Compensation Board has confirmed that employers are permitted to use their employees’ contributions only to provide PFL benefits, using the funds to pay premiums for PFL coverage. Additional requirements apply for employers who self-insure.
- Employers must provide employees with the option to file a waiver of family leave benefits if their regular work schedule will never allow them to meet the requirements as provided in the regulations necessary to become eligible for PFL.
- Employers must provide each employee with written guidance about their rights to PFL, as prescribed in content and form in the regulations. Employers must also post a notice regarding PFL. Such notice is expected to be made available by the state prior to January 1, 2018.
For additional information, please visit the NYS Paid Family Leave website at https://www.ny.gov/programs/new-york-state-paid-family-leave. Resources are available for employees and employers, including an Employee Fact Sheet and an Employer Fact Sheet. The state also offers a Paid Family Leave Helpline at 844-337-6303 from 8:30 a.m. to 4:30 p.m. ET, Monday through Friday. The Workers’ Compensation Board Final Regulations are available at http://www.wcb.ny.gov/PFL/pfl-regs.jsp.
Thank you for choosing our service. We value your business. If you have any questions, please contact your payroll specialist.