The state of New York is paving the way to the nation’s strongest paid family leave policy, which takes effect January 1, 2018. This new program – available to employees at private organizations with more than one employee – offers paid time off to bond with a new child, care for a sick family member or help relieve family pressures when a family member is called into active military service.
Of course, any added benefit can create a lot of potential changes for employers, and since the paid family leave benefit will be rolled out gradually, it will be even more important for businesses to stay in compliance with changing regulations. Employers will be required to purchase a paid family leave insurance policy or self-insure. Policy premiums will be fully funded by your employees, and these payroll deductions can start as early as July 2017. This means payroll systems must be adjusted to accommodate paid family leave contributions, and the sooner the better. Not to mention other benefits, such as short-term disability, may need to be modified.
One thing to note is that even if your business isn’t subject to the Family Medical Leave Act (FMLA) – which mandates that companies provide unpaid leave for employees with more than 50 employees within a 75-mile radius – the paid family leave program will still most likely apply. Employees are eligible for paid family leave after working full-time for their employer for 26 weeks or part-time for 175 days.
When fully phased-in – starting with eight weeks in 2018 and offering families 12 weeks of paid family leave by 2021 – New York will have the longest and most comprehensive paid family leave program in the nation.
Max # of Weeks (in 52-week period)
Percentage of Employee Salary
Cap Percent of the State Average Weekly Wage
Remember, Heartland offers HR and payroll solutions to keep you in compliance with any changing federal and state regulations no matter where you operate or how many times the law changes. Our experts can help you better understand how this affects your business so you can stay ahead of changes. Call us today at 877-729-2968