Preparing for the New York Paid Family Leave Program

New York employers only have a few more weeks left before the new New York Paid Family Leave becomes effective. Starting January 1, 2018, an employer with employees working in New York for 30 or more days in a calendar year must obtain Paid Family Leave coverage. This includes employers located outside of New York with one or more employees in New York.

The Paid Family Leave will provide coverage for parents during the first 12 months following the birth, adoption or fostering of a child. The leave will also provide coverage for employees caring for a spouse, domestic partner, child, parent, parent-in-law, grandparent, or grandchild with a serious condition. Under the law, a serious condition is defined as “an illness, injury, impairment, or physical or mental condition that involves: inpatient care in a hospital, hospice, or residential health care facility; or continuing treatment or continuing supervision by a health care provider.” Lastly, the Paid Family Leave will cover employees assisting loved ones when a spouse, child, domestic partner, or parent is deployed abroad on active military duty. In the first year, the law will provide employees with 50% of their average weekly wage for up to eight weeks. The amount of paid leave benefits will increase annually until 2021, when employees will receive 67% of their average weekly wage for up to 12 weeks.

An employee must have a regular work schedule of 20 or more hours per week to be entitled to the leave after 26 weeks of employment. Employees with a regular work schedule of less than 20 hours per week will be eligible after 175 days. Employees should provide a 30-day notice of their intention to use Paid Family Leave. If an advance notice is not possible, employees should do it as soon as possible. A claim form, which will be available from the employer, insurance carrier, or the Paid Family Leave website, must be fill out. The insurance carrier will have 18 days of receiving the claim to pay or deny the claim.

Employers must continue an employee’s health insurance while he or she is on leave. Employers may require employees to pay their health insurance premium contributions. The law prohibits employers from discriminating or retaliating against employees for requesting or taking Paid Family Leave. When an employee returns from the leave, he or she must be reinstated to the same or comparable job.

What must employers do?

Employers should contact their disability insurance carrier about obtaining Paid Family Leave coverage. Generally, Paid Family Leave insurance will be added to the disability insurance policy employers have, and will be fully funded by employees through payroll deductions. Employers that are self-insured for disability must purchase a separate Paid Family Leave policy or apply to self-insure for disability. Employers that will be offering voluntary disability insurance benefits to employees must notify employees and the Workers’ Compensation Board on or before December 1^st, whether Paid Family Leave will be provided. Employers are also responsible for updating employee handbooks to include information regarding employees’ rights under the Paid Family Leave.

Insurance carriers will be providing a Notice of Compliance to prove an employer has Paid Family Leave insurance. Employers will have the obligation to display the notice in their place of business. For more information, employees and employers can call the Paid Family Leave helpline at (844) 337-6303. CPC will continue to monitor this legislation in the event that the New York Department of Labor releases a notice concerning the Paid Family Leave.