Adviser Fall 2017 Dec. | Page 30

Under Pressure ... Continued

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New York Paid Family Leave On April 4 , 2016 , Governor Andrew Cuomo signed the New York Paid Family Leave Benefits Law (“ NYPFL ”). Once fully implemented , the NYPFL allows eligible employees to take up to 12 weeks of paid family leave . The PFL will go into effect on January 1 , 2018 .
The NYPFL allows employees to take a paid leave of absence : ( 1 ) to provide care to a family member due to the family member ’ s serious health condition ; ( 2 ) to bond with a new born child during first year of child ’ s life or first year of adoption of child ; and ( 3 ) for any qualifying reason as provided for under the Federal Family and Medical Leave Act arising from the employees ’ spouse , domestic partner , child , or parent being on active military duty . In contrast with Federal Family Medical Leave Act ( FMLA ), the NYPFL does not allow the employee to take paid leave for his or her own medical condition or circumstance .
The NYPFL entitles employees to full job reinstatement once any employee returns from paid family leave . In addition , an employer may not discriminate or retaliate against employees for taking or inquiring about paid family leave .
The NYPFL provides that both full-time and part-time employees are eligible for paid family leave benefits . Full-time employees ( those who work more than 20 hours per week ) are eligible for leave benefits after 26 consecutive weeks of work for the employer . In contrast , part-time workers ( those who work less than 20 hours per week ) are eligible for leave benefits once they have worked 175 days in such employment .
The NYPFL sets forth a maximum number of weeks that eligible employees will be entitled to paid leave for any 52-week calendar period . In addition , the employee will receive a specified percentage of their average weekly wage while on leave . Both the number of weeks available to employees and the maximum weekly benefit will be gradually increased over the next several years . For example , in January 1 , 2018 , employees will be eligible for a maximum of 8 weeks of benefits
and they will be paid 50 percent of the employee ’ s average weekly wage — capped at a maximum of 50 percent of the statewide Average Weekly Wage .
The Average Weekly Wage (“ AWW ”) is determined annually following a comprehensive analysis by the NYSDOL . The NYSDOL computed the AWW for calendar year 2016 to be $ 1,305.92 per week . The NYSDOL makes its determination based on the prior calendar year wages reported by the Commissioner of Labor to the Superintendent of Financial Services on March 31 of each year . Thus , in 2018 the maximum paid benefit to all employees will be $ 652.96 per week . The following chart illustrates the increase in maximum available benefits for the NYPFL over the next several years .
NYPFL Implementation of Benefits
Year
Maximum Weeks
% of Weekly
Max Weekly
of Benefit
Wage Benefit
Benefit
2018 8 50 % $ 652.96
2019 10 55 % $ 718.26 * 2020 10 60 % $ 783.55 * 2021 12 67 % $ 874.97 *
* Calculated using the Average Weekly Wage of $ 1,305.92 released in March of 2017 for the year 2016 . Thus , this number is subject to change based on the Average Weekly Wage ( AWW ) of subsequent years
Paid family leave benefits will be financed by deductions from employee pay . No employer is required to fund any portion of the paid family leave benefit . Those funds will then be used to pay premiums on paid family leave insurance . The maximum employee contribution consists of 0.126 percent of an employee ’ s weekly wage up to the AWW . Thus , the maximum weekly employee contribution to paid family leave benefits is $ 1.65 ($ 1,305.92 x . 00126 = $ 1.65 ). On July 1 , 2017 , employers were permitted to collect weekly employee contribution for paid family leave for coverage beginning on January 1 , 2018 .
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29 Adviser a publication of LeadingAge New York | Fall 2017