If you’re an employer in New York State, you need to prepare for changes that are coming to the State’s Paid Family leave law which will be a rider on your mandatory Short Term Disability policy and will be provided by the very same carrier.
The new, mandatory Paid Family Leave regulations go into effect January 1, 2018. However, you can begin making preparations by deducting employee contributions beginning July 1 of this year.
New York’s Paid Family Leave is an employee-paid insurance benefit that will mandate up to 12 weeks of job-protected paid leave by 2020 to address family related issues.
NY’s Paid Family Leave Law: Know the Facts
- ALL existing and new disability insurance policies (statutory and enriched) must include a paid family leave rider on January 1, 2018.
- Compliance requirements are different if you’re self-insured.
- The same rates and insurance benefits are available to your male and female employees and the rate is set at 0.126% of an employee’s average weekly wage
- Employees are guaranteed job protection for the same or a comparable job upon return from Paid Family Leave.
- Employees are guaranteed continuation of health insurance while out on Paid Family Leave.
- This benefit cannot be utilized at the same time as Family Medical Leave Act benefits.*
- The combined DBL and Paid Family Leave Benefit is 26 weeks during 52 consecutive calendar weeks
- There are maximum weekly Benefits and rules for how many weeks one is granted over the next three years.
- Premiums are set at 0.126% of an employee’s average weekly wage* (the updated average weekly wage will be released on 7/1/17 for the 2018 PFL calculations).
Examples of Paid Family Leave include:
- Family bonding after birth, adoption of foster care
- Caring for a family member with a serious health condition
- Military service benefit, and more.
Don’t get caught unprepared – review your disability insurance coverage now
Call Schaefer Enterprises for a review of your disability insurance coverage and to understand the implications of Paid Family Leave. We will help you understand the coverage, the benefits, the billing and the claim processing pertaining to this law. We can help you remain in compliance and avoid any penalties that may be assessed for non-compliance. Call 877.237.2481 or contact us here.