Employers May Begin Deductions for Paid Family Leave on July 1, 2017

Written by Daniel W. Morris

Although New York’s requirement for employers to provide Paid Family Leave to their employees does not go into effect until January 1, 2018, employers may begin to make deductions from employees’ wages to offset the cost of family leave insurance on July 1, 2017.

Under the law, paid leave benefits are financed by employee payroll deductions and employers are not required to directly fund the family leave benefit. Under regulations issued by the State of New York, an employer may deduct .126% of an employees’ wages, up to the statewide average weekly wage of $1,305.92. Employers can use those deductions to purchase family leave insurance or to self-insure. The July 1, 2017 change is permissive. Employers are not required to either make deductions or provide paid leave on that date.

Employers that have not done so all ready, should begin to plan for how they will comply with the Paid Family Leave Act so that they can make the appropriate adjustments to their business practices and communicate any changes to their payroll provider and employees. Proposed regulations implementing the paid family leave law are open for public comment through June 23, 2017. We will provide updates on any significant change to the final regulations.

If you have questions about this update, please contact the author of this article or an attorney at Clifton Budd & DeMaria, LLP.

About the Author
Daniel W. Morris
Daniel W. Morris serves as Partner at Clifton Budd & DeMaria, LLP. He focuses his practice on employment litigation in...
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