On January 1, 2018, the New York Paid Family Leave (“PFL”) Law will become effective. Eligible employees who take PFL will continue to receive a portion of their wages while on leave. They will also be guaranteed reinstatement and their health coverage will be continued during the leave as long as they pay their share of the premiums, if any. The law is currently designed to be fully paid for by employees.
Virtually all employees of private employers in New York are eligible for PFL coverage. To be eligible: (a) an employee who works at least 20 hours per week must have worked for the employer for at least 26 weeks and (b) an employee who works less than 20 hours per week must have worked at least 175 days for the employer. Employees of a public entity, such as a municipality, may be eligible for PFL if the employer elects to participate.
Paid family leave may be taken (a) to bond with a child within 12 months of the child’s birth, adoption or foster placement (even if the child was born or placed prior to 2018), (b) to care for a family member (spouse, child, parent, parent‑in‑law, domestic partner, grandparent or grandchild) who has a serious health condition, and (c) due to qualifying events related to a family member’s active military duty deployment. An employee may not take PFL for his/her own illness or disability although the employee may be eligible for disability or Workers’ Compensation benefits.
Coverage for the New York PFL is paid for by employees through payroll deductions. For 2018, the maximum employee contribution will be 0.126% of an employee’s weekly wage up to the annualized NYS Average Weekly Wage as determined each year by the NYS Department of Labor or $1.65 per week. Employers may have started deductions as early as July 1, 2017 even though coverage doesn’t start until 2018. Starting deductions early will result in greater reserves to fund the benefits for insurers or, in the case of self-insured plans, employers.
Deductions are taken from an employee’s pay during the initial service period even though the employee is not yet eligible for PFL. Participation in the program is mandatory unless the employee will not satisfy the initial service period based on his regular work schedule.
PFL is scheduled to be phased in over four years starting in 2018 based on the following:
| Year | Weeks Available |
Max % of Employee Average Weekly Wage | Cap % of State Average Weekly Wage |
| 2018 | 8 | 50% | 50% |
| 2019 | 10 | 55% | 55% |
| 2020 | 10 | 60% | 60% |
| 2021 | 12 | 67% | 67% |
The maximum PFL may be taken within any 52‑week period and may be taken intermittently. If the reason for the leave is foreseeable, an employee must provide 30 days’ advance written notice. If it is not foreseeable, the employee must provide notice as soon as practicable. If an employee is taking intermittent leave, the employer may require the employee to provide notice before each day of intermittent leave. An employer may require that PFL be taken concurrently with FMLA as long as employees are notified
Effective January 1, 2018, every policy providing NYS Disability Benefits must include PFL benefits in the disability policy and the insurer is responsible for paying the PFL benefits even if employer hasn’t updated the policy to cover such benefits. An employer who purchases disability insurance benefits from the NYS Insurance Fund or a private insurer must purchase PFL coverage from the same carrier.
Private employers who self‑insure for NYS Disability Benefits may elect to self‑insure PFL benefits.
The New York State Department of Taxation and Finance has issued guidance on the taxation of benefits and the tax treatment of the deductions from an employee’s pay. Pursuant to this guidance:
Employers should take the following steps to comply with the PFL Law: