Get Ready for Paid Family Leave

March 15, 2017 at 8:27 am Leave a comment

Although efforts to repeal and replace the Affordable Care Act are getting all the attention, as New York employers, credit unions have much more immediate concerns.  The State is now accepting comments on proposed regulations implementing paid family leave. 

Beginning January 1, 2018 the state will start phasing in the new mandate under which employees will be eligible to receive some pay during the time they are away from their job in order to bond with a child, care for a close relative who has a serious health condition, or help care for family of someone who is called to active duty.  For example, starting in 2018, an eligible employee would receive 50% of their salary for a maximum of 8 weeks during a 52 week period.  When it is fully phased in by 2021, employees could receive up to 12 weeks of paid family leave in an amount equal to 67% of their salary.  However, the payment benefits are capped to a percentage of the State’s average weekly wage.  To be eligible, an employee must have been with a covered employer full time for 26 weeks or part time for 175 days.  Covered employers are those covered by the Workers Compensation Law.

If all goes according to plan, employees will pay for the expanded benefit through payroll deductions analogous to contributions that support the Workers Compensation Fund.  I have my doubts, but the time for questioning the wisdom of the proposal is over and the time for getting your HR person focused on compliance has begun.

As with all complicated regulations, the devil is always in the details, particularly when we are dealing with an area of law that interacts with existing federal mandates.  Please feel free to reach out to the Association if you spot something that needs clarification.  By the way, my kids just got their second consecutive snow day.  I understand completely why states like North Carolina and Georgia get crippled by snow storms but something is wrong when upstate New York can’t handle a two-footer.  Are we becoming a state of wimps?

Entry filed under: Compliance, HR, New York State, Regulatory. Tags: .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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