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NYS Paid Family Leave Law Update: Employee Premium Has Been Released!

On June 1st the New York State Department of Financial Services (DFS) announced the premium rate for Paid Family Leave (PFL). The premium is set as a percentage of an employee’s weekly wage, up to the maximum PFL benefit which is based on the New York State average weekly wage (NYSAWW).  The premium rate for 2018 is 0.126%.  The DFS has been authorized to establish the maximum employee contribution amount annually, by September 1 each year.

Using the current NYSAWW of $1305.92, the maximum weekly premium for PFL would be $1.65 per week. The NYSAWW is published each July. The wage rate that will be published in 2017 will be used to calculate the maximum PFL benefit for 2018.  

Employers that self-insure the PFL benefits may begin deducting employee premiums as early as July 1, 2017.   All other NY State employers should contact their insurance carriers for more information on timing of payments and employee premium deductions.  Employers will need to notify employees of the premium deduction prior to the first deduction from paychecks.

The final regulations for the NY PFL are expected to be published by July 2017.

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HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.