Compliance Bulletin: New York Paid Family Leave

OVERVIEW

New York enacted a bill that will require employers to provide paid family leave benefits to eligible employees as part of the state’s disability insurance program.

Paid family leave benefits will be phased in over a four-year period, beginning Jan. 1, 2018. When the law is fully implemented in 2021, employees may be eligible for up to 12 weeks of paid family leave.

The paid family leave benefits will be funded through employee paycheck deductions. Employers are not responsible for contributing to or funding paid family leave benefits.

ACTION STEPS

New York employers, and employers with employees in New York, should review their existing family and medical leave policies. These policies may need to be revised to comply with the new paid family leave program.

Also, employers will need to comply with the administrative task of deducting the appropriate amounts from employee paychecks to fund paid family leave benefits. Further, employers should prepare for the potential costs related to employee absences during paid family leaves.

Please see attached for more detailed information New York Paid Family Leave Law 06.06.17