Background: 

New York Paid Family Leave (PFL) is a benefit program that offers paid leave to New York employees while they bond with a new child, care for a close relative with a serious health condition, or when an employee’s family member is called to active military service. The law went into effect January 1, 2018 and enacts a phased-in system of paid leave for eligible workers. New York PFL is funded through employee payroll contributions that are set each year to match the cost of coverage. The employee contribution rate is reviewed annuallyPlease refer to our article, “Get Ready for New York Paid Family Leave,” for more information about eligibility requirements. 

2020Employee Contribution Rate and Benefit Updates:  

In 2020, the employee contribution rate will increase to 0.270% of the employee’s weekly wage (up from 0.153% in 2019) up to and not to exceed an annual maximum contribution of $196.72Employers may start taking deductions at the 2020 rate on January 1, 2020.   

The benefit duration remains the same at 10 weeks, while the maximum weekly benefit amount increases to $840.70 (60% of employee’s average weekly wage capped at 60% of the New York State Average Weekly Wage). Please refer to our article “New York Announces 2020 Paid Family Leave Rates for more information on the benefit increases that take effect January 1, 2020. 

Updated FAQ: 

New York has updated the FAQ section of its website, which clarifies the benefits available under NY PFL to employees who start leave in 2019 and continue leave into 2020. 

If an employee begins leave in 2019 and it extends into 2020, do the 2019 or 2020 NY PFL benefits apply? 

Employees who start NY PFL in 2019 that extends into 2020 will receive benefits at the rate and length that was in effect on the first day of their leave. For example, if an employee started PFL in December 2019 and will continue to be on PFL in January 2020, the employee will receive the 2019 rate, 0.153% of gross weekly wages, for a maximum of 10 weeks. 

If an employee has exhausted the maximum 10 weeks of leave in 2019 under NY PFL, do they qualify for an additional 10 weeks of leave in 2020? 

If the employee experiences another qualifying event in 2020, they may file a new request for PFL and take up to another  10 weeks of leave in 2020 if it has been 52 weeks since the employee’s last leave date. The 52-week period is rolling, meaning that the maximum does not “reset” at the end of the calendar year. 

Resources:  

New York Paid Family Leave 2020 FAQ 

2020 PFL Premium Rate Announcement 

 

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

 

Lizet Ramirez – Lizet is a Client Compliance Manager for Sequoia One, where she works with our clients to optimize and streamline benefits compliance. In her free time, Lizet enjoys live music, travel, hiking and spa days.