As 2023 approaches, employers should update employee payroll deductions (and any applicable employer contributions) with the 2023 rates for state-mandated short-term disability (STD) and paid family and medical leave (PFML).
Employers should also ensure they are using the most up-to-date STD/PFML model workplace posters and notices, which some states update annually. Further, some states require employers to notify employees annually of their rights or of PFML rate changes before they are implemented.
Outlined below are updates to the state-mandated STD and PFML rates and model posters/notices available at the time of this article.
Short Term Disability
| State | 2023 Premiums | 2023 Notice Updates |
| California Disability Insurance (DI) | Funded by EEs: 0.9% of wages, up to $153,164, for both DI & PFL | • Display mandatory poster (no 2023 updates) • Provide brochure to new hires, when an EE is eligible, & upon EE’s request (no 2023 updates) |
| Hawaii Temporary Disability Insurance | Funded by EEs: 0.5% of wages, up to $6.59/week | • Display mandatory poster (last updated 9/20) |
| New Jersey Temporary Disability Insurance | Funded by ERs: Vary from 0.1% to 0.75% on the first $41,000 earned by each EE (up to $308.25) | • Display mandatory poster (last updated 4/19) |
| New York Disability Benefits Law (DBL) | Optional EE Deduction: Permitted 0.5% wage deduction, up to $0.60/week, to fund mandatory DBL insurance | • Post notice of compliance (provided by employer’s DBL/PFL carrier) • Provide Statement of Rights (Form DB-271S) within 5 days of learning an EE is disabled (model notice updated for 2023) |
| Rhode Island Temporary Disability Insurance (TDI) | Funded by EEs: 1.1% of wages, up to $84,000, for both TDI & TCI | • Display required combination poster |
Paid Family & Medical Leave
| State | 2023 Premiums | 2023 Notice Updates |
| California Paid Family Leave (PFL)* | Funded by EEs: 0.9% of wages, up to $153,164, for both DI & PFL | • Display mandatory poster (no 2023 updates) • Provide brochure to new hires, when an EE is eligible, & upon EE’s request (no 2023 updates) |
| Connecticut Paid Leave | Funded by EEs: 0.5% of wages, up to $160,200 | • Effective 7/1/22, provide notice to EEs at hire & annually thereafter (last updated 5/22) |
| Massachusetts Paid Family and Medical Leave | Funded by EEs & certain ERs: 0.63% of wages (0.318% for ERs with fewer than 25 covered individuals) For additional details, see the official MA FPML website. | • Display updated 2023 required poster • Provide notice within 30 days of hire (model notice updated for 2023) • Notify employees of updated rates 30 days in advance of change (model notice updated for 2023) |
| New Jersey Family Leave Insurance (FLI) | Funded by EEs: 0.06% of wages, up to $156,800 | • Display mandatory poster (last updated 4/19) • Provide FLI informational handouts at hire, upon request, and when an EE requests an FLI leave (last updated 1/22) |
| New York Paid Family Leave (PFL) | Optional EE Deduction: 0.455% of wages (max annual contribution of $399.43) to offset the cost of mandatory PFL insurance | • Post notice of compliance (provided by employer’s DBL/PFL carrier) • Include PFL information to EEs (model language for employee handbooks & other written materials updated for 2023) |
| Rhode Island Temporary Caregiver Insurance (TCI) | Funded by EEs: 1.1% of wages, up to $84,000, for both TDI & TCI | • Display required combination poster |
| Washington State Paid Family and Medical Leave | 0.8% of wages, up to $160,200 (ERs with 50+ WA-based EEs must pay at least 27.24% of the premium) | • Display updated 2023 mandatory poster • Provide optional paystub insert with 2023 rates • Provide notice to employees who are taking qualifying leave (last updated 3/21) |
| Washington, D.C. Paid Family Leave (PFL) | Funded by ERs: 0.26% of wages with no maximum (effective since 7/1/22) | • Display the updated mandatory notice (updated annually in October and required to be posted no later than the following February) • The notice must also be provided to EEs upon hire, annually, & when PFL is needed |
| Paid Leave Oregon** Benefits begin in September 2023 | 1% of wages, up to $132,900 (EEs pay 60% of the premiums; ERs with 25+ EEs pay 40% of the premium) | • Display the required notice & provide it electronically or by mail to remote employees by 1/1/23 |
| Colorado** Paid Family & Medical Leave Insurance Program Benefits begin in 2024 | 0.9% of wages, up to $160,200 (ERs with 10+ EEs nationwide must contribute at least ½ of the premium) The 0.9% rate will be in effect through 2025. | • Display the required notice by 1/1/23 |
*The 2023 maximum weekly benefit amount for CA PFL is $1,620. The CA PFL maximum weekly benefit amount is relevant for purposes of determining required supplemental compensation under the San Francisco Paid Parental Leave Ordinance (SF PPLO). SF PPLO requires employers with 20 or more employees worldwide to provide supplemental compensation to eligible San Francisco employees who are receiving CA PFL benefits for purposes of child bonding. For 2023, the SF PPLO maximum is $2,700 per week (which includes CA PFL benefits plus SF PPLO supplemental compensation). For more on SF PPLO, see the official website.
**Sequoia One PEO Clients Only: Sequoia One will begin collecting & remitting both the employer and employee share of the premiums for Oregon and Colorado beginning 1/1/23.
For a discussion of 2023 changes for state paid family & medical leave for Colorado, Oregon, New York, see our blog.
Employer Action Items
- Employers with employees that work in states with mandatory STD and/or PFML should ensure applicable employee payroll deductions and employer contributions are updated with 2023 rates in time for January 1st.
- Employers should update any applicable workplace posters and notify employees of updated rates, as required.
Sequoia One PEO Clients Only: Sequoia One will automatically update employee payroll deductions and any applicable employer contributions with the new rates. Clients are responsible for displaying workplace posters and providing employees with any required annual notice or notice of updated rates. Clients should reach out to their Sequoia One HR Business Partner with any questions.
Additional Resources
Sequoia Foreword: 2023 Changes for State Paid Family & Medical Leave, Colorado, Oregon, New York & More
California
Colorado
Connecticut
Hawaii
Massachusetts
New Jersey
New York
Oregon
Rhode Island
Washington State
Washington, D.C.
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. © 2022 Sequoia. All Rights Reserved.
