New York Paid Family Leave and Its Impact on Small Businesses

Posted March 22, 2018 by Miranda Geraci-Yee in Keeping Compliant
On January 1, 2018, New York started a new paid family leave policy. What does this mean for your business? Read on to find out.

New York Paid Family Leave (NYPFL) now allows eligible workers to take partially paid leave for up to eight weeks when caretaking. Whether your employee is making room for a new child or needs some time to tend to a loved one, in 2018, NYPFL requires 50% salary continuation up to a maximum weekly benefit amount of $652.96. The duration of leave and amount of benefits paid will increase annually through January 1, 2021.

As an employer, it’s important to note, you are not bankrolling the NYPFL benefit. Instead, the program is fully funded by employee payroll deductions.

Your employee can claim NYPFL benefits for three reasons:

  1. Bonding with a newly born, adopted, or fostered child
  2. Caring for a family member with a serious health condition
  3. Assisting loved ones when a family member is deployed abroad for active military service

We created a guide to help you navigate the New York Paid Family Leave policy. Download the Parental Leaves Comparison Chart now.

Who’s eligible for New York Paid Family Leave?

Most employees who work in New York State for private employers are eligible to take NYPFL.

For full-time employees, benefits can be collected after working 26 or more consecutive weeks for an employer. And part-time employees are eligible for this program after working 175 days for an employer. Employees can only opt out of NYPFL if they do not expect to fulfill this time-worked requirement.

Want to learn more on NYPFL policy? Get the guide.

Download now.

When do New York Paid Family Leave benefits kick in?

The moment your employee takes leave is the moment NYPFL benefits begin, with the exception of birthing parents.

Birthing parents may be eligible to take short-term disability and NYPFL, but not at the same time. Typically, NYPFL will come into play after New York State Disability (DBL) and Voluntary Short-Term Disability (STD) are claimed. These disability programs can run at the same time and begin on the first day the parent is out of office. After the disability policies finish, NYPFL benefits can start anytime within 52 weeks of childbirth.

For new parents that are not eligible for disability, NYPFL benefits begin on the first day the parent is out of office.

What to do next

NYPFL can be difficult to understand, so we’ve made a visual breakdown on parental leave under NYPFL and what that might mean for your payroll. Check out our guide here.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.