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 (NY PFL) now allows eligible workers to take partially paid leave for certain caretaking responsibilities. Whether your employee is making room for a new child or needs some time to tend to a loved one, in 2019, NY PFL provides 55% salary continuation, up to a maximum weekly benefit amount of $746.41, for up to ten weeks. The duration of leave and amount of benefits paid will increase annually through January 1, 2021.

Want to learn more on NY PFL policy? Get the guide.

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

Your employee can claim NY PFL 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 NY PFL.

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 NY PFL if they do not expect to fulfill this time-worked requirement.

When do New York Paid Family Leave benefits kick in?

The moment your employee takes leave is the moment NY PFL benefits begin, with the exception of employees who are giving birth.

Birthing parents may be eligible to take both short-term disability and NY PFL, but not at the same time. Typically, NY PFL 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 benefits conclude, NY PFL benefits can start anytime within 52 weeks of childbirth.

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

What to do next

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

Discover best practices, benchmarks, and laws to consider when creating your parental leave policy in this video by Justworks.

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.