New York State’s Paid Family Leave Law became effective January 1, 2018 with a four-year phase in.
The Department of Financial Services completed its evaluation of the financial health of the paid family leave program and will once again apply the statutory increases for 2021.
Employees are able to take paid family leave to bond with a new child, care for a sick family member, or assist loved ones when a family member is deployed on active military service. Employees who need to quarantine or care for a family member during quarantine may also qualify for leave. The amount of leave available increases to 12 weeks for claims beginning in 2021.
The paid leave benefit an employee can receive is increasing to 67% of the employee’s average weekly wage (AWW), capped at a maximum of $971.61. The maximum benefit is calculated based on 67% of the State Average Weekly Wage (SAWW) of $1,450.17, defined as the average weekly wage paid in New York State during 2019.
The employee contribution will increase in 2021 to .511% of an employee’s gross wages each pay period. This includes a .005% risk adjustment for COVID-19 quarantine claims. The maximum annual employee contribution will be $385.34.
Karen Hooper, CEBS, CMS, Fellow, is a Vice President and Senior Compliance Manager working closely with the Lead Benefit Counsel in Newfront's Employee Benefits division. She works closely with internal staff and clients regarding compliance issues, providing information, education and training.
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