CLIENT UPDATE

Putney, Twombly, Hall & Hirson LLP
521 Fifth Avenue
New York, NY 10175
Tel: (212) 682-0020

 

September 7, 2018

2019 New York Paid Family Leave Employee Contribution and Benefit Levels Released

On August 31, 2018, the New York State Department of Financial Services (“DFS”) released the 2019 Paid Family Leave (“PFL”) premium rate as well as maximum employee contribution for coverage. https://www.dfs.ny.gov/insurance/pfl/dec_prem_rate_2019.pdf. Notably, the DFS also announced that the PFL benefit rate will increase to 55%, an increase that could have been delayed at DFS discretion. Listed below are the 2019 PFL changes to take effect beginning January 1, 2019, compared to the current PFL benefit rate, premium rate, and maximum annual employee contribution for 2018.

2018 and 2019 PFL Program Comparison

 

Weeks
of PFL
Available

Statewide Weekly
Wage


Benefit
Rate

Maximum Weekly Benefit


Premium Rate

Maximum
Annual Employee Contribution

2018

8

$1305.92

50%

$652.96

0.126%

$85.56

2019

10

$1357.11

55%

$746.41

0.153%

$107.97

Takeaway for Employers

In anticipation of the changes beginning January 1, 2019, employers should coordinate with their payroll providers to make sure the new premium rate will be applied. Additionally, employers will need to update any written employment policy documents to the extent that they include specific PFL benefit or deduction levels.

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If you have any questions regarding this alert, or any other issue, please do not hesitate to contact us.