Seyfarth Synopsis: The New York State Department of Financial Services has set the amount of the maximum weekly employee contribution at 0.126% of an employee’s average weekly wage or the statewide average weekly wage, whichever is less.
As expected, in a decision dated June 1, 2017, the Superintendent of the New York Department of Financial Services (“DFS”) has set the weekly employee contribution amount and the premium rate for Paid Family Leave at 0.126% of an employee’s average weekly wage, or the statewide average weekly wage, whichever is less, for 2018.
Consistent with DFS’ final regulations adopted on May 31, 2017, the Superintendent has set the amount for the employee contribution to be a percentage of employee income. For those earning less than the statewide average weekly wage, the contribution will be a percentage of the income they earn. For those earning more, the contribution amount will be capped at 0.126% of the statewide average weekly wage. Beginning in 2018, the rate will be published by September 1 each year for the following January 1.
The statewide average weekly wage is reported by the New York State Department of Labor on July 1 of each year pursuant to Workers’ Compensation Law § 2(16). The statewide average weekly wage for 2016 is $1,305.92.
Employers should note that they are permitted, but not required, to begin collecting premiums on July 1, 2017, for the 2018 benefit year in advance of the law’s January 1, 2018 effective date pursuant to the proposed regulations. See our earlier alerts on the law , proposed regulations, and revised proposed regulations for more information. We will continue to track further developments with New York’s Paid Family Leave Law as they occur.