The Department of Financial Services (DFS) has issued a much-anticipated document setting the maximum employee contribution to pay for New York Paid Family Leave (PFL) at 0.126% of an employee’s weekly wage, up to the statewide average weekly wage. With a current average weekly wage of $1,305.92, this means that employee contributions will initially be capped at $1.65 per week.
The document, dated June 1, 2017, is available on the DFS’s website here.
These employee contributions are intended to be the sole funding source for PFL benefits. Of course, it remains to be seen whether the employee premium rate set by the DFS will cover the full cost of the benefits required.
With the PFL implementation date of January 1, 2018 fast approaching, carriers and employers had been anxiously awaiting the release of the employee contribution rate. With the 2018 rate now set, carriers and employers can begin making educated decisions about offering, obtaining, and administering PFL benefits.
Under the Workers’ Compensation Board’s current proposed regulations, employers are permitted (but not required) to begin collecting employee contributions for PFL as early as July 1, 2017. Covered employers will be required to provide PFL benefits to eligible employees beginning January 1, 2018.