Paid Family Leave Rates Released
It has been decided that the rates for Paid Family Leave will be calculated based on a percentage of the employee's salary. The weekly contribution rate for Paid Family Leave is 0.126% of the employee's weekly wage. The amount is capped at New York State's current average weekly wage of $1,305.92*. This is equivalent to a MAXIMUM contribution of $1.65 per week per employee in 2018, regardless of gender, age or other factors.
(*NY Department of Labor releases the updated statewide AWW annually on July 1st.)
Other Important Modifications to the Legislation
The consequences for late PFL entrants have been modified:
- Since they are excluded by default Sole Proprietors, Partnerships, and members of an LLC/LLP (or any other self-employed people with employees) can obtain voluntary coverage for themselveseffective January 1, 2018, or within 26 weeks (as opposed to initially proposed much shorter 30 days) of forming the above type of businesses or becoming a member of an LLC/LLP.They still must provide coverage for their employees.
- If they miss those dates, they can still obtain voluntary coverage for themselves and be endorsed onto the policy. They are, however,subject to a 2-year waiting period for PFL benefits, during which the regular community rate for PFL must be paid (as opposed the proposed additional option for a higher rate in exchange for immediate coverage).
- Any employees of a Sole Proprietor or LLC/LLP would not be subject to the 2-year waiting period if their employer is a late PFL entrant.
This provision has been added:
- Sole Proprietors and members of an LLC/LLP (or any other self-employed person) with employees must be covered under the same policy/rider as their employees.
- The ability to opt in for voluntary PFL coverage as a Sole Proprietors or member of an LLC/LLP (or any other self-employed person) without employees has been changed to line up with the underlying DBL practices, which require them to have at least 1 employee.
For additional information contact your local Stahlka Agency office at 716-634-7070 or visit the NYS Paid Family Leave Government website.
Any information in this publication is solely meant to provide general information for the reader and is not considered insurance, or legal advice. Stahlka Agency recommends appropriate consultation with your own legal advisors