The New York Paid Family Leave law becomes effective January 1, 2018 and, when fully phased in, an employee will receive 67% of his/her average weekly wages, capped at 67% of the average statewide weekly wage. This program will be funded generally through employee payroll deductions.
The Superintendent of Financial Services has set the maximum employee contribution at 0.126% of an employee’s weekly wage, not to exceed 0.126% of the statewide average weekly wage (currently $1,305.92). Since the premium paid by an employee depends on how much an employee earns, those employees earning less will pay a lower premium, and those earning more will pay a higher premium as they are eligible for higher benefits. For employees who make more than the statewide average weekly wage of $1,305.92, the contribution will be capped at $1.65 per week for 2018. It is likely that the maximum contribution will increase in March of 2018 when the statewide average weekly wage is again calculated.
Employers may begin collecting employee contributions beginning on July 1, 2017.
We will continue to keep you apprised of future developments.