New York Paid Family Leave and Its Impact on Small Businesses
On January 1, 2021, New York’s paid family leave policy is changing. What does this mean for your business? Read on to find out.
New York Paid Family Leave (NY PFL) allows eligible workers to take partially paid leave for certain caretaking responsibilities. Whether your employee is making room for a new child, or needs some time to care for a loved one — in 2021, eligible employees can take up to 12 weeks of job-protected Paid Family Leave and receive 67% of their average weekly wage, up to a maximum weekly benefit amount of $971.61. Eligible workers can also continue their health insurance coverage while on Paid Family Leave, and are guaranteed the same or comparable job after their leave ends.
As an employer, it’s important to note that you are not bankrolling the NY PFL benefit. Instead, the program is fully funded by employee payroll deductions.
Use of New York Paid Family Leave Benefits
Eligible employees can take Paid Family Leave to:
Bond with a newly born, adopted, or fostered child
Care for a family member with a serious health condition
Assist loved ones when a family member is deployed abroad for active military service
In addition, Paid Family Leave may also be available in situations where the employee, or their minor dependent child, is under an order of quarantine or isolation due to COVID-19.
Timing of New York Paid Family Leave Benefits
The moment your employee takes leave is the moment NY PFL benefits begin, with the exception of employees who are giving birth.
Birthing parents may be eligible to take both short-term disability and NY PFL, but not at the same time. Typically, NY PFL will come into play after New York State Disability (DBL) and Voluntary Short-Term Disability (STD) are claimed. These disability programs can run at the same time and begin on the first day the parent is out of office. After the disability benefits conclude, NY PFL benefits can start anytime within 52 weeks of childbirth.
For new parents that are not eligible for disability, NY PFL benefits begin on the first day the parent is out of office.
Discover best practices, benchmarks, and laws to consider when creating your parental leave policy in this video by Justworks.
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