On Wednesday, August 30, 2023, the New York Department of Financial Services (DFS) announced that in 2024, the maximum contribution rate for Paid Family Leave will go down from 0.455% to 0.373% of an employee’s gross annualized wages, capped at $89,343.80*, which is the updated annualized New York State Average Weekly Wage (learn more about the NYSAWW here). This translates to a maximum annual premium contribution of $333.25 per employee that an employer can withhold – down from $399.43 this year.
The New York Department of Labor released its New York State Average Weekly Wage (NYSAWW),used to calculate 2024 NY Paid Family Leave benefits. As of April 1, 2023, the NYSAWW increased to $1,718.15*. (Shelter Point)
Paid Family Leave by State & City
2023 Paid Family Leave Expansion
Through Legislation S.2928-A/A.06098-A, the definition of “family members” expands to include siblings. This includes biological siblings, adopted siblings, step-siblings and half-siblings. These family members can live outside of New York State, and even outside of the country.
The bill will go into effect on January 1, 2023.
PFL At-A-Glance for 2023 [PDF]
Model Language for Employee Materials – Updated for 2023 (template)
Employee Notice of Paid Family Leave Payroll Deduction for 2023 (template)
Statement of Rights for Paid Family Leave (PFL-271S)
Here are some contribution and benefit examples at different income levels:
- Employees earning $519 a week (about $27,000 a year) will pay about $2.65 per week: $519 x 0.511%. When taking the benefit, these employees will receive $347.73 per week, up to a maximum total benefit of $4,172.76.
- Employees earning $1,000 a week ($52,000 a year) will pay $5.11 per week: $1,000 x 0.511 %. When taking the benefit, these employees will receive $670 per week, up to a maximum total benefit of $8,040.
- Employees earning the SAWW of $1,594.57 (about $83,000 a year) or more will pay 0.511% x their gross wages each pay period until they reach the maximum of $423.71. When taking the benefit, these employees will receive $1,068.36 per week, up to a maximum total benefit of $12,820.32
Draft PFL Policy Language:
NEW YORK STATE PAID FAMILY LEAVE
New York Paid Family Leave provides job-protected, paid time off so employees can:
- bond with a newly born, adopted, or fostered child.
- care for a close relative with a serious health condition; or
- Assist loved ones when a family member is deployed abroad on active military service.
By NYS PFL Definition:
- spouse
- domestic partner (including same and different gender couples; legal registration not required)
- child/stepchild and anyone for whom you have legal custody
- parent/stepparent
- parent-in-law
- grandparent
- grandchild
- sibling (starting in 2023) Workers should check with their employer’s Paid Family Leave insurer to learn when sibling care goes into effect for their policy. For employees who work for self-insured employers, coverage begins January 1, 2023.
Employees who believe they are eligible for Paid Family Leave should contact their _______ as soon as possible. More information can be found at www.ny.gov/programs/new-york-state-paid-family-leave. Organization will abide by all changes to NYSPFL and communicate such changes to the employees. For additional information please alert your President, or the Statement of Rights Posting on Paid Family Leave.
Legal Area’s and Changes to Remember and Communicate:
- Employees have job protection, similar to FMLA.
- Paid Sick Leave policies and procedures.
- Right to keep their health insurance while on leave.
- No retaliation or discrimination against those who take leave.
- Citizenship is never a factor in eligibility for NYSPFL.
- Review the language contained in your employee handbook, policy, or policy manual. Update FMLA and NYSPFL language to reflect changes and communicate the policy to the workforce.
- Communicate PFL payroll deductions for 2020 to the workforce now or during open enrolment. My recommendation is to do this in writing via a template and obtain a signature. NYS has a PDF template referenced above.
- Ensure the NYS PFL statement of rights for Paid Family Leave in 2023 is up-to-date and communicated to the workforce. This includes the postings; disability provider or state is providing these postings to employers. Watch the expiration dates on the postings, this is a common area in an audit that needs to be corrected.
- A proper call-in procedure for intermittent leave is necessary. Do you accept text messages? What about emails? This should all be clearly communicated in a policy or procedure. How much notice?
- New York State Paid Sick Leave
I am happy to work with any employer’s on ensuring policy, communication mechanisms, postings and other NYSPFL material is legal and up to date. Ensure you are reviewing this information annually and communicating changes to PFL rates annually. Work with your payroll provider to ensure and verify the percentage deductions are accurate and live in the payroll system. Remember interns and seasonal employees and communicate if they do or do not qualify for PFL. There are forms to fill out online if they do not qualify to ensure the deduction is not taken.
Frequently Asked Questions
How many weeks of Paid Family Leave are available to employees?
Eligible employees can take up to 12 weeks of Paid Family Leave.
How much will employees get paid when taking Paid Family Leave?
Employees taking Paid Family Leave in 2023 will get 67% of their average weekly wage, up to a cap of 67% of the current NYSAWW of $1,688.19.
What is the maximum weekly benefit?
The maximum weekly benefit for 2023 is $1,131.08.
If I start my continuous leave in one year and it extends into the next, am I eligible for the benefits at the 2023 rate?
You get the benefit rate in effect on the first day of your leave.
If I start my intermittent leave in 2022, and it extends into 2023, am I eligible for the benefits at the 2023 rate?
You get the benefit rate in effect on the first day of a period of leave. When more than three months pass between days of Paid Family Leave, your next day or period of Paid Family Leave is considered a new claim under the law. This means you will need to file a new request for Paid Family Leave and that you may be eligible for the increased benefits available should that day or period of Paid Family Leave begin in 2023.
I am having a new baby in 2022; can I wait until 2023 to take Paid Family Leave?
Yes, you can take (and must complete) Paid Family Leave for bonding with a new child at any time within the first 12 months of the child’s birth, adoption, or foster care placement, provided that you remain an eligible, covered employee.
I used all 12 weeks of Paid Family Leave in the last year; can I take more Paid Family Leave this year if I experience another qualifying event?
You may take up to 12 weeks of Paid Family Leave in every 52-week period. This means that if you used the full 12 weeks of leave, the next time you would be eligible to take Paid Family Leave again is one year from your first day of leave.
What is the weekly employee contribution rate?
If you are paid weekly, the payroll contribution is 0.455% of your gross weekly wages and is capped at an annual maximum of $399.43. If your gross weekly wages are less than the NYSAWW ($1,688.19 per week), you will have an annual contribution amount less than the annual cap of $399.43, consistent with your actual wages.
For example, if you earn about $27,000 a year ($519 a week), you will pay about $2.36 per week.
If you are not paid weekly, the payroll contribution will be 0.455% of your gross wages for the pay period.
What is the maximum amount employees will pay for Paid Family Leave?
The maximum employee contribution for 2023 is $399.43.
On March 31, 2022, New York updated the NYSAWW. When does this NYSAWW take effect for Paid Family Leave deduction and benefit caps?
The new NYSAWW only applies to the 2023 benefit and will not affect Paid Family Leave deductions or benefits until January 1, 2023, if leave was begun on or after that date. The new NYSAWW does not have any impact on Paid Family Leave benefits in 2022.
What is the NYSAWW that will be used for Paid Family Leave benefits in 2023?
$1,688.19
Workers Comp Rates
The maximum weekly benefit rate for workers’ compensation claimants is two-thirds of the New York State average weekly wage for the previous calendar year, as determined by the New York State Department of Labor (Workers’ Compensation Law §§ 2[16] and 15[6]).
The Department of Labor reported to the Superintendent of the Department of Financial Services that the New York State average weekly wage for 2022 was $1,718.15. Accordingly, the maximum weekly benefit rate will be $1,145.43 for compensable lost time for workers’ compensation claims with dates of injury during the period from July 1, 2023, through June 30, 2024.
Schedule of Benefits
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