Need-to-Know PFL Info for Brokers
Paid Family Leave is very much intertwined with DBL – as well as The Family Medical Leave Act (FMLA) for groups of 50+ employees. Since PFL is closer to the health side of the insurance spectrum, it may come more naturally to benefit brokers who are usually familiar with similar programs, like FMLA. However, since PFL becomes part of the mandatory DBL policy, which can be written by any NY insurance licensee, P&C brokers will have to navigate this uncharted territory. Whichever side of the spectrum you’re on, we have 2 in-depth comparisons for both: PFL-DBL and PFL-FMLA allowing you to study up on some of the nitty-gritty details we can’t fit on this page.
One thing that doesn’t need much studying is the Paid Family Leave rate:
There is no fixed rate as the PFL cost is based on an employee’s salary. The 2018* maximum weekly contribution for Paid Family Leave is 0.126% of an employee’s weekly wage capped at current NYSAWW of $1,305.92 = 67,907.84 per year**.
This translates into a 2018 maximum contribution of $1.65/week (averaged over the year) for employees earning NYSAWW or above.
Since PFL is a rider to DBL, the premium will be billed together – and will need to be paid together. Your clients must pay the premium for their entire group whether they withhold from employees or not. Employers that take contributions from employees,
can start payroll deductions as early as July 1, 2017 (this may reduce cash-flow constraints especially for those of your clients billed annually in advance)
but they cannot take deductions retro-actively or collect more than the allowable maximum contribution for Paid Family Leave.
While employers can choose to collect DBL and PFL employee contributions from an employee who is out on DBL or PFL, they cannot collect Paid Family Leave contributions for an employee who is not yet eligible for PFL while that employee is out on DBL.
*The rate is set by NY State and can be adjusted on an annual basis effective January 1. The 2018 rate had to be set by June 1, 2017. Thereafter, updated rates are set and announced by NY State by September 1 of each year for the following calendar year.
**NY Department of Labor releases the updated NYSAWW every March 31.