NY Paid Family Leave: While We Wait for the Rate...

*Update on June 1, 2017 the Department of Financial Services (DFS) published the PFL rate.  Read details here.*

"Some things in life are worth wating for."

• The grill to be hot enough
• Cookies to finish baking
• Your favorite show’s season premiere
• That cold beer on a hot July afternoon
• Getting to meet your band after the concert
• PFL rates to finally come out
• PFL commissions to be set

If you were the kid that kept peeking in the oven to see if the cookies were finally done, we’re with you: We know that’s what waiting for the New York Paid Family Leave rates to come out feels like. Thankfully, you don’t have to wait in front of the oven. That’s what we’re doing – and we’ll let you know when they’re ready!

In the meantime, here’s what’s baking:

These rate parameters are already set:

1. Initial rates have to be released by the State no later than June 1 this year.
2. Thereafter, they will be set by September 1 each year by the State.
3. Paid Family Leave will be community rated as either a defined dollar amount per week per employee or a percentage of employee’s wages up to a cap.

The actual rate “classification methodology,” however, is yet to be determined. The State laid out 3 possible approaches in the draft regulations:

1. A 3-tiered approach based on an employee’s average weekly wages (AWW) of
   1. up to 1/3 of the State’s AWW
   2. 1/3 - 2/3 of the State’s AWW
   3. more than 2/3 of the State’s AWW
       
2. A 2-tiered approach based on an employee’s average weekly wages (AWW) within
   1. the bottom half of the State’s AWW
   2. the top half of the State’s AWW
       
3. Any other methodology, including (but not limited to) a single-tier approach.

Look for upcoming posts to find out how an employee’s AWW is calculated for PFL purposes.

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*Update on June 1, 2017 the Department of Financial Services (DFS) published the PFL rate.  Read details here.

This blog post is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any PFL information is as of the blog post’s date stamp; it is based on the applicable statutes and regulation,  and may change as regulations evolve or NY State issues guidance regarding Paid Family Leave regulations. Have more questions? Email us at pflquestions@shelterpoint.com