By Barbra Merwin
Employers across New York are asking their agents questions about what the Paid Family Leave (PFL) benefit means to them. Providing financial and job security for eligible employees in the State of New York, the policy eases big family transitions like welcoming a new baby into the home and caring for an ill or injured family member.
Help your clients get prepared by providing these helpful tips so they can be prepared for the policy launch on January 1, 2018.
NY Paid Family Leave: What Employers Need to Know
Communication: Be Clear and Post Signage
- Supply the Workers’ Comp Board prescribed PFL notice to hand out with benefit coverage and claim filing details (Not released yet)
- Add PFL to your Employee Handbook and update all internal leave materials to include PFL
- Conspicuously post a Workers’ Comp Board prescribed notice which explains PFL benefits (Not released yet)
- Remind employees that must give 30 days prior notice to taking PFL if the event is foreseeable such as maternity leave.
- If your employee is out on FMLA, you must provide them with notice of their eligibility for PFL.
Premium: Collect and Pay Carrier
- You’ll collect your employee’s contribution through their payroll similar to your other employee paid benefits. If you don’t have this set up yet be sure to discuss with your payroll provider and HR resources. You may begin PFL employee contribution collection as soon as July, 2017.
- The employee rate will be ‘community-rated’ meaning the PFL premium for all employees is the same, regardless of age, sex, or location. The rates will be released in June, 2017.
- The PFL coverage will be billed along-side your Statutory Disability. The invoice will clearly define the rate and will coincide with the number of your eligible employees.
Guarantees and Fines: Stay in Cmpliance
- You must guarantee job reinstatement to an employee on leave to the same or comparable position.
- You must maintain the health insurance for any employee on leave.
- Non-compliance: the Workers’ Comp Board may access penalties for non-compliance up to ½ of 1% of the employers’ weekly payroll for period of non-compliance plus payment of any PFL claims and an additional sum of up to $500.
Take Care of Employees and Your Business
Understanding the New York PFL law benefits agents and business owners by helping to facilitate a smooth compliance transition. That’s where partnering with a leader in New York disability benefits can really pay off.
AmTrust North America offers a strong and reliable support system that can help you (and your clients) understand and comply with the new policy. Ready to get started?
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Barbra Merwin is SVP at AmTrust North America, a multi-national property and casualty insurer specializing in coverage for small businesses.
Editor’s Note: This blog was originally published in March 2017 and has been updated and edited.