Wednesday, April 13, 2016

Paid Family Leave Enacted in New York - San Francisco Next?

PNN: NY SF Family Leave

On April 4, New York Governor Andrew Cuomo signed legislation that created a paid family leave program, effective January 1, 2018 [A.B. 9006C, L. 2016]. When fully implemented by 2021, employers will be required to provide employees with 12 weeks of paid family leave. Legislation for this was previously considered under a different bill number.

Other States With Paid Family Leave Include:

  • California has a paid family leave program.
  • New Jersey has a family leave insurance program.
  • Rhode Island has a temporary caregiver insurance program.
  • New York also has a state disability insurance (SDI) program.

Amount of Leave, Benefits Will Increase to the Following:

  • Effective January 1, 2018, employers will be required to provide New York employees with up to eight weeks of leave a year.
  • Effective January 1, 2018, an employee will be eligible to receive up to 50% of his or her average weekly wage, but not more than 50% of the statewide average weekly wage.
  • The amount of leave and the benefits will gradually increase through 2021.

Plan Funded Through Employee Payroll Deductions
Beginning June 1, 2017, and annually thereafter, the Superintendent of Financial Services will set the maximum employee contribution for the following year. The contribution will be made through payroll deductions. No employer contributions will be required.

San Francisco Considers Paid Family Leave
On April 5, the San Francisco Board of Supervisors passed an ordinance that would, if enacted, complement the existing California state plan. Beginning in 2017, the San Francisco ordinance would require employers in the city with 50 or more employees to provide the rest of the employees’ wages - the remaining 45% (state plan provides 55%) - for the six-week leave. The law would be phased in and would eventually apply to employers with 20 or more employees (File No. 160065).

Read PayState Update for more information about New York paid family leave, and look for future updates on the San Francisco ordinance.