NYS Paid Family Leave Update-2020 Contribution Rate

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HORMEL

There are a few things we’ve all become accustomed to at this time of year: kids returning to school, cooler temperatures at nights, pumpkin spice in everything imaginable (I detest everything pumpkin spice, so I would never joke about it, Hormel is really selling Pumpkin Spice SPAM), and NY State publishing the updated employee contribution rate for paid family leave.

On August 30, 2019, the NY State Department of Financial Services published its updated Paid Family Leave (“PFL”) benefits premium rate for 2020.

Beginning January 1, 2020:

Employee contribution rate                             0.27%   (up from 0.153% in 2019)

Maximum annual employee contribution      $ 196.72   (up from $107.97 in 2019)

Maximum length of leave                               10 weeks   (no change from 2019)

Benefit rate (as a % of AWW*)                        60%   (up from 55% in 2019)

Maximum weekly benefit amount*                $ 840.70   (up from $746.41 in 2019)

Maximum total benefit*                                  $ 8,407.00   (up from $7,464.10 in 2019)

The updated rate is said to reflect current PFL utilization, as well the benefit increase effective January 1, 2020. To put things in perspective, the employee contribution rate for 2020 increased 77% from the 2019 rate, and 215% from the 2018 rate!**

* The NYS Average Weekly Wage (NYSAWW) is $1,401.17. The maximum weekly benefit is set at 60% of the NYSAWW ($1,401.17 x 0.60 = $840.70). The maximum total benefit is equal to the maximum weekly benefit multiplied by the maximum length of leave ($840.70 x 10 weeks = $8,407.00). An employee’s weekly benefit is equal to the lesser of the maximum weekly benefit amount, or 60% of the employee’s AWW.
** 2018 maximum employee contribution rate 0.126%

Posted by Frank Cania, president of HR Compliance Experts LLC.

Please feel free to contact Frank at frank@hrcexperts.com, or 585-380-1566 with questions or for more information.


Disclaimer: This content is for informational purposes only, does not constitute a legal opinion, and is not legal advice. The facts of each situation should be considered and analyzed individually. Therefore, you should always consult with competent employment counsel regarding any issues discussed here.

CLICK HERE to learn more about Frank Cania and HR Compliance Experts LLC.

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