1. NY State Paid Family Leave Benefits Law
Presented by:
Joseph Tomaino, MS, RN, Grassi & Co. – Healthcare Principal
Geri Gregor, CPA, Grassi & Co. – Partner
Audrey Villani, PHR, SHRM-CP, Grassi & Co. – Human Resources Director & Consultant
Josephine Bottitta, J.D., MSW, OneGroup – Director, Business Development & Consulting
Casey Cone, PHR, SHRM-CP, OneGroup – Human Resources Consultant
Kathleen Russell, PHR, SHRM-CP, OneGroup – Human Resources & Employee Benefits Consultant

2. Disclaimer
OneGroup provides information, research, guidance, and best practices, but does not offer specific legal or tax advice. OneGroup services are not intended to be a substitute for legal or tax advice. Given the changing nature of federal, state and local legislation and the changing nature of court decisions, OneGroup cannot guarantee that this information will not change in the future.
This presentation provides an overview of the regulations of the New York State Paid Family Leave Benefits Law. Information in this presentation is subject to change as interpretive guidance is issued from the NYS WCB and DFS.

3. Agenda Timeline of Events Benefit Overview
Employee Rights and Obligations
Paid Family Leave Vs Family Medical Leave (FML) and NYS Disability (DBL)
Next Steps for Employers
Questions

4. NY Paid Family Leave – Timeline of Events
April 4, 2016 – Paid Family Leave (PFL) signed into law by Governor Cuomo
February 22, 2017 – NYS Workers’ Compensation Board released proposed Regulations
May 24, 2017 – Revised proposed Regulations released by WCB
May 31, 2017 – DFS published final Regulations
June 1, 2017 – DFS Superintendent released maximum employee contribution rate
July 1, 2017 – Payroll deductions permitted (not required) to commence
July 19, 2017 – Final Regulations released by WCB
August 1, 2017 – Last day for DBL carriers to decide whether to remain in the market
September 30, 2017 – Last day to elect to self-insure
November 30, 2017 – Last day to notify employees & WCB of voluntary coverage choice
January 1, 2018 – PFL takes effect

5. NY Paid Family Leave – Benefit Overview
Paid Family Leave amends New York’s Workers’ Compensation Law, and in particular the Disability Benefits Law.
PFL covers private sector employers with one or more employees who are subject to the NY Disability Benefits Law (DBL)
Public employers are not required to offer PFL, but may opt in
Employers that self-insure DBL shall have the option to elect to be self- insured for family leave benefits or obtain alternative coverage; election to self-insure must occur no later than September 30, 2017
Unionized employers with leave provisions in collective bargaining agreements that are at least as favorable as the PFL leave benefits do not have to offer PFL
An employer must use the same carrier for Paid Family Leave and Disability policies; PFL will be a rider on the statutory disability policy

6. NY Paid Family Leave – Benefit Overview
Effective January 1, 2018, the New York State Paid Family Leave Program will provide employees in New York job-protected, paid leave to:
Bond with the employee’s newborn or newly placed adoptive or foster child, during the first 12 months following birth, adoption or fostering;
Care for a close family member with a serious health condition (including spouse, domestic partner, child, parent, parent-in-law, grandparent, or grandchild); or
Assist with family obligations due to the deployment or impending call or order to active military service of a relative (spouse, domestic partner, child or parent).

7. NY Paid Family Leave – Benefit Overview
Date
Maximum Weeks of Paid Leave Available2
Maximum % of Employee’s Average Weekly Wage (AWW)
Up to the Max % of NY State’s Average Weekly Wage (NYSAWW)3
Maximum Weekly $ Amount Based on Current NYSAWW of $1,
1/1/2018 8
50%
$652.96
1/1/2019 10
55%
$718.26
1/1/2020
60%
$783.55
1/1/2021 12
67%
$874.97
1The Superintendent of Financial Services will have discretion to delay the increases in the benefit level if such increases will have a negative impact on the State’s economy
2The maximum leave may be taken in any given 52-consecutive week period, starting on the 1st day the employee takes leave
3The NYSAWW is currently $1, and will be updated annually on March 31st by the NYS DOL; $1, per week equates to $67,908 on an annual basis

8. NY Paid Family Leave – Benefit Overview
Funding
The benefit will be entirely employee-funded through a payroll deduction of 0.126% of each employee’s weekly wages, capped at % of the NYSAWW ($1.65/week) in 2018
The premium rate for community rated PFL benefits coverage (maximum employee contribution rate) will be established each year on September 1st by the Department of Financial Services Superintendent
Employers have the option to cover the cost and pay the PFL premium directly from Company funds, instead of collecting employee contributions
Since employers may have to pay PFL premiums annually in advance, they will be allowed, but not required, to collect the PFL premium from payroll beginning July 1, 2017, to reduce some of the cash-flow impact

9. NY Paid Family Leave – Benefit Overview
Employee Eligibility
To be eligible for Paid Family Leave, employees who work 20 or more hours per week must be employed for 26 consecutive weeks; employees who work less than 20 hours per week are eligible after 175 days worked in a consecutive 52-week period.
The employer must provide employees who are anticipated to work less than 26 weeks or 175 days in a consecutive 52-week period with the option to file a waiver of benefits, exempting them from the obligation to make contributions, and exempting the employer from providing paid family leave benefits
Any waiver shall be revoked within 8 weeks of a change in the regular work schedule that requires the employee to continue working for 26 weeks or days in a consecutive 52-week period, and the employee will be obligated to begin making contributions, including any retroactive amounts due from the date of hire
Paid Family Leave is not available for an employee’s own serious health condition.

10. NY Paid Family Leave – Benefit Overview
Leave for Birth, Adoption, or Foster Care
Leave for birth available during the first 52 weeks after the date of the birth of a child
Leave for foster care or adoption available during the first 52 weeks from the date of the placement or first day leave taken
An employee can take leave before the actual placement or adoption if the absence is required for the placement or adoption to proceed (i.e. travel to another country to complete an adoption, appear in court, etc.)
An eligible employee may elect to receive Disability and Family Leave Benefits after the birth of a child, but may not receive the benefits at the same time; combined DBL and PFL leave may not exceed 26 weeks in any consecutive 52-week period
Applies to children born or placed in 2017

11. NY Paid Family Leave – Benefit Overview
Leave to Provide Care to Family Member with Serious Health Condition
Providing care includes necessary physical care, emotional support, visitation, assistance in treatment, transportation, arranging for a change in care, assistance with essential daily living matters, and personal attendant services
Employee must be in close and continuing proximity to the care recipient
Family member is defined as spouse, domestic partner, child, parent, parent-in-law, grandparent, grandchild

12. NY Paid Family Leave – Benefit Overview
Serious Health Condition
Illness, injury, impairment, or physical or mental condition that involves inpatient care in a hospital, hospice, or residential health care facility; or continuing treatment or continuing supervision by a health care provider
Treatment does not include routine examinations
Typically, unless complications arise, the common cold, flu, ear aches, upset stomach, headaches other than migraines, routine dental or orthodontia problems, etc., are examples of conditions that do not meet the definition of a serious health condition and do not qualify for PFL

13. NY Paid Family Leave – Benefit Overview
Leave for Qualifying Military Exigency Leave
Leave to assist with family obligations resulting from a family member’s impending call to active duty or current active duty in the Armed Forces of the United States
Family member is defined as spouse, domestic partner, child, or parent
Follows FML guidelines

14. NY Paid Family Leave – Employee Rights and Obligations
Employees will be responsible for notifying their employer of their intent to use Family Leave benefits, and for filing a request for Paid Family Leave, including supporting documentation
Employees will file a claim directly with the insurance carrier
Employees who take Paid Family Leave may not be discriminated or retaliated against by their employer
Employees must be restored to the same position or a comparable position upon return from leave, and must be allowed to continue their health insurance while on leave

15. NY Paid Family Leave – Employee Rights and Obligations
Employees who contribute to the cost of their health insurance must continue to pay their portion of the premium cost while on Paid Family Leave
Employees cannot be required to use accrued paid time off benefits (vacation, sick, PTO, etc.) while on Paid Family Leave
Employees can elect to use accrued time

16. Similarities between PFL and FML
Employee required to provide 30-days notice
Employee does not specifically have to state the type of leave requested
Employee required to provide certification
No elimination period
Job protected leave
Group health coverage continuation
No accrual of seniority while on leave
No accrual of benefits while on leave
Definition of serious health condition

17. Differences between PFL and FML
Paid Family Leave
Family Medical Leave
State program
Paid
Cannot be used for employee’s health condition
Private employers – 1 employee
Public employers may opt-in
Employed 26 weeks (or worked days for part-time employees)
Rolling 12 months
Federal program
Unpaid
Can be used for employee’s health condition
Private employers – 50 employees
Public employers any size
Employed 12 months and 1,250 hours worked
Rolling or calendar 12 months

18. Differences between PFL and FML
Paid Family Leave
Family Medical Leave
Leave in full-day increments
Employee can choose to use PTO
No age limit for definition of child
Family member includes grandparent, grandchild, domestic partner, parent-in-law
Up to 12 weeks of leave (after fully phased-in)
Intermittent leave allowable (no limitations)
Leave in quarter-hour increments
Employer can mandate PTO use
Child defined as under age 18
Family member does not include grandparent, grandchild, domestic partner, parent-in-law
Up to 12 weeks of leave (26 military caregiver leave)
Intermittent leave allowable (only if medically necessary)

19. Similarities between PFL and NY Disability Benefits Law
State programs
Paid
Private employers with 1 employee
No accrual of seniority while on leave
No accrual of benefits while on leave
Employee required to provide certification of the need for leave

20. Differences between PFL and NY Disability Benefits Law
Paid Family Leave
NY Disability
Employee funded
In 2018, employee payroll deduction of 0.126% of employee’s weekly wages, capped at $1.65/week
Cannot be used for employee’s illness or injury
After fully phased-in, benefit up to 67% of employee’s Average Weekly Wage, capped at 67% of NY State’s Average Weekly Wage
Primarily employer funded
Employee payroll deduction of % of employee’s weekly wages, capped at $0.60/week
Used only for employee’s non- occupational illness or injury
Benefit up to 50% of employee’s Average Weekly Wage, capped at $170/week

21. Differences between PFL and NY Disability Benefits Law
Paid Family Leave
NY Disability
No elimination period
Employed 26 consecutive weeks (part-time 175 days worked) for current employer
Up to 12 weeks of leave after fully phased-in
Income replacement and job-protected leave
One week elimination period
Employed 4 consecutive weeks (part-time 25 days worked) for any covered employer
Up to 26 weeks of benefit payments
Income replacement only

22. NY Paid Family Leave – Next Steps for Employers
Consider impact on existing practices, policies and postings:
Consider changes to existing leave practices and policies (i.e. FML; calendar year versus rolling 52-consecutive weeks, with 60-day notice to employees)
A PFL policy will need to be created encompassing guidance on how PFL benefits will be administered to employees, including employee rights and obligations and instructions on how to file a claim
Consider staffing options such as cross-training employees or bringing on temporary individuals
Evaluate whether outsourcing absence management is a viable solution

23. NY Paid Family Leave – Next Steps for Employers
Absence Management Solutions
Consult with your DBL carrier or consultant regarding absence management services to:
Remove the administrative burden of tracking and managing absences and intermittent leaves
Stay compliant with complex state and federal leave laws
Coordinate across various leave types and concurrent use (i.e. federal FML, state leave laws, military leaves, employer-specific leaves)
Minimize business risk and potential liability
Carrier parameters vary, but they may have options available for lives at a fixed rate, such as:
$0.15 PEPM for PFL tracking
$1.60-$2.31 PEPM for FML tracking

24. NY Paid Family Leave – Next Steps for Employers
Consult with your DBL carrier or consultant regarding your policy and potential absence management services
Consult with your payroll vendor to set up a new payroll deduction code
Consult with your internal accounting department to review process changes
Communicate the payroll deduction to employees, prior to implementation
Develop internal policy changes and communicate to employees
Post a PFL notice (once released) in plain view of employees and applicants

25. Questions?

26. For More Information… Audrey Villani, PHR, SHRM-CP
Human Resources Director & Consultant
Grassi & Co.
Direct Dial: (516)