This is a reminder that although New York employers don’t have to provide Paid Family Leave benefits to their employees until January 1, 2018, they may now begin to make deductions from employees’ wages to offset the cost of family leave insurance starting with their first payroll on or after July 1, 2017.
Under the law, paid leave benefits are financed by employee payroll deductions. Employers are not required to directly fund the family leave benefit. State regulations permit the employer to deduct .126% of an employees’ wages, up to the statewide average weekly wage of $1,305.92. Employers can use those deductions to purchase family leave insurance or to self-insure. Check out the “Frequently Asked Questions” document to help you navigate the new law and your obligations.