New York State Paid Family Leave Update 2023

New York State Paid Family Leave Update

New York State will see updates to its paid family leave (PFL) program in 2023.

The changes include an expanded definition of covered family member, an increase to maximum weekly benefits and a decrease in the employee contribution rate.

The updates to New York go into effect Jan. 1, 2023.

Paid Leave Management. Simplified.

New York State Paid Family Leave

As a reminder, New York’s paid family leave program provides eligible employees with up to 12 weeks of job-protected paid time off to:

• Bond with a new child
• Care for a family member with a serious health condition
• Assist loved ones when a family member is deployed abroad on active military service

Paid leave can also be available in certain situations when an employee or their minor, dependent child is under an order of quarantine or isolation due to COVID-19.

The paid leave time can be taken all at once or in increments of full days.

Under the first change for 2023, a covered family member will add siblings, which includes biological or adopted siblings, half-siblings and step-siblings. Other covered family members include:

• Child
• Parent
• Spouse
• Domestic partner
• Grandparent
• Grandchild
• Parents-in-law

Next, employees using paid family leave in New York will receive 67 percent of their average weekly wage, up to a cap of 67 percent of the New York State average weekly wage.

For 2023, the New York State average weekly wage is $1,688.19, which means the maximum weekly benefit is $1,131.08. (That figure is $62.72 more than the maximum weekly benefit for 2022.)

The weekly paid family benefit for employees in New York is capped at $1,131.08.

State officials provided examples for employers:

Meanwhile, the final change for New York paid family leave for 2023 involves payroll deductions, which fund the program.

The contribution rate for 2023 will be reduced — for 2023, employees will contribute 0.455 percent of their gross wages per pay period. The maximum annual contribution for 2023 is $399.43. (It is $24.28 less than 2022.)

Employees who earn less than the current New York average weekly wage of $1,688.19 will contribute less than the annual cap of $399.43, consistent with their actual wages.

More examples from New York:

• Employees earning $519 a week (about $27,000 a year) will pay about $2.36 of their gross wages each week: $519 x 0.455%. When taking the benefit, these employees will receive $347.73 per week, up to a maximum total benefit of $4,172.76

• Employees earning $1,000 a week ($52,000 a year) will pay $4.55  of their gross wages each week: $1,000 x 0.455%. When taking the benefit, these employees will receive $670 per week, up to a maximum total benefit of $8,040

• Employees earning the NYSAWW of $1,688.19 (about $87,000 a year) or more will pay 0.455% x their gross wages each pay period until they reach the maximum of $399.43. When taking the benefit, these employees will receive $1,131.08 per week, up to a maximum total benefit of $13,572.96

Again, as a reminder, eligible employees must meet time-worked requirements:

• Full-time (regularly work 20 or more hours/week), after 26 consecutive weeks of employment
• Part-time (regularly work fewer than 20 hours/week), after 175 working days

Paid Leave Laws in the U.S.

The continued growth of paid leave across the U.S. creates challenges for large employers. Thus far in 2022,

Paid leave continues to be a major challenge for large employers. Since the start of 2022, several jurisdictions have passed new paid leave laws, including:

• Bloomington, Minn. – paid sick leave ordinance
• San Francisco – public health emergency leave ordinance
• Delaware – paid family and medical leave
• Maryland – paid family and medical leave
• California – COVID-19 supplemental paid sick leave
• Washington, D.C. – COVID-19 vaccination leave law

In addition to new legislation, paid leave laws also continue to update, as is the case in New York State and its paid family leave program. Employers must constantly monitor the jurisdictions where they have locations — especially in employee-friendly places like California — to maintain compliance.

Conclusion

The New York State paid family leave update for 2023 highlights the complexities of managing paid leave for multi-jurisdiction employers.

Those that operate in New York State should review their policies and procedures to ensure compliance with the changes coming up next year.