On June 1, 2017 the Superintendent of DFS and the Chair of the Workers’ Compensation Board determined that New York’s Paid Family Leave program will be community rated. This ensures that all employees are similarly treated and are not subject to cost variations based on age, gender, location, or any other demographic factor.
There will be no fixed rate. The weekly contribution rate for paid family leave will be 0.126% of the employee’s weekly wage, capped at New York State’s current average weekly wage of $1,305.92*. This translates into a maximum contribution of $1.65 per week per employee in 2018. For example, if an employee’s weekly wage is $1,000, the maximum deduction for that week would be $1.26.
Now that the carriers have what they need to determine applicable next steps we can expect final plan offering details sometime soon. Austin & Co. will continue to monitor the progress of this new requirement and update you as relevant information is released.
*NY DOL releases an updated statewide average weekly wage (SAWW) every July 1.