New paid family leave laws: 3 ways Finance can get prepared

As paid sick leave laws continue to crop up nationwide, now employers have something else to watch out for on the state and local level: paid family leave.  

Take New York state, for example. The state is phasing in a paid family leave program.

While California, New Jersey and Rhode Island already have such plans, New York’s paid family leave plan is more generous, lasting 12 weeks.

Funding for the program will come through paycheck deductions, so that will be an added Payroll duty.

What to do: Finance execs nationwide can ensure compliance as state and local leave laws continue to emerge by finding out the answers to key questions like these:

• How long does an employee need to work for your company before becoming eligible for leave?
• Can an employee be required to use accrued vacation time first?
• In what increments can an employee take leave?

More details

Under the New York law, starting in 2018 employees will be eligible for leave at 50% of their average weekly wage, increasing to 67% in 2021.

Meanwhile, in California a new law has changed the amount of paid leave employees will receive. Currently, it’s 55% of base wages.

The amount will go up to 60% for someone who earns less than one-third of statewide average wages and 70% for someone who earns one-third or more.

Those increases will take effect Jan. 1, 2018.

On the local level in California, San Francisco has passed a law that’s a “first” – six weeks of fully paid leave to care for a new child.

The San Francisco law requires employers to chip in, making up for what employees don’t receive from the state’s family leave program.

The changes will be phased in starting with larger employers on Jan. 1, 2017.

For more information:

• tinyurl.com/newyork508
• tinyurl.com/california508
• tinyurl.com/sanfrancisco508