New York has recently enacted significant updates to its parental leave legislation, particularly through the expansion of the New York Paid Family Leave (PFL) program. Here are the key changes:
- Paid prenatal leave
- Starting Jan. 1, 2025, New York will require clients to provide 20 hours of paid prenatal leave within a 52-week period. This leave is specifically for pregnant employees to attend prenatal medical appointments, including physical exams and other necessary healthcare services related to their pregnancy. This benefit is in addition to existing paid sick leave and family leave entitlements.
- Paid Family Leave benefits
- As of 2024, the PFL program continues to offer up to 12 weeks of job-protected leave for employees to bond with a new child (biological, adopted or fostered), care for a seriously ill family member or handle certain military-related exigencies. Employees will receive 67% of their average weekly earnings, capped at a maximum of $1,151.16 per week in 2024.
- Contribution rate changes
- The contribution rate for employees funding the PFL through payroll deductions will decrease to 0.373% of their gross earnings in 2024, down from 0.455% in 2023. The maximum annual contribution will also decrease to $333.45 from $399.43.
- Job protection and health insurance
- Employees taking PFL are entitled to return to the same or a comparable job upon their return and can maintain their health insurance benefits during their leave.
- Changes in covered payroll thresholds
- The maximum covered payroll threshold for calculating contributions will increase in 2024 to $89,343.80, based on the Statewide Average Weekly Wage (SAWW).
Suggestions for clients
- Clients need to update their policies and inform HR departments about these changes to ensure compliance with the new regulations.
- The introduction of paid prenatal leave marks New York as the first state in the U.S. to mandate such a benefit, reflecting a broader trend toward supporting pregnant workers.
These updates are designed to enhance support for employees during critical life events while ensuring that clients are aware of their responsibilities under the law.
For more information, visit New York State Paid Family Leave (ny.gov).