New York Paid Family Leave Law Impacts Families That Employ Nannies

Earlier this month, Governor Cuomo announced the New York Paid Family Leave law, which is the nation’s longest and most comprehensive. This law impacts all private employers and employees in New York, regardless of size – including household employers and nannies.

How much does it cost employers and employees?

The family leave program will be funded by a payroll deduction of between 45₵ and $1 per week from each employee’s paycheck. It will become part of the deduction for New York State’s Temporary Disability Insurance, and it will not require a contribution from employers.

When will it take effect and how much are the benefits?

The paid family leave will be phased-in over a number of years. Beginning in 2018, paid leave benefits will be set at 50 percent of an employee’s average weekly wage and capped at 50 percent of the statewide average weekly wage. When fully implemented in 2021, the benefits will be set at 67 percent of an employee’s average weekly wage and capped at 67 percent of the statewide average weekly wage.

When the plan is fully phased-in, employees who have worked for an employer for six consecutive months will be eligible for up to 12 weeks of paid family leave. Part-time employees become eligible on the 175th day of employment. Leading up to the full phase-in, employees will be eligible for 8 weeks in 2018, 10 weeks in 2019 and 2020, and 12 weeks starting in 2021. The leave is protected, meaning employees must be returned to their same job or a comparable position, with the same benefits, pay, and other terms and conditions of employment.

What can it be used for?

Employees may use this time to care for and bond with newborns or newly adopted children or foster children, to take care of themselves or a family member with a serious health condition, or to address certain legal, financial, and childcare issues that arise when a spouse is called to active military service.

Please note: this is not the same as the Family Medical Leave Act (FMLA). The FMLA is unpaid leave and only applies to employers with at least 50 employees.

For more information, or to learn more about how GTM keeps household employers compliant with labor laws, contact us at (800) 929-9213.