In 2016, the New York State Department of Labor adopted a schedule of increases to both the minimum wage rate and the minimum salary level for exempt executive and administrative employees.
For more than two years now, we’ve spoken and presented to various groups on New York’s Paid Family Leave Benefits Law (PFL), dozens, and dozens, and dozens of times. Like clockwork, one of the curious attendees would always ask whether PFL benefit payments would be taxable and whether PFL employee contributions would be pre- or post-tax deductions. Each time, we’d be forced to answer something along the lines of, “we don’t know yet— reasonable minds can disagree, and we are waiting on promised guidance on this from the state.” Well, throw that old answer out; we now know! The answers are the seemingly incongruous “taxable” and “post-tax.”
The Department of Financial Services (DFS) has issued a much-anticipated document setting the maximum employee contribution to pay for New York Paid Family Leave (PFL) at 0.126% of an employee’s weekly wage, up to the statewide average weekly wage. With a current average weekly wage of $1,305.92, this means that employee contributions will initially be capped at $1.65 per week.
Back in February, proposed regulations for New York’s Paid Family Leave Benefits Law were issued by the Workers Compensation Board (WCB). Today, the WCB released a revised set of proposed regulations containing some minor and a few substantial changes.