The New York Department of Financial Services has released 2023 updates to its paid family leave (PFL) program, including an expansion of benefits and reduction in the employee contribution rate. A previous alert on New York’s PFL program is copied below for reference.

• The 2023 premium amount has been reduced to 0.455% of employees’ gross wages (from 0.511% in 2022).
• The annual cap on employee contributions has been reduced to $399.43 (from $423.71 in 2022).
• The PFL benefit rate remains unchanged for 2023, although the maximum benefit dollar amount has increased. Employees may receive 67% of their average weekly wage up to a maximum weekly benefit of $1,131.08 (up from $1,068.36 in 2022), or 67% of New York State’s Average Weekly Wage for 2023 benefit determinations, which is set at $1,688.19.

NY PFL Benefit and Average Weekly Wage Increases (Originally sent October 2022)

New York’s Paid Family Leave (PFL) law, which requires New York employees to be allowed to take up to 12 weeks of job-protected PFL at 67% of the employee’s pay up to the State’s average weekly wage (AWW), completed its four-year phase-in as of 2021. New York State recently announced increases to both the AWW and the taxable wage cap for 2022.

• The PFL contribution rate remains the same in 2022; employees will continue to contribute .511% of taxable wages. However, the taxable wage cap will increase to $82,917.64, resulting in a maximum employee contribution of $423.71 per year (up from $385.34 in 2021).
• The AWW increases to $1,594.57 for 2022. This change will result in an increased maximum weekly PFL benefit of $1,068.36 (or 67% of $1,594.57), up from $971.62 in 2021.  
• Eligible employees may take PFL to bond with a new child, to care for an ill family member, or to assist loved ones with a family member deployed abroad on active military duty.
• Leave may be taken all at once or in full-day increments.
• Under a law signed by former New York Governor Cuomo in April, 2020, employees are guaranteed job protection and financial compensation when they and/or their minor child(ren) are under an order of quarantine or isolation due to COVID-19. PFL may be available under these circumstances.
• New York’s PFL law was designed to be implemented through employer-sponsored plans. PFL coverage is usually added as a rider on an employer’s existing disability insurance policy. Benefits can also be provided through a self-funded plan approved by the New York Workers’ Compensation Board.