New York Introduces Paid Family Leave and $15.00 Statewide Minimum Wage

On March 31, 2016, New York Governor Cuomo signed the 2016-2017 State Budget, which includes two components that will heavily affect New York Employers: the Paid Family Leave Benefits law and $15.00/hr statewide minimum wage.

A. Paid Family Leave Benefits Law

Effective January 1, 2018, New York will have the most comprehensive paid family leave (PFL) benefit in the United States.  PFL is a worker-funded disability program and is not paid by employers.  Employees who have worked for 26 or more consecutive weeks for a covered employer will be eligible for up to 8 weeks of partially paid leave, increasing each year to a maximum of 12 weeks by January 1, 2021, based on the below schedule.

Eligible employees can take a total of 26 weeks of disability benefits, including PFL, within a consecutive 52-week calendar period.  Unlike other New York disability benefits, employees will not be subject to a waiting period before becoming eligible for PFL benefits.  However, employers will still be able to establish policies prohibiting multiple employees from receiving PFL benefits at the same time while caring for the same family member.

Employers are prohibited from requiring employees to expend their accrued, unused vacation or paid time off (PTO) while receiving PFL benefits, though employees may voluntarily choose to do so; in that event, employers may request reimbursement for any PFL benefits received while the employer pays for vacation or PTO.  Employers are prohibited from retaliating against employees who have applied for PFL benefits.  Employers must reinstate employees to the same position they held prior to the leave commencement, or a comparable position.