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November 20, 2017

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NYS Paid Family Leave Act - Deductions

Our firm has received several questions about the deductions for Paid Family Leave Act.  There is confusion about when should an employer start to deduct.  After hearing that the NYSPFL employer hotline was advising clients that they must start the deductions beginning 7/1, I called the NYS hotline and was told the same.  After challenging the answer, I was referred to the Workers Comp General Council.  The attorney that we spoke to did confirm that it is not necessary to begin deductions in July of 2017 however may begin in January.  The General Council continued to explain that actually a deduction does not need to occur at all if the employer elects to pay the premium on behalf of the employee.  


Although NYS has provided the opportunity for employers to deduct for this benefit on 7/1 it is our recommendation to wait until 1/1 to deduct as there are still unanswered questions that the State needs to answer.  If you do make the decision to collect the premium prior to the start of the benefit, you should consider whether the employee will be confused or frustrated by this new deduction for a benefit that they are unable to access until after the first of the year. 


We will be taking the position for our clients to wait until 1/1/2018 for the deductions.  If you would like to begin the deduction early, please contact your client service representative and we will be pleased to do so. 



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