- Obtain Insurance. The PFLBL requires private employers to purchase paid family leave
insurance. These policies are paid for by employee payroll deductions. It is strongly advised to
inform any and all employees before withholding such contributions. - Update Payroll Contribution Processes. Employers should make sufficient changes to payroll
processes to accommodate the collection of employee contributions needed fund paid family leave
insurance. The 2018 payroll contribution rate is set at 0.126% of an employee’s weekly wage with
a maximum cap of $85.56. - Change Handbooks and Manuals. Employers will want to document their compliance with the
new law in their handbooks and employee manuals. In addition, employees may want to institute
policies so that employee leave under various regulatory schemes is taken concurrently, rather than
consecutively. Otherwise, employees extend their time away from work by linking together the
eight weeks of paid leave under the PFLBL, the 12 weeks of unpaid leave under the FMLA, and
perhaps other leave policies. - Record keeping. Employers are required to conspicuously maintain the notices indicating proof of
coverage readily viewable by all employees. - Obtain Written Waivers for Ineligible Employees. If an employee does not fall within the purview
of the PFLBL, the employer may provide them with a waiver form to preclude such employees
from coverage.
There are many other considerations for employers to consider in order to ensure compliance and the least disruption of its workforce.
About Pavia & Harcourt LLP
Established in 1951, Pavia & Harcourt LLP is a business law firm concentrating in commercial, corporate, banking, media and entertainment, real estate, litigation and arbitration, intellectual property, and estate planning and administration. We are based in New York City.
About the Employment Law Group at Pavia & Harcourt LLP Pavia & Harcourt’s Employment Law Group represents a range of clients in all sectors, but with particular emphasis on fashion, finance and real estate. Its lawyers advise clients on a range of employment-related issues, including overtime, sexual harassment, discrimination in the workplace, internal investigations, and contractual matters.
Contacting Pavia & Harcourt LLP
Questions regarding matters discussed in this publication may be directed to the author, Adam Mitzner
([email protected]; +1 (212) 508-2318), or to any other Pavia & Harcourt lawyer with whom you
may have consulted previously. Contact information for all our attorneys is available on our website,
www.pavialaw.com.