Employees will pay more of their paycheck towards the Paid Family Leave benefit program in 2019 - 0.153% of gross wages up to a yearly maximum of $107.97 (up from 0.126%/$85.56 in 2018). Moreover, as per the original provisions of the Paid Family Leave law, employees will be permitted to take up to 10 weeks of paid family leave in 2019, and receive 55% of their average weekly wage, up to a maximum of $746.41.
As we have discussed previously, many employer groups are concerned that the higher payout in 2019 will incentivize more employees to take paid family leave more often, and for longer periods of time as 10 weeks will be now be available to them. If that occurs, the paid family leave/disability insurer losses that have been reported, and purportedly caused the State to increase the employee contribution, will assuredly increase. At that point, especially if the losses are large, many employer groups fear that the State will then impose a duty on employers to contribute to the Paid Family Leave program.
Employers must be prepared to cover for employees using paid family leave, and must be familiar with the law on processing paid family leave applications. We can help, so please contact us.