Insights

DFS Announces PFL Premium Rate for 2020


On August 30, 2019, the New York Department of Financial Services (DFS) announced the New York Paid Family Leave (NY PFL) premium rates for 2020. The announcement came via a DFS decision titled “Decision on Premium Rate for Family Leave Benefits and Maximum Employee Contribution for Coverage Beginning January 1, 2020.”

On employee contributions, according to the DFS PFL decision, effective January 1, 2020, the NY PFL premium rate will increase to 0.270% of the first $72,860.84 of an employee’s annual earnings, for a maximum per employee premium contribution of $196.72 per year. As a reminder, NY PFL premium caps and benefit levels are tied to the New York state average weekly wage (NYSAWW). The NYSAWW that applies to PFL calculations for calendar year 2020 is $1,401.17; the annualized equivalent is $72,860.84. Comparatively, the NYSAWW that applies to PFL calculations for 2019 is $1,357.11; the annualized equivalent is $70,569.72).

On PFL benefits, according to the DFS PFL decision, the benefit percentage payable will increase from 55% (for PFL claims commencing in 2019) to 60% (for PFL claims commencing in 2020) of an employee’s average weekly wage, up to a maximum of 60% of the NYSAWW. The benefit duration, however, remains the same in 2020 — 10 weeks (less any PFL time taken in the prior 52-week lookback period).

Employers should continue to monitor compliance with the NY PFL rules. Employers will need to coordinate with their payroll providers to ensure employee contributions are taken correctly, depending on whether the employer is absorbing the cost of PFL premiums (partially or fully) on behalf of New York employees. Employers with questions on these NY PFL adjustments should reach out to their NFP advisor/account manager. Employers can also reference the NY PFL employer resource on model language for employee materials, linked below.

DFS PFL Decision »
NY PFL Model Language for Employee Materials »