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- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes the "Family and medical leave independent savings account act"; provides a tax credit for employee compensation deferred to such accounts
In Assembly Committee · Labor · Sponsor Brian Kolb
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the labor law and the tax law, in relation to establishing the family and medical leave independent savings account act
Purpose or general idea of bill
Authorizes the Commissioner of Labor to establish a family and medical leave independent savings account plan for employees to draw benefits from during periods of leave pursuant the federal Family and Medical Leave Act, 29 D.S.C. §2601.
Summary of specific provisions
Section 1 of the bill amends the Labor Law enacting the following provisions:
* Authorizes the Commissioner of Labor to establish a family and medical leave independent savings account plan for all employees.
* Requires all employers, at the request of an employee, to defer part of the compensation of the employee by payroll deduction, and transfer the amount deferred to a financial organization chosen by the Commissioner.
* Grants employers the option to annually elect to match any amount of an employees contributions to a family and medical leave individual savings account.
* Entitles participants, during periods of approved family and medical leave, to a distribution from the accumulated funds deferred to their family and medical leave individual savings account, in full and partial disbursement options.
* Requires, when participants become separated from employment, any unused funds accumulated in a family and medical leave individual savings account to be distributed to the participant or rolled over to other deferred compensation plans or individual retirement accounts.
Section 2 amends the Tax Law to make amounts deferred from an employee's salary under a family and medical leave independent savings account plan exempt from New York State Tax.
Section 3 of the bill contains the effective date.
Justification
The federal Family and Medical Leave Act (FMLA) allows eligible employees to take up to twelve weeks of unpaid, job-protected leave to care for a newborn, newly-adopted child, or a sick family member. Many individuals often do not have enough accrued sick leave and cannot afford to-take twelve weeks of unpaid leave from work. These individuals are forced to return to work early, preventing them from taking the time necessary to properly care for a family member in need. This act would allow employees to set up tax deferred individual savings accounts to assist them during periods of FMLA leave. A family and medical leave individual savings account (FLISA) would be 100% employee funded unless employers choose to match contributions. A FLISA is a safe and easy way for individuals to save money for unexpected situations where they need to take FMLA leave. Under a FLISA plan, amounts will not be made available to participants or beneficiaries unless (i) the participant is on periods of FMLA leave (ii) the participant attains age seventy and one half, (iii) the participant has a severance from employment with the employer, or (iv) the participant. is faced with an unforeseeable emergency determined in a manner prescribed by the commissioner.
Prior legislative history
2004: Senate Labor Cmte./Assembly Labor Cmte. 2005-06: Senate Labor Cmte./Assembly Labor Cmte. 2007-08: Senate Labor Cmte./Assembly Labor Cmte.
Fiscal implications
No fiscal implications.
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.