What's happening
This bill amends the law to prohibit employers from funding any administrative costs of New York's paid family leave program.
Why it matters
Shifts all administrative costs of New York's paid family leave program away from employers, potentially leading to these costs being covered solely by employees or the state. This could affect how much employees have deducted from their paychecks or how the program is managed.
May lower direct expenses for businesses, especially small employers, by ensuring they are not responsible for any part of the program’s administrative overhead. This could impact hiring, retention, or employer willingness to participate in the program.
Could prompt changes in how the state or insurers set employee contribution rates, since all funding for both benefits and administrative costs must come from non-employer sources. This may influence the program’s financial sustainability or employee take-home pay.
Alters the balance of responsibility in funding social insurance programs, raising broader questions about who should bear the costs of administering public benefit programs—employers, employees, or taxpayers.
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Who cares
Headline styles
Employers Can't Fund Leave Costs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Stop Employers Funding Leave Admin
In Assembly Committee · Labor · Sponsor John T. McDonald III
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
323
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to prohibiting any funding of the administrative costs of the state's paid family leave program by employers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 3 of section 209 of the workers' compensation law, as added by section 10 of part SS of chapter 54 of the laws of 2016, is amended to read as follows:
(b) Family leave benefits. On June first, two thousand seventeen and annually thereafter on September first, the superintendent of financial services shall set the maximum employee contribution, using sound actuarial principles and the reports provided in section two hundred eight of this article. No employer shall be required to fund any portion of the family leave benefit or any administrative costs associated with such benefit.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00464-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to prohibiting any funding of the administrative costs of the state's paid family leave program by employers
Purpose or general idea of bill
This bill is intended to ensure that employers are not forced to pay any of the costs related to the state's paid family leave program, including the costs of implementing the program.
Summary of specific provisions
Section 1 amends Workers Compensation Law S 209(3) by adding language to provide that no employer shall be required to fund any portion of the family leave benefit or any administrative costs associated with such benefit.
Section 2 lists the effective date.
Justification
As part of the state's 2016-17 budget, New York State created the paid family leave program. Under this program, all employees in the state will be entitled to 8 weeks of paid leave, increasing to 12 weeks of leave when the program is fully implemented in 2021.
The Governor and the Legislature agreed that this program will be funded via a minimal weekly employee payroll withholding, and that none of the program's costs will be borne by employers. This legislation shall ensure that employers will not pay any of the costs related to the state's family leave benefit.
Legislative history
2018 - S.1993: Advanced to 3rd Reading 2017 - S.1993: Passed Senate 2016 - S.7950: Passed Senate
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.