New York State broke ground and made waves when it introduced the nation’s most generous Paid Family Leave legislation in 2016.
By 2021, benefits had been fully phased in to provide up to 67% of an employee’s average weekly wage for up to 12 weeks. The benefit continues to increase with inflation, although the percentage has remained the same since then.
But the benefit isn’t just available to workers under covered employers. Select carriers in NY can write stand-alone PFL for public employees, self-employed workers, and independent contractors, as well as union employees as part of a collective bargaining agreement.
What is PFL?
Under the law, most private employers in NY are required to provide PFL coverage to full-time employees after they have put in at least 26 consecutive weeks of 20 or more hours per week and part-time employees who have worked at least 175 days.
Since then, more than a dozen states have introduced paid family leave coverage or disability insurance (or both, in the case of PFML) to provide partial pay and job protection to workers who need time off:
- To treat or recover from their own health condition
- Bond with a new child or adopted or foster child within the first year
- Care for a family member
Who Qualifies for Stand-Alone PFL in NY State?
A stand-alone paid family leave policy provides access to this important benefit to 1099 independent contractors who don’t fall under the disability benefits law to qualify for DBL in NY state, public employers who aren’t mandated to provide paid family leave insurance, and union employees.
Note: Union employees can gain access to stand-alone PFL benefits only as part of a collective bargaining agreement. Public employers with union workers should understand that they must file an opt-in notice with the Worker’s Compensation Board and then provide 90 days notice any non-represented employees. They must also identify employees who qualify for a waiver for the benefits.
How to Use PFL As a Doorway to Enhanced Employee Benefits Packages
PFL is an important benefit, especially with so many members of the “sandwich generation” caring for aging parents or even siblings, as well as young children at the same time. But short-term disability benefits, long-term disability and ancillary benefits like dental and vision, are equally important.
According to a recent Bankrate survey, only 46% of Americans have enough emergency savings to cover three months of expenses if they were ill, injured and out of work. Nearly one-quarter (24%) have no savings at all. Within the past year, 37% had to tap into their emergency savings.
Today’s employees need better, more robust benefits than ever before to fight the economic uncertainty so prevalent in the U.S.
Enriched DBL, coupled with Group Life / AD&D and other ancillary benefits, can help give people the peace-of-mind they need to remain at their most productive.
Stand-alone PFL Opens a New Market for Brokers
As the gig economy grows, stand-alone PFL represents an important market for DBL Center insurance brokers. As your insurance wholesaler in New York, the DBL Center has the carrier relationships to help you write stand-alone PFL or bundle it with Enriched DBL and ancillary benefits for even greater savings.
Let The DBL Center help you increase your profits for the second half of 2022 while creating satisfied customers who trust you for their insurance needs.
FAQs
What does PFL mean on W-2?
PFL on an employee’s W-2 form in New York represents taxes taken out to cover Paid Family Leave insurance.
Can you take NY PFL for yourself?
NY PFL does not cover a worker’s injury or illness. You can file a Paid Family Leave claim to take care of a loved one with a medical condition, to bond with and care for a newborn or newly adopted or foster child within the first year, or to take care of the home during a military spouse’s deployment.
Disability benefits in New York provide partial pay if an employee is out of work due to an injury or illness incurred off the job.
Are PFL and FMLA the same thing?
No, PFL and FMLA are not the same thing. The Paid Family Leave law in NY covers 12 weeks of job-protected leave at partial pay. The Family Medical Leave Act is a federal law protecting your job if you take time off for your own medical condition or to care for a loved one with a medical condition. FMLA is not paid leave.
