{"id":4280,"date":"2016-04-06T16:38:19","date_gmt":"2016-04-06T22:38:19","guid":{"rendered":"http:\/\/admin.patheos.com\/blogs\/janetheactuary\/?p=4280"},"modified":"2016-04-06T16:38:19","modified_gmt":"2016-04-06T22:38:19","slug":"reading-the-new-parental-leave-law","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2016\/04\/reading-the-new-parental-leave-law.html","title":{"rendered":"Reading the new parental leave law"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><head><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><\/head><body><p>Lost in the hubub around California\u2019s and New York\u2019s minimum wage increases is the fact that, at the same time, New York enacted a family leave bill.<\/p>\n<p>Now, there are various articles providing the basics of the provisions of this legislation, for instance, at the <a href=\"http:\/\/www.huffingtonpost.com\/entry\/new-york-paid-family-leave_us_5702ae75e4b0daf53af042b7\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">Huffington Post<\/a>, but even on the <a href=\"https:\/\/www.governor.ny.gov\/news\/governor-cuomo-signs-15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">governor\u2019s official web page<\/a>\u00a0touting the new law, I can\u2019t find reference to the actual legislation, nor the name\/number of the bill itself. \u00a0The best I can find is an article from February 2, 2016, reporting that the state Assembly had passed a bill (with a <a href=\"http:\/\/assembly.state.ny.us\/leg\/?default_fld=&amp;bn=A03870&amp;term=2015&amp;Summary=Y&amp;Actions=Y&amp;Memo=Y&amp;Text=Y\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">link pointing to bill A3870A<\/a>), but that its prospects for being passed in the Senate were uncertain. \u00a0Ultiamately I found an <a href=\"http:\/\/www.bizjournals.com\/albany\/news\/2016\/03\/14\/cuomos-paid-family-leave-included-in-senate.html\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">article from March 14th<\/a> that family leave was a part of the budget negotiations, and, turns out, this is all in Part SS of budget legislation, so let\u2019s look at <a href=\"http:\/\/legislation.nysenate.gov\/pdf\/bills\/2015\/S6406C\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">this text<\/a>, starting on page 90.<\/p>\n<p>At this point, I\u2019m just going to be a bit dorky, and take some notes to answer the questions of how generous the benefits are, how sound the funding is, and whatever else seems relevant, because I\u2019ve gotten irritated at reading coverage that is so short on details. \u00a0For context, incidentally, New York State has had a longstanding state short-term disability benefit, which pays 50% of wages, for up to 26 weeks (summarized, e.g., <a href=\"https:\/\/www.growingfamilybenefits.com\/new-york-state-short-term-disability-benefits\/\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">here<\/a>); employees pay a small contribution as a percent of pay and employers are required to make up the difference for their employees, either by paying the cost for short-term disability insurance or by self-funding.<\/p>\n<p>**********************************************<\/p>\n<p>Section 1: \u00a0these are all amendments to worker\u2019s compensation legislation, so that the entire law reads as amendments and additions to the Worker\u2019s Comp law, section 201. \u00a0New subdivision 15 defines family leave:<\/p>\n<p>Care required due to a \u201cserious health condition\u201d of a family member (including physical or psychological care), or to bond with a new family member within the first twelve months after birth, or after placement for adoption or foster care, or any circumstance defined under FMLA because a family member has been called up for duty in the armed forces.<\/p>\n<p>Employees are eligible if they\u2019ve worked for\u00a026 consecutive weeks at a given employer. \u00a0Upon returning to work, they will be guaranteed their job or a comparable one, with the same pay and benefits, and the will be eligible to continue their health insurance during their leave. \u00a0Any return to work and resumption of leave period within 3 months will be counted as the same period of leave.<\/p>\n<p>Beginning 1\/1\/2018, the weekly benefit is defined as a maximum of 8 weeks in any 52 calendar week period, at 50% of the employee\u2019s average wage, up to a maximum of 50% of the state\u2019s average wage. \u00a0On 1\/1\/2019, this increases to 10 weeks, and 55%. \u00a0On 1\/1\/2020, 10 weeks, 60%. \u00a0On 1\/1\/2021 and thereafter, 12 weeks, and 67% of pay.<\/p>\n<p>The Superintendent of Financial Services may delay the increases for one or more years, taking into account the following factors:<\/p>\n<ul>\n<li>cost to employees<\/li>\n<li>\u201cthe current number of insurers issuing insurance policies with a family leave benefit and any expected change in the number of insurers issuing such policies after the benefit increase\u201d<\/li>\n<li>\u201cthe impact of the benefit increase on employers\u2019 business and the overall stability of the program ot the extent that informaton is readily available\u201d<\/li>\n<li>\u201cthe impact of the benefit increase on the financial stability of the disability and family leave insurance market and carriers\u201d and<\/li>\n<li>\u201cany additional factors that the superintendent of financial services deems relevant.\u201d<\/li>\n<\/ul>\n<p>The minimum benefit is set at $100\/week, and benefits may be taken intermittently, even in day increments.<\/p>\n<p>Benefits from disability and family leave programs may not be paid out concurrently, and in any case, the disability maximum of 26 weeks may not be lengthened with family leave benefits.<\/p>\n<p>Employees are required to give 30 days notice where possible (e.g., childbirth, placement of a child).<\/p>\n<p>There are defined processes for disputing family leave claims, and for the timing of benefit payouts. \u00a0And the Chair and Superintendent of Financial Services may require any insurer to provide annual reporting in terms of claims paid, duration, number of claims rejected, etc.<\/p>\n<p>Contributions: \u00a0employees pay for disability, 0.5% of pay, up to a maximum of 60 cents per week. \u00a0(This seems very low!) \u00a0For family leave benefits, section 3B on page 100 says, \u201con June 1, 2017 and annually thereafter on September first, the Superintendent of Financial Services shall set the maximum employee contribution, using sound actuarial principles and the reprots provided in section two hundred eight of this article. \u00a0No employer shall be required to fund any portion of the family leave benefit.\u201d<\/p>\n<p>The employer collects the contributions through payroll deduction. \u00a0\u201cIn no event may the employee\u2019s annual contribution for family leave exceed his or her percapita share of the actual annual premium charged for the same year and must be determined consistent with the principle that employees shold pay the total costs of family leave premium.\u201d \u00a0 Which seems to suggest that the intention is that employers find insurance carriers and pass along the premiums as a percent of pay. \u00a0But the \u201cmaximum employee contribution\u201d in the preceding section is then not clear, unless the expectation is that any costs bove this maximum must be the result of employers trying to cheat their employees. \u00a0There\u2019s some further text that contributions collected must be held in trust, in segregated funds, for the purpose of providing benefits, both applicable to disability and family leave benefits, and description of the various vehicles for providing these benefits.<\/p>\n<p>There\u2019s then some verbiage about the definition of employees, and various other bits about notice and claims, and penalties and arbitration. \u00a0For state employees, there is a special state insurance fund, with contributions determined actuarially. \u00a0And then here\u2019s juicy bit, on page 116:<\/p>\n<blockquote><p>On or before June 1, 2017, the Superintendent of Financial Services by regulation, in consultation with the chair of the workers\u2019 compensation board of this state, shall determine whether the family leave benefit coverage of a group accident and health insurance policy providing disability and family leave benefits pursuant to article 9 of the worker\u2019s compensation law, including policies issued by the state insurance fund, shall be experience rated or community rated, which \u00a0may include subjecting the family leave benefit coverage of the policy to a risk adjustment mechanism. \u00a0Notwithstanding any law to the contrary, the superintendent shall establish the rates for any community rated family leave beneift coverage and shall apply commonly accepted actuarial principles to establish community rated family leave benefit coverage rates that are not excessive, inadequate, or unfairly discriminatory.<\/p><\/blockquote>\n<p>What does this mean? \u00a0Basically that the costs will be spread out through the entire population, so that employees who work at an employer whose employees take this benefit infrequently will pay the same as those who take the benefit frequently \u2014 whether the differences are due to age, predominent sex of the employees, or income levels (the poor have been less likely to take California\u2019s maternity leave benefit, because 50% of a low wage doesn\u2019t go far enough). \u00a0The largely female staff of a hair salon will pay the same rate as the largely male staff of a repair shop.<\/p>\n<p>***************************************************<\/p>\n<p>And that\u2019s about it. \u00a0Notice that there is nothing in the legislation that states what the costs will actually work out to, just that, whatever they are, employees pay them, and the state will defer increases in benefit if they turn out to be too high. \u00a0But the news reports all give an actual figure, \u201cabout $1 per week per employee,\u201d per the previously-linked Huffington Post article. \u00a0Presumably there were actuarial studies that projected that this\u2019d be the expense, on average, but I haven\u2019t found anything.<\/p>\n<p>Now, as family leave benefits go, this is actually sensibly designed, insofar as it\u2019s paid by employees, not employers. \u00a0The only costs to the employer are the \u201ccost\u201d of an employee being more likely to go on leave if the benefit is paid than unpaid, which, quite honestly, as far as the matter of new parents is concerned, seems reasonable to me. \u00a0There is a question of whether employers will have difficulty with potential abuse, if employees with elderly parents, say, use the benefit year after year, in its one-day-at-a-time form, to work 3\/4s time, which could indeed be disruptive, and, as in any such benefit, potential for fraud, with a doctor certifying the \u201cserious illness of a family member\u201d when it\u2019s not the case. \u00a0This also requires an entirely new infrastructure of \u201cfamily leave insurance\u201d providers, and how likely this is to come into being I don\u2019t know, though that is the reason for the proposal of risk-adjustment mechanisms. But the big question \u2014 and the one we won\u2019t know the answer to until implementation \u2014 is how workers will feel about the (as yet unknown) percent-of-pay being deducted on their behalf.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Lost in the hubub around California\u2019s and New York\u2019s minimum wage increases is the fact that, at the same time, New York enacted a family leave bill. Now, there are various articles providing the basics of the provisions of this legislation, for instance, at the Huffington Post, but even on the governor\u2019s official web page\u00a0touting [&hellip;]<\/p>\n","protected":false},"author":2209,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4280","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reading the new parental leave law<\/title>\n<meta name=\"description\" content=\"Lost in the hubub around California&#039;s and New York&#039;s minimum wage increases is the fact that, at the same time, New York enacted a family leave bill. 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