Life can be full of surprises that sometimes require taking time off from work. This can be an emotional time with undue stress added to an already difficult situation. In these cases, employees who are eligible and qualify for paid family leave can apply with their company to take advantage of the help the paid leave time can provide.
What is Paid Family Leave? – An Overview of the Policy
When an employee has a qualifying reason for taking extended time off from work, paid family leave is an option.
Generally, the amount of time an employee can receive paid time off is up to 12 weeks.
Qualifying reasons for taking paid family leave include:
- The employee needs to provide care for a seriously ill family member.
- The employee has experienced a serious illness and needs time to recover.
- To establish a bond with a newborn, adopted, or foster child within 12 months.
Who Qualifies for Paid Family Leave? Eligibility and Requirements
To take paid family leave, an employee must first meet the eligibility requirements. These include:
- The employee must be a resident of the state.
- The employee works for a private company in the state where they are a resident.
- If the company is a public business versus a private business, the public company must have opted into the program to allow paid family leave.
- Full-time employees must meet the requirements for the time they have been on the job, which is working 20 or more hours a week on a regular basis for 26 consecutive weeks.
- Part-time employees with a work week of less than 20 hours are eligible to request paid family leave after accruing 175 workdays. Unlike full-time employees, part-time employees’ workdays are not required to be consecutive.
The Impact of Paid Family Leave on Employees and Families
An employee taking family leave benefits in several ways, not only for themselves but also for their families.
Wages
An employee on paid family leave is included in any pay increases provided by the company for all employees. Bonuses are also paid to employees on leave.
Pay that is not included immediately for employees on paid family leave includes performance increases by the employee, seniority increases, or an increase for time worked on the job.
Less Stress
One of the most important benefits of paid family leave is that it eliminates the stress that an employee faces when a situation arises that requires time away from the job. Paid family leave removes the difficult decision that some employees must make when they are in a position where they must choose between their job or caring for a family member.
Financial Security
Once a qualifying employee is approved for taking paid family leave, the employee will continue to receive their wages, although the amount will be adjusted.
When it is time to do yearly IRS taxes the pay received while on paid family leave is subject to federal tax. Paid leave pay is not included in state taxes. It is taxed differently than regular wages or other types of leave, such as medical or sick leave.
Job Security
An important benefit of paid family leave is that the employee’s job is protected while they are unable to work. Upon returning to work, the employee is either reinstated to their former position, or they are placed in an equivalent position that will still pay them the same pay rate and with the same benefits the employee had before taking the paid leave.
Other Benefits
Additional benefits include other insurance the employee has access to will remain in place. This includes coverage, such as the employees’ life insurance, annual leave, disability insurance, and sick leave.
Employees who take paid family leave are protected from retaliation or discrimination. This means an employer cannot use a request and approval for paid family leave against an employee in any way regarding their job, pay, insurance coverage, or other benefits they are entitled to.
Contact Us
When you need paid family leave and are not sure what to do, contact our team at Margolis & Associates so we can help with your small or medium business’s HR needs. Our associates can help by answering any questions you may have about your insurance needs, including health and life insurance in Westchester, NY.