If you run a business in New York with even one employee, New York State Paid Family Leave employer requirements almost certainly apply to you. Once a private employer has one or more employees for 30 days in any calendar year, PFL coverage becomes mandatory four weeks after that 30th day.1New York State Paid Family Leave. Private Employer Coverage Requirements Company size is irrelevant. A one-person shop is covered on the same terms as a workforce of hundreds.
Who Has to Provide Coverage
Every private employer meeting the 30-day threshold must carry a PFL insurance policy, typically added as a rider to the statutory disability (DBL) policy. The obligation attaches to the business, not to any particular employee.
Public employers, including state agencies, municipalities, and public authorities, are not automatically covered. They may voluntarily opt in, and once they do, they must follow the same rules as private employers.2New York State Paid Family Leave. Public Employers
Domestic Workers in a Private Household
If you employ a domestic worker in a private household, coverage is required when that worker is employed 20 or more hours per week by the same employer and works 30 or more days in a calendar year. Hours count broadly: time at the residence (including sleeping and eating), plus off-premises errands or duties, all count toward the 20-hour weekly minimum.3New York State Workers’ Compensation Board. Household Employers (Employers of Domestic Workers) If every domestic worker in the household individually works fewer than 20 hours per week and does not live on the premises, no coverage is required.
Employee Contributions and the 2026 Rate
PFL is funded almost entirely through employee payroll deductions. The Department of Financial Services sets the rate each year. For 2026:4New York State Department of Financial Services. Decision on Premium Rate for Paid Family Leave Benefits and Maximum Employee Contribution for Coverage Beginning January 1, 2026
- Employee contribution rate: 0.432% of gross wages per pay period.
- Maximum annual contribution: $411.91.
- New York State Average Weekly Wage: $1,833.63.
- Maximum weekly benefit: $1,228.53 (67% of the NYSAWW).
Deductions come out of after-tax wages, and total contributions get reported on the employee’s W-2 in Box 14.5New York State Paid Family Leave. Cost and Deductions You may choose to cover the premium yourself as an added benefit, but you cannot deduct more than the rate and cap set by DFS. If you miss withholding a deduction during a pay period, you cannot make it up by taking a larger deduction later; that missed amount comes out of your pocket.
Eligibility Thresholds
Not every employee is immediately eligible for benefits, but contributions generally begin at hire. Eligibility works like this:6New York State Paid Family Leave. Paid Family Leave and Other Benefits
- 20 or more hours per week: eligible after 26 consecutive weeks of employment.
- Fewer than 20 hours per week: eligible after 175 days worked.
Opt-Out Waivers for Employees Who Won’t Qualify
Some employees will never meet those thresholds because of how they’re scheduled. You must offer a waiver (Form PFL-Waiver) to any employee who falls into either of these categories:
- Regularly scheduled for fewer than 20 hours per week and will not work 175 days in the year.
- Regularly scheduled for 20 or more hours per week but will not be employed for 26 consecutive weeks.
An employee who signs the waiver pays no contributions and receives no PFL benefits. Keep completed waivers on file. If the employee’s schedule later changes to meet eligibility requirements, the waiver automatically revokes and payroll deductions begin.5New York State Paid Family Leave. Cost and Deductions
Posting and Written Notice Duties
Every covered employer must display a PFL notice where employees and applicants can easily see it. The required form is PFL-120 (Notice of Compliance), which your insurance carrier typically provides.7New York State Paid Family Leave. Notice of Compliance Post it at every worksite.
PFL information must also appear in your employee handbook or written benefits guide. If you don’t maintain a handbook, you must give each employee separate written guidance explaining PFL rights, obligations, and how to file a claim.8New York Codes, Rules and Regulations. 12 CRR-NY 380-7.2 – Employer Obligations The state’s Statement of Rights (PFL-271S) is designed for that purpose, and you should keep request forms available for employees who ask about leave.
Handling a Leave Request
The employee starts the process by completing Part A of the Request for Paid Family Leave (Form PFL-1) and handing it to you. You then complete Part B, which asks for payroll data, employment dates, and the employee’s work schedule. You must return the completed form to the employee within three business days.9New York State Paid Family Leave. Handling Requests Missing that window creates delays and can draw regulator attention.
The employee then sends the full package, including any medical or military certifications, to your insurance carrier. The carrier has 18 calendar days to pay or deny the completed claim.10New York Codes, Rules and Regulations. 12 CRR-NY 380-7.1 – Claim Determination Stay in touch with the carrier during that period in case additional documentation is needed.
Employees are required to give you 30 days’ advance notice when the need for leave is foreseeable, such as a planned adoption or an expected due date. For unforeseeable situations like a medical emergency, they must give notice as soon as possible.11Legal Information Institute. 12 NYCRR 380-3.1 – Employee Notice Requirements for Paid Family Leave
Job Protection and Health Insurance During Leave
You must maintain the employee’s health insurance during PFL on the same terms as if they were still working. The employee remains responsible for their share of premiums.12New York State Paid Family Leave. Your Rights and Protections
When leave ends, the employee is entitled to return to the same job or a comparable one with equivalent pay, benefits, and working conditions. Comparable is not a loose standard; the replacement role must genuinely match what the employee had before.
No Retaliation
You cannot discriminate or retaliate against any employee who requests or takes PFL. That prohibition covers termination, pay cuts, and benefit reductions, and it extends to any workplace discipline tied to the leave. A judge who finds a violation can order reinstatement, back wages, attorney’s fees, and penalties up to $500.
Coordinating With Federal FMLA
If you’re covered by both New York PFL and the federal Family and Medical Leave Act, the two leaves can run concurrently when an employee’s situation qualifies under both, such as caring for a seriously ill parent. To run them together, you must notify the employee that the leave is being designated under both programs.6New York State Paid Family Leave. Paid Family Leave and Other Benefits
FMLA provides 12 weeks of unpaid, job-protected leave; PFL provides 12 weeks of paid, job-protected leave. Running them concurrently means the employee receives PFL pay during what would otherwise be unpaid FMLA time, without extending total leave beyond 12 weeks. Employers with fewer than 50 employees generally are not subject to FMLA but still must comply with PFL if they meet the 30-day coverage threshold.
Penalties for Non-Compliance
Consequences for failing to carry PFL insurance escalate quickly. The Workers’ Compensation Board can impose both civil and criminal penalties:13New York State Workers’ Compensation Board. Penalties for Not Having Disability and Paid Family Leave Benefits Coverage
- Civil penalty of up to 0.5% of total payroll during the uncovered period, plus an additional fine of up to $500 for each period of noncompliance.
- Claims liability equal to the greater of the total PFL benefits paid by the Special Fund during the gap or 1% of payroll during that period.
- First-offense misdemeanor punishable by a fine of $100 to $500, up to one year in jail, or both.
- A second violation within five years can bring a fine of $250 to $1,250. A third or subsequent violation within five years can reach $2,500.
Personal liability is real. Sole proprietors, partners, and corporate officers (specifically the president, secretary, and treasurer) can be held personally responsible for these penalties. The corporate form does not shield them. And on the withholding side, an employer who misses a deduction during a pay period absorbs the cost; the regulation specifically bars making up a missed deduction with a larger future withholding.8New York Codes, Rules and Regulations. 12 CRR-NY 380-7.2 – Employer Obligations