New York Paid Family Leave Contribution Rates Decrease for 2024

Insights New York Paid Family Leave Contribution Rates Decrease for 2024 Courtney M. Roman · New York Paid Family Leave Contribution Rates Decrease for 2024 Maureen Bradley · February 12, 2024

New York’s Paid Family Leave Act (NYPFL) provides paid leave benefits to employees who need to take a leave of employment due to family issues. Employees are eligible if they worked for a private employer in New York State (NYS) and regularly worked 20 hours or more per week for 26 consecutive weeks or regularly worked less than 20 hours per week for 175 days.

An eligible employee could take paid family leave for one of the following reasons:

  • To bond with a newly-born, adopted or foster child;
  • To care for a close relative with a serious health condition; or
  • To assist when a family member is deployed abroad on active military service.

The Paid Family Leave Act was phased in over a four-year period (beginning in 2018) and eligible employees may receive up to 12 weeks of paid benefits in any 52-week period at 67% of their average weekly wage, capped at a maximum weekly benefit of $1,151.16 for 2024 (an increase of $20.08 from 2023).  The maximum benefit is calculated based on 67% of the $1,718.15 New York State Average Weekly Wage (up from $1,688.19 in 2023).

The New York Department of Financial Services recently completed its evaluation of the financial health of the NYPFL program and determined that the employee contribution rate will decrease to 0.373% for 2024 (down from 0.455% in 2023). The 2024 premium amount will be capped at an annual maximum employee contribution of $333.25 (down from $399.43 in 2023).

For more information on New York State Paid Family Leave, visit the New York State Paid Family Leave website.

Increase to New York Minimum Salaries for Executive and Administrative Employees for 2024

On October 4, 2023, the NY Department of Labor (NYDOL) published proposed regulations increasing the salary threshold for exempt executive and administrative employees under the NY Labor Law.  On December 27, 2023 the NYDOL adopted the proposed regulations which increase the NYS salary threshold as follows:

DateNew York City, Nassau County,
Suffolk County and Westchester County
Remainder of New York State
(Annually – $58,500)
(Annually – $55,341)
January 1, 2024$1,200/week
(Annually – $62,400)
(Annually – $58,458.40)
January 1, 2025$1,237.50/week
(Annually – $64,350)
(Annually – $60,405.80)
January 1, 2026$1,275/week
(Annually – $66,300)
(Annually – $62,353.20)

Upon the proposed increase taking effect (January 1, 2024), employers will have to increase the salary of executive and administrative employees accordingly to continue to treat them as exempt from overtime under New York State law.

In addition to the above, as per NY Govern Hochul’s announcement in May 2023, increases to the minimum wage rate for hourly employees in New York State, are as follows:

DateNew York City, Nassau County,
Suffolk County and Westchester County
Upstate New York
(Everywhere Else)
Current$15.00$14.20 (non-fast food employees),
$15.00 (fast food employees)
January 1, 2024$16.00$15.00
January 1, 2025$16.50$15.50
January 1, 2026$17.00$16.00
January 1, 2027, and every January 1 thereafterAdjusted for inflationAdjusted for inflation

For more information – visit the NYS Department of Labor’s website on Minimum Wage by clicking here.

Rimon’s employment law and executive compensation and benefits attorneys provide counseling advice as well as representation in litigation on a range of employment matters globally. Read more here: Employment Law, Employee Benefits and Executive Compensation – Rimon Law

This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with Rimon, P.C. or its affiliates. Prior results referred to in these materials do not guarantee or suggest a similar result in other matters.