Paid Family Leave Expanded with Reduced Employer Contributions

Annually, the Office of the Chief Financial Officer (OCFO) is required to review the Universal Paid Leave Fund for solvency. On March 1, 2022, the OCFO announced that the current employer contribution rate and benefits would result in a surplus of $500 million. Subsequently, the OCFO announced a reduction in the employer contribution from 0.62% of wages to 0.26%.

The maximum leave will also increase from eight weeks per year to twelve weeks. As a reminder, eligible employees may take up to eight weeks for parental leave, six weeks for their own medical condition, and six weeks for family care. For those who qualify, there are two weeks specifically for prenatal/ pregnancy leave, which is in addition to the current eight weeks annual maximum and will be in addition to the newly increased 12 weeks maximum.

The changes are effective July 1, 2022, but the Department of Employment Services has indicated that they may not be ready to implement the changes that quickly.

Employers should revise their leave policies and payroll systems as necessary.

OCFC Memo »