An important Nov. 1 deadline for businesses related to the state’s new paid family and medical leave mandate will be delayed according to members of the authority overseeing the program.
The program was enacted during the 2019 legislative session and will impact virtually every business in the state.
Under the mandate, businesses with one or more employees are required to deduct 0.5% of each employee’s wages—beginning Jan. 1 2021—and submit those payments to the state's Paid Family and Medical Leave Insurance Authority.
Beginning Jan. 1 2022, employees are eligible for up to 14 weeks paid leave annually to care for their own or a family member’s illness or injury.
Leave payments will be 95% of the employee’s pay, capped at 60 times the minimum wage. Sole proprietors have the option of also participating in the program, provided they do so for a period of at least three years.
Under the timeline posted on the authority's website, businesses were required to start registering with the new paid leave program or apply to opt out of it for a private sector alternative beginning Nov. 1 of this year.
However, the authority is currently working with a pilot group of businesses to test the program used to register and accept employer contributions. As a result, registration will now begin Nov. 23.
CBIA will continue to monitor the progress of the implementation of the program.