NY Construction Workers Gain Paid Family Leave Access
Starting January 2027, New York construction workers moving between union employers can qualify for Paid Family Leave benefits. Long Island contractors face new compliance challenges.
Construction workers in New York who move between multiple union employers will soon have expanded access to Paid Family Leave benefits. Governor Hochul signed Assembly Bill A4727 into law on December 19, 2025, fundamentally changing how construction industry employees qualify for job-protected leave under collective bargaining agreements.
What Changes for Construction Employers
Under current New York law, Paid Family Leave eligibility requires workers to complete 26 consecutive weeks with a single employer for full-time work, or 175 days for part-time employees. This threshold often excluded construction workers who regularly move between different jobsites and signatory employers within the same union framework.
Beginning January 1, 2027, the new law allows construction workers under qualifying collective bargaining agreements to combine their service time across multiple signatory employers. Instead of restarting the eligibility clock with each new contractor, workers can aggregate their service to meet PFL qualification requirements.
The change affects the same benefit structure already in place: up to 12 weeks of job-protected leave at 67% of average weekly wages, with a maximum weekly benefit of $1,228.53 for 2026. Employee contributions remain at 0.432% of gross wages, capped at $411.91 annually.
Long Island Construction Impact
Nassau and Suffolk County contractors participating in union agreements will need to coordinate PFL eligibility tracking across multiple employers. Many Long Island construction firms with 10-50 employees work on projects involving several signatory contractors, creating shared workforce pools that will now trigger expanded PFL coverage.
Small electrical contractors, HVAC specialists, and plumbing firms that participate in multi-employer collective bargaining agreements should expect administrative changes. When a skilled foreman or crane operator takes family leave, the absence may impact multiple Long Island jobsites simultaneously, not just the current employer of record.
Project scheduling and bid calculations will need to account for increased PFL utilization rates. Workers who previously couldn't qualify due to job mobility will now have access to extended family leave, requiring backup coverage planning for specialized trades and supervisory roles.
Open Questions for Employers
The new law leaves several implementation details unresolved. State regulators have not yet issued guidance on how payroll systems will track eligibility across multiple employers, or how contribution responsibilities will be allocated when workers move between signatory contractors.
Job protection obligations present another complexity. When an employee works for multiple contractors during their eligibility period and leave duration, it's unclear which employer bears primary responsibility for position restoration and benefit continuation.
Long Island contractors using Professional Employer Organizations should verify that their PEO will correctly apply multi-employer eligibility rules specific to construction CBAs. However, PEO arrangements often create additional complications when coordinating benefits across multiple actual employers, as the PEO structure may not align cleanly with union-based workforce sharing agreements.
Preparing for Implementation
Construction employers have 2026 to prepare for these changes. Key preparation steps include reviewing current collective bargaining agreements for PFL-related language, coordinating with payroll vendors and insurance carriers about multi-employer tracking capabilities, and updating project labor cost assumptions to reflect higher PFL utilization rates.
Contractors should also establish clear protocols with other signatory employers about sharing worker service information needed for eligibility determinations. Misaligned records between contractors could create disputes about whether specific employees qualify for benefits at crucial moments.
Small construction firms may benefit from working with benefits professionals who understand both New York employment law complexities and construction industry workforce patterns. Unlike one-size-fits-all approaches, specialized guidance can help navigate the intersection of union agreements, state regulations, and multi-employer benefit coordination.
Construction employers in Nassau and Suffolk Counties should begin discussing these changes with their union representatives, payroll providers, and benefits advisors well before the January 2027 effective date. Early preparation will help avoid administrative gaps that could expose employers to compliance violations or unexpected benefit costs.
Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This summary is for informational purposes only. Please contact your Benton Oakfield representative to review how these changes impact your specific plan documents.
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