NY Paid Family Leave Benefits Jump to $1,228 Weekly

New York State employers are dealing with three significant payroll changes that took effect January 1st: Paid Family Leave maximum benefits jumped to $1,228.53 per week, minimum wage increased to $17.00 per hour statewide, and overtime salary thresholds climbed above $66,000 annually on Long Island. For Nassau and Suffolk County businesses, these aren't just administrative updates—they're bottom-line impacts that require immediate attention.

The Numbers That Matter to Your Payroll

The New York Statewide Average Weekly Wage increased from $1,757.19 to $1,833.63, pushing the maximum weekly Paid Family Leave benefit from $1,177.32 to $1,228.53. Employees can still take up to 12 weeks annually at 67% of their average weekly wage, but the cap is now higher.

More immediately expensive for many Long Island employers: the overtime salary threshold for exempt employees jumped to $1,275 per week—that's $66,300 annually for Nassau County, Suffolk County, and Westchester businesses. Employees earning less than this threshold must receive overtime pay for hours worked beyond 40 per week, regardless of their job title or duties.

The statewide minimum wage increase to $17.00 per hour affects fewer professional service firms directly, but it sets the floor for all hourly positions and often drives up wages across the board as businesses compete for talent.

The Hidden Cost: Employee Confusion

Here's what many Long Island business owners miss: these benefit increases only provide value if employees understand what they have. Many New York employees still don't know they're entitled to Paid Family Leave, let alone understand how the benefit calculation works or when they're eligible to use it.

When employees don't understand their benefits, you get zero return on investment. They can't appreciate what they don't know they have, which means they don't give you credit as an employer for providing valuable coverage. That translates directly to higher turnover and recruiting challenges.

Long Island employers need to ensure their NY Paid Family Leave compliance goes beyond just paying the premiums—employees need to understand the benefit exists and how to use it when they need it.

NYC Employers Face Additional Requirements

New York City employers have another compliance layer coming February 22nd: a separate bank of at least 32 hours of unpaid leave that must be front-loaded at hire and replenished annually. This is in addition to existing paid sick leave requirements, and it covers expanded uses including caregiving, housing proceedings, and workplace violence recovery.

The administrative burden isn't trivial—you need separate tracking systems, different accrual rules, and clear policies explaining when employees can use which type of leave. Get it wrong, and you're facing Department of Consumer and Worker Protection penalties.

Action Items for Long Island Employers

First, audit your current exempt employees against the new $66,300 threshold. Anyone below that level needs to be reclassified as non-exempt and start receiving overtime pay immediately—this change was effective January 1st, so you're already behind if you haven't addressed it.

Second, verify your Paid Family Leave deductions are calculating correctly with the new benefit maximums. Your payroll provider should have updated automatically, but mistakes happen, and underpayments can trigger state audits.

Third, review your employee handbook and benefit communications. If your materials still reference old wage thresholds or benefit amounts, employees are getting incorrect information, which creates liability and undermines trust.

Finally, consider how you're communicating these valuable benefits to your team. The state provides coverage, but it's your job to make sure employees know what they have and how to access it when they need it.

Benton Oakfield's HR consulting team helps Long Island employers navigate these compliance requirements while ensuring employees actually understand and appreciate their benefits package—turning your investment into measurable retention and recruiting advantages.

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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