NY Paid Prenatal Leave Law: New Requirements for 2025

New York employers are facing expanded leave obligations in 2025, with significant updates to both Paid Family Leave benefits and a brand-new requirement for paid prenatal leave. These changes affect every private employer in the state and demand immediate attention to payroll systems and HR policies.

What the Law Requires

The most significant change is New York Labor Law §196-b, which mandates that all private employers provide pregnant employees with 20 hours of paid prenatal leave per calendar year. This leave can be used in hourly increments for healthcare services related to pregnancy and is completely separate from existing paid sick leave entitlements.

Simultaneously, New York's Paid Family Leave program has increased its benefit calculations for 2025. Employees now receive 67% of their average weekly wage, capped at $1,177.32 per week based on the current State Average Weekly Wage of $1,757.19. The maximum employee payroll deduction has also increased to $354.53 annually, representing 0.388% of gross wages per pay period.

Additionally, according to NYSDOL, the COVID-19 sick leave law will expire on July 31, 2025, requiring employers to update their leave policies mid-year.

Impact by Business Size

• Small businesses (under 50 employees): Must immediately implement prenatal leave tracking systems and update payroll deductions for PFL. The $354.53 maximum annual deduction affects budget planning for all wage levels.
• Mid-size companies (50-500): Need comprehensive policy updates covering both prenatal leave administration and revised PFL calculations. Consider the interaction between these benefits and existing FMLA obligations.
• Large employers (500+): Must coordinate prenatal leave with existing comprehensive benefits packages and ensure consistent application across multiple locations. Higher employee volumes mean greater financial impact from increased PFL contributions.

Compliance Deadlines

The prenatal leave requirement and updated PFL calculations both took effect January 1, 2025, meaning compliance is already mandatory. Employers have until July 31, 2025, to prepare for the expiration of COVID-19 sick leave provisions and update their policies accordingly.

Retail employers with 10 or more employees face an additional deadline of March 3, 2025, to implement workplace violence prevention policies under the Retail Worker Safety Act, adding another layer of compliance complexity.

Next Steps

Review your current leave policies immediately to ensure prenatal leave provisions are properly documented and communicated to employees. Update payroll systems to reflect the new PFL deduction rates and benefit calculations. As these regulatory changes intersect with existing benefit structures, including fertility support programs, comprehensive policy coordination becomes essential. Benton Oakfield's compliance team can help you navigate these requirements and ensure your business stays compliant. Contact us to review your policies and implement the necessary changes before facing potential penalties.

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