While employers continue to be consumed with addressing the many thorny employment issues related to the COVID-19 pandemic, they may be caught unaware by a few rapidly approaching deadlines related to Connecticut’s Paid Family Medical Leave Act (FMLA).
Of particular note, on Nov. 1, 2020, employers covered by this law may begin registering with the Paid Family Medical Leave Insurance Authority, and on Jan. 1, 2021, they must begin withholding employee contributions to the Authority.
By way of background, Gov. Ned Lamont last year signed into law one of the nation’s most generous paid FMLA laws that will impact nearly every Connecticut employer and employee.
It is probably the most significant workplace law that Connecticut has passed in decades.
It applies to every private employer with one or more employees except private elementary and secondary schools. It also applies to certain “covered public employees,” including state employees who are not covered under a labor contract and public employees whose labor union negotiates inclusion into the program (and then all other non-union public employees of that public entity also are covered).
There are two major components of the law: (1) It creates an insurance trust fund that will be administered by a new quasi-public agency — i.e., the Authority; and (2) it amends the existing Connecticut FMLA in significant ways.
Employees will be eligible for benefits once they have been employed by any employer in Connecticut for at least 12 weeks and have earned at least $2,325 during the highest-earning quarter in the first four out of the five recently completed quarters.
The weekly benefit amount is based on a formula and is capped at 60 times the state’s minimum wage. Therefore, when Connecticut’s minimum wage increases to $13 per hour on August 1, 2021, the maximum weekly amount will be $780.
Eligible employees may take 12 weeks of paid FMLA in a 12-month period (plus an additional two weeks for a serious health condition related to pregnancy) for:
- Their own serious health condition;
- The serious health condition of a covered family member;
- Birth, adoption or placement of a child in foster care;
- Service as an organ or bone marrow donor; or
- A qualifying exigency when a spouse, child or parent is on active duty; to care for a covered military family member; and due to an act of family violence.
The current definition of a family member is expanded to add siblings, grandparents, grandchildren, and an individual related to the employee by blood or close association.
Many employees are likely to cheer these benefits. What they may be surprised to learn, however, is that this insurance program will be funded solely by an employee payroll tax not to exceed 0.5% of the employee’s earning up to Social Security contribution and benefits base (currently $132,900).
Employers need to begin planning for, and communicating with their employees about the payroll tax so that they are not surprised by the additional deduction that will soon hit their paychecks.
Sarah S. Healey is a partner in Carmody Torrance Sandak & Hennessey’s litigation group.
