30 Oct

October 2020 Connecticut HR Legal Updates

Posted at

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Upcoming Employer Requirements for CT Paid Family Medical Leave

What happened?
In June 2019, Governor Lamont signed the Paid Family and Medical Leave (PFML) bill into law, creating requirements that employers will need to abide by in the coming months. 

What are the details?
The Paid Leave Authority has created a timeline for employers to follow to ensure the PFML program is introduced smoothly.

  • On November 1, 2020, employers with at least one employee within the state of Connecticut will need to register with the Paid Leave Authority.
  • On January 1, 2021, employers will start administering payroll deductions of 0.5% per employee. Contributions are based only on earnings up to the Social Security cap.
  • On January 1, 2022, employees will be allowed to apply for paid family leave compensation.

The Paid Leave Authority will publish literature in the future meant to help employers and employees understand all aspects of the Connecticut Paid Leave program. The Paid Leave Authority will be posting information soon about which file types are accepted by the Authority to accept fund contributions, stating that at a minimum ACH files will be accepted. The Paid Leave Authority is still working with payroll companies to establish the process by which deductions and payments will be remitted.

Employers will be able to petition to opt out of the state’s program. To qualify they will need to participate in a private plan that will provide at least the same monetary benefit for employees and be usable for the same reasons. If employers use a private plan, their contributions will instead go to that private plan instead of being sent to the state.

An employer guide published by the Paid Leave Authority can be found here. The Authority also published a video, found here.

What do employers need to do?
Employers should review the following content to know what they are required to do:

  1. Make payroll deductions.
  2. Submit employee contributions.
  3. Communicate with the Paid Leave Authority and Employees about Leave Requests.
  4. Confirm with Third Party Payroll Administrator.
  5. Receive Copy of Payment & Report.
  6. Notify Employees.

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