2008 New York Paid Family Leave Worksheet ( May 2008 )
One of the difficulties involved with discussing the impact that the state family leave proposals, S.5821 and
A.9245, would have on businesses in New York State, is trying to project the increase in leaves requested
and the subsequent additional cost to the business. We may have found the answer.
California started its paid leave program in July 2004 and has been tracking claims data. Using the first
full year of claims data, 2005, as the base year, we looked at the increases in claims in subsequent years.
PFL claims increased 9.6% in 2006 over 2005.
PFL claims increased 8.25% in 2007 over 2006.
PFL claims increased 6.8% in the 1st quarter of 2008 over the 1st quarter of 2007 and if this holds for the year,
it will equate to a 25% increase in PFL utilization over three years in California.
Use this actual experience in California to project how paid leave in New York might affect your organization.
FMLeaves in 2007 X 25% increase over three years X replacement costs = Additional costs
Example: 6 1.5 $612 = $11,016
Replacement costs might be the overtime pay needed to fill in for 12 weeks while the employee is
on leave plus the employer's share of the insurance benefit continuation. For example, for a $1,000 per week
employee, an extra $500 per week in OT would be needed. Also, the employer is still paying half
of the $900 per month family insurance premium, $450, or $112 /week. So the extra weekly expense is $612.
Using the worksheet, 1.5 additional employees taking 12 weeks of leave with replacement costs of $612
per week results in additional costs of $11,016. Add your own additional cost factors as needed.
Plug in your numbers, see the result and then talk to your state Senator and Assembly Member
about the impact on your organization!