Connecticut Compliance Change (CT Public Act 19-25) Updates
On January 1, 2021, the Paid Family and Medical Leave Law takes effect in Connecticut. The State Administered Insurance Program allows eligible employees to receive partial wages when they have medical or any other emergencies as part of Paid Family and Medical Leave[1]. The program endowment will be made from the employee’s contribution, not their employer. As of January 1, 2022, eligible employees with a full working year contribution may request claims for the State wage benefits.
[1] CT Public Act No 19-25
Who is Eligible?
- Small / Private employees and employers who were not previously entitled.
- A self-employed individual also qualifies under the new law.
Which events are acceptable for Paid Family and Medical Leave?
- The birth, adoption, or foster care of a child under 18.
- Care for family members of the employee with serious health.
- Personal illness will run concurrently with other leave such as PTO, vacation, or TAFW.
Note: An eligible employee may elect, or an employer may require the employee, to substitute any of the accrued paid vacation leave, personal leave, or medical or sick leave of the employee for leave Substitute Senate Bill No. 1 Public Act No. 19-25 34 of 47 provided under subparagraph (C), (D) or (E) of subdivision (2) of subsection (a) of this section for any part of the [sixteen-week] twelve-week period of such leave under said subsection or under subsection (i) of this section for any part of the twenty-six-week period of leave, provided such eligible employee may retain not less than two weeks of such leave.
How does an Employee Become Qualified?
An employee must be employed for at least three (3) months before the leave can be granted. Employees may be qualified for twelve (12) weeks leave for a working year. Be aware that this is a vast difference from the previous law that only offered twelve (12) weeks in twenty-four (24) months.
Leave can be selected from options under the Federal FMLA and adhere to both Federal and State Laws.
How are withholdings and deductions calculated?
Beginning January 1, 2021, deductions for employees are capped at 0.5 percent with no employer’s match. The first payment should be submitted to the Connecticut Paid Leave Authority by March 31, 2021. By request, employers will deduct and withhold employee’s wages from each pay period.
How Can an Employee be Compensated?
To receive compensation from the Insurance Authority Program under the law, an employee must meet the minimum earnings in the highest-earning quarter ‘base period,’ which is the first four of the five most completed calendar years.
Eligible employees will be covered for up to twelve (12) weeks. An additional two (2) weeks are available for serious health condition resulting in incapacitation.
Note: Leave compensation will not run concurrently with the State or Federal Unemployment compensation.
A few things to keep in mind to have a successful rollout:
- Notify all affected employees of this new tax change
- Ensure that your organization’s payroll system is set up before running your 1st payroll of 2021. Immediately reach out to your payroll provider or the B&A team if you are unsure if your current payroll provider will have this ready.