Connecticut employers kicked off the new year with employee payroll deductions that will fund the state’s Paid Family and Medical Leave (PFML) program, slated to start paying benefits January 1, 2022. Registration for the program began in December, but employers can still enroll if they haven’t done so yet.
CT State PFML Employer Toolkit
The Connecticut Paid Family and Medical Leave Insurance Authority (Paid Leave Authority) has published an Employer Toolkit to help employers prepare for the PFML program, including instructions on how to register. The Toolkit also includes information regarding:
- Which employers are covered
- Employee eligibility
- Paid leave reasons
- Benefit rates
- Key dates
- Employer responsibilities
- Employee communications
- Submitting payments
- Exemption and private plan requirements
What employers should do now to comply with Connecticut’s Paid Family and Medical Leave Act
- Register. Employers that haven’t already registered for the PFML program should do so now. Employers offering a private plan to their employees can indicate that when they register.
- Make payroll deductions. CT PFML is funded entirely by employee contributions. Employers are responsible for withholding and submitting contributions to the CT Paid Leave Trust These deductions were required to start with the first pay cycle on or after January 1, 2021.
If an employer does not withhold enough funds from an employee’s pay or does not timely begin withholding, the CT Department of Labor is allowing a catch-up period of no longer than the first two quarters of 2021. During this period, employers cannot withhold more than one percent of an employee’s wages per paycheck.
- Communicate with employees. Employers should inform eligible employees about the CT PFML program and let them know to expect deductions from their pay. The Employer Toolkit includes links to download several resources that employers can share with their employees, including an employee fact sheet, an informational card, and a poster. Additional information for both employees and employers can be found at ctpaidleave.org.
- Decide whether to offer a private plan. In addition to the private plan guidance found in the Employer Toolkit, the Paid Leave Authority has published Private Plan Policy & Procedures to assist employers in developing a private plan and applying for approval. Remember that the CT Paid Leave Authority cannot approve an employer’s proposed private plan unless it has been approved by a majority vote of the employer’s employees. Employers will need to think strategically about whether to offer plan benefits in excess of the statutory minimums and whether “campaigning” in support of a proposed private plan may be necessary to secure or enhance worker support.
What ReedGroup is doing
ReedGroup continues to offer compliant paid family and medical leave solutions and develop additional products and services as PFML becomes more prevalent. ReedGroup is monitoring Connecticut PFML developments and will share updates as they become available. Sign up for our blog and webinar email alerts to stay in the loop.
If you’re looking for assistance managing claims or to ensure compliance across your organization, ReedGroup has solutions for you. Check out our offerings here.
Information provided on this blog is intended for general educational use. It is not intended to provide legal advice. ReedGroup does not provide legal services. Consult an attorney for legal advice on this or any other topic.