Q&A: Understanding Connecticut PFML

Get answers to your questions on Connecticut Paid Family and Medical Leave (PFML). In this episode, we’ll answer the questions we’ve heard on private plans, administration, definitions, and more. Join Lincoln’s Kristin Hostetter, product lead for Connecticut Family Leave, and Alexa Greenberg, legal counsel, as we discuss the latest information we’ve received on this new program.

Resources mentioned in the episode:
Connecticut Paid Family Leave Website
Lincoln’s Connecticut Paid Family Leave Website


AM-LAAUC-AUD001   02/24  Z01   LCN-6418736-022224
© 2024 Lincoln National Corporation. All rights reserved.

Transcript

Karen Batson: 0:01

Hi again, everyone. This is Karen Batson marketing manager for leave and disability at Lincoln Financial Group. The fourth quarter always brings us a lot of information when it comes to various paid family and medical leave programs. And Connecticut is no exception. In this episode, I'm joined by my Lincoln partners Kristin Hostetter product lead for Connecticut PFML and Alexa Greenberg legal counsel. And we circle back on questions we received during our last quarter's webinar, understanding Connecticut. PFML. Let's see if we have answers now that we didn't then. Welcome to the Lincoln Absence Advisor, ladies. Thanks for joining me today.

Kristin Hostetter: 0:38

Thanks Karen.

Alexa Greenberg: 0:39

Thanks Karen. Great to be here.

Karen Batson: 0:41

So I'm excited to dig a little deeper into Connecticut's paid family medical leave program. We had a great webinar about a month ago, maybe a little longer now, and we walked through what we knew then. Um, we also got tons of questions from our audience, um, that I'm hoping we can really conquer today. However, I have to start with the first question, which is I'm guessing things have changed in a month and a half, or we've gotten more clarity. What are some of the big things that maybe have come up with Connecticut since our webinar that maybe we won't address in these questions?

Kristin Hostetter: 1:16

It's funny because I think we knew that going into the webinar, there was a chance that there would be a lot of changes coming from the state and sure enough we have a lot more information that we can share today that we didn't have before. So I think that's good news'cause I know we, we had several questions that we couldn't answer before, but the state has given us a lot more information on the private plan application process. And I know the vote was a hot topic, so we'll have more to share on that too.

Karen Batson: 1:44

Oh, awesome. Yeah, the private plan is probably our biggest section of questions actually today, but we won't start there. Let's, let's start with like leave reasons and definition of family member, because we got quite a few questions there. So one of the big areas in that category that w e got questions about not surprisingly was the affinity relationship. And what is it exactly. So what do we know about the definition today? And is there more information going to be coming about this definition in months to come?

Alexa Greenberg: 2:17

Yes. So the questions are certainly not surprising because this area of the Connecticut PFML law has been an interesting one. U m, as all of you know, from our webinar, the definition of a family member under the Connecticut PFML law includes individuals related to the employee by blood or affinity whose close association to the employee shows to be the equivalent of a family relationship. And since our webinar, speaking of updates the paid leave authority did release a draft document. They released it for public comment of certain key definitions, including this concept of affinity and close association. They, yes, they define it in the draft document as any with whom the employee has a significant personal bond that is, or is like a family relationship regardless of the biological or legal relationship. And this will certainly be very fact specific. And the particular circumstances of each situation will have to be assessed, but they also did provide some examples to help us with that assessment. And again, even though it is a draft document and i s subject to change before that final version is published, but we will be seeing and sharing with you that final guidance.

Karen Batson: 3:31

So you guys mentioned that there's a bunch of examples, in regards to the affinity relationship, can we, can we provide a sampling one or, or any insights that you mi ght've g otten from those examples?

Alexa Greenberg: 3:42

Absolutely. So there are a number of relationships that are described in the, in the draft document. Again, they are just draft examples. So there may be changes to this, but one example is a foster child who is in the same home in which the employee was a foster child for several years. And with whom the e mployee has maintained a sibling-like relationship despite having that biological or legal relationship. So that's just the first, one of the many that are outlined in the document. And again, these are not all inclusive, so there could be others and other very fact specific situations that would qualify under this category that are not listed here.

Kristin Hostetter: 4:26

I think too, one of the things that was helpful for me when we, when we see the examples is it's easy to identify in the examples that they provided, how that relationship was similar to a family member. U m, but it's, it's also easy to see how challenging that could be to try and categorize it in another way. So it is helpful to see them. C ause I think it gives us clarity and understanding, you know, what types of relationships may be covered o n what to look for in those relationships? I think it's interesting too, c ause it seems like a lot of the States, including Connecticut are really trying to expand that definition, which is good, b ut i t, it makes it a bit challenging to understand what family relationships are. So the examples from Connecticut I think will be really helpful.

Karen Batson: 5:10

No, definitely. Now, I mean some of the first questions that come to my mind, which we probably don't have answers for is will there have to be kind of proving of those relationships because it's so different than say a family member or anything like that. Is there any clarity in those regards?

Alexa Greenberg: 5:25

Exactly. That that is the big question. And at this point we just don't have those process questions, but we'll be waiting and working through that. Well, luckily we'll have more podcast episodes, so we'll dive into that later. So let's talk about family member. What is covered under a family member then like are siblings in the definition are in-laws in the definition, is it pretty typical to other programs that we've seen besides the affinity relationship? Sure. So yes and yes, siblings are included. And so are in laws, aside from the affinity relationship we discussed a family member is a spouse, uh, as I mentioned sibling, son or daughter, grandparent grandchild or parent These terms are all defined in the law, so for example, for parent, it does include parents in law.

Karen Batson: 6:14

Switching gears, and going to that big category of private plans, um, which I think is probably the most confusing topic because of that voting process. So we had a lot of questions in this, this part. So how is the voting process defined today and how is the state perfecting this process given that they probably got a lot of feedback after the initial draft of regulations?

Kristin Hostetter: 6:38

Yup. I think this is a good, a good topic for us today. And there has been a lot of feedback and I think the state has given us a lot more guidance, which will be helpful for employers. So part of the private plan application process is to conduct the vote. So when employers want to pursue a private plan, they'll need to follow the timelines for the vote, which includes providing employees a copy of their insurance declaration or their private plan declaration, their self-insurance declaration along with a plain language guide that gives some details of the program and they need to give that information to employees at least two weeks before they conduct the vote. And then the vote itself, there's some specifics around there. So it's only g oing t o be one question. So that's th e g ood news for employees is it's i t's simple. So the question will be, do you approve the company's private plan to provide benefits required by the Connecticut paid family and medical leave insurance act? And it's a yes or no question so that shouldn't be confusing for employees and hopefully the information that they will have received in advance, will give them what they need to understand what the program will look like.

Karen Batson: 7:50

Follow up question on that, you know, with employees getting kind of all this information and probably not as in tune with what's going on in regards to the leave landscape that we might be, I think of myself as an employee. Do you think it's going to benefit employers to be providing also education on what a PFML program is and why it's important and why it benefits them when they're providing kind of this overview of the private plan they're proposing?

Kristin Hostetter: 8:16

Yeah, I think so. And the state has actually done a really good job of creating a plain language guide that does a lot of that work. So it will give you an overview of the program and at a bare minimum that needs to be provided to employees and is intended to help educate them just to exactly, to your point, to help them understand what paid family and medical leave is. And obviously an employer wishing to pursue a private plan has to provide at least the minimum benefits of this state. So it should give them a good idea of, of what's coming.

Karen Batson: 8:49

So in our presentation, we said in regards to the voting process, all employees in Connecticut get a chance to vote, whether they have the private plan. Um, but we got comments kind of asking, does that mean only the employees working in Connecticut get the vote. Um, and I don't know if we have some clarification on that.

Kristin Hostetter: 9:08

We do. So good news. It is employees, just employees in Connecticut. So the requirement is that 50% plus one of the employees in Connecticut vote in favor of the plan. The caveat here is that if there are employees that are already on leave i n Connecticut, they're included in that count. So it's just Connecticut employees, but it's 50% plus one.

Karen Batson: 9:33

Now if I remember correctly in the initial, it was 50% plus one, then the private plan went to the authority for approval. Does it still go back to the employee for a second vote?

Kristin Hostetter: 9:43

No, there will not be two votes. It's just a single vote, which is good news for employers that will eliminate potential confusion, all that.

Karen Batson: 9:51

That and just some of the administrative component of that I would think.

Kristin Hostetter: 9:55

Yeah, I agree with you.

Karen Batson: 9:57

So for an employer who wants to go private, what is the deadline for setting up the surety bond? Um, can they then avoid paying into the state plan altogether?

Alexa Greenberg: 10:07

If the employer is applying on the basis of a self-insured plan, they do have to furnish that surety bond and they have to do so as part of the application process.

Karen Batson: 10:17

And is there a certain deadline to be doing that?

Alexa Greenberg: 10:19

There is no deadline. So when they apply, when they are submitting their application, they would attest to the fact that they have secured a surety bond.

Karen Batson: 10:30

So it's when they start the process that then they fall into their own timeline. Okay. So next question. Are we, I don't know if we're ready to answer it. So next question, will Lincoln be offering private plan options?

Kristin Hostetter: 10:43

This is the question of the day. Yes, Lincoln is preparing to, I know it, this is very exciting. We are prepared to offer both fully answered and an ASO offering to support Connecticut paid family and medical leave. So we've already taken some steps to, to be positioned to do so. And we've filed our declaration of insurance, which is one of the things that employers would need if they're looking to apply for a private plan that is fully insured. So we have approval on our declaration of insurance. So that's good news. And we are just working internally to finish up some work so that we are ready to offer quotes to our customers that are looking for that from us here in the next few days or weeks.

Karen Batson: 11:27

Fantastic. So, so listeners reach out to your Lincoln benefits. Professional. If you have questions. Now in a private plan, do employees have to apply directly through the state or would they go through Lincoln Financial if their private plan was with us?

Kristin Hostetter: 11:42

So that's a good question. And when an employee works for an employer that has a private plan. So we'll just assume in this situation that the private plan is through Lincoln. Those employees would apply for benefits directly through Lincoln. You know, if the employer was with the state plan, obviously they would go direct to this state. So depending upon who is administering the plan, that's where they'll apply for benefits.

Karen Batson: 12:07

So what does the application process entail?

Alexa Greenberg: 12:11

As Kristin mentioned, the state has provided some very good resources along the way. And their website actually just recently was updated. The CT paid leave.org website contains information on their registration and the application process. It includes step-by-step description and guides of the registration and the FAQ's and the requirements so I truly encourage any employer to browse that information. But once you register on the Connecticut paid leave authority portal, where you provide some basic information such as the name and address contact information, um, that will prompt an email notification from the authority for you to submit a private plan exemption application with all supporting documents. So with the application itself, you will provide the plan or the policy document and the plain language guide or the declaration during the interim period for self-insured, um, individuals plans as we mentioned, you will have to furnish the required surety bond. A number of attestations will have to be made such as that the private plan was approved by the majority vote through a process that complied with the voting requirements, as well as others, that you can also find in the private plan checklist that will be available on the Lincoln website.

Karen Batson: 13:29

Awesome.

Kristin Hostetter: 13:29

I will add to that for employees that are applying for benefits, you know, if their employer has a private plan through Lincoln, we will have more information on that next year as we gain more information from the state in terms of regulations and build out our processes for applying for benefits.

Karen Batson: 13:49

Well, to our listeners, we'll include a couple of links in our description from what, uh, Alexa just provided us great resources. So you'll have them at your fingertips. So let's jump to some other questions and other categories. Are the employee contributions set up automatically and ready to go for January 1st or do employers need to coordinate with their payroll team or providers to confirm? The follow- up question to that is will employers get any reporting from the state if leaves are approved and in amounts paid?

Kristin Hostetter: 14:19

Those are really good questions. So employers will need to coordinate with their payroll providers. Contributions aren't set up automatically. So it's a good time for employers to be visiting with their vendors about that and making sure that deductions begin. We don't have a lot of information just yet on the state in terms of what type of reporting and you know, what format of information employers will receive back. But I imagine that will come as the program continues to be built out and regulations are, are drafted in 2021. So certainly as we learn more, we can share that back with our employer partners.

Karen Batson: 14:56

Another thing we got a lot of questions on is basically isn't an elimination period required. And if so, do days take in count towards total days taken or are they excluded?

Alexa Greenberg: 15:08

Yeah. So the legislation did not contain language to address the elimination period. Um, that is really all we can say unless, unless, and until we hear otherwise from the paid leave authority.

Karen Batson: 15:20

So this is definitely a subject we'll get, we're looking for more information on and we'll have to circle back on that. We don't have an answer.

Alexa Greenberg: 15:26

We could potentially get more information and if we do not, um, then we go based on the plain language of the legislation and there will not be an elimination period.

Karen Batson: 15:36

So as we're nearing January 1st, do we have any guidance yet on how to notify employees about contributions beginning January 1st, 2021 and what it means for them?

Alexa Greenberg: 15:48

Yes. So there are actually pamphlets and posters and all kinds of tools now available on the Connecticut paid leave website that employers can use to communicate to their employees.

Karen Batson: 15:59

So at the same address that you mentioned with the private plans, the C T paid leave.org?

Alexa Greenberg: 16:03

Correct. Yes.

Karen Batson: 16:06

Um, in our webinar we also reviewed Connecticut's FMLA program and what's changing there. What are some of the key changes to point out to our listeners?

Alexa Greenberg: 16:14

Yes. So, um, the employee eligibility for Connecticut FMLA has changed to three months from 12 months and the minimum hours worked requirement has been removed. So that is a significant change. Um, the entitlement was changed to 12 weeks in a 12 month period, which is good news because it aligns better with the federal FMLA. And we also have that definition of a family member that has been expanded that we discussed earlier.

Karen Batson: 16:47

And these, so these changes FMLA is really to, I would say, mostly work well with the new PFML program, right?

Alexa Greenberg: 16:53

Yes, it was designed and it was intended to align and work well with the Connecticut PFML, but there will be some nuances to work through.

Karen Batson: 17:04

So can we walk through through how the PFML program coordinates with Connecticut's FMLA and maybe the federal FMLA as well?

Alexa Greenberg: 17:12

Absolutely. So it will be an interesting leave dynamic for some employers here in Connecticut. You could have three programs, Karen, as you mentioned, federal FMLA, Connecticut, FMLA, and Connecticut PFML that apply to your business and each one has different eligibility requirements. The simple scenario entails a n employee who is eligible for all three and takes them concurrently. That one is great. It works well. Of course we know there will be nuances an d e m ployees e ligible under only one or two of the programs and we are here to help employers work through of those more complex coordination scenarios.

Karen Batson: 17:52

So what about someone being able to stack between Connecticut PFML and Connecticut FMLA?

Alexa Greenberg: 17:58

Sure. I remember that was a question in our webinar and yes, we do know the intent was for these Connecticut programs, Connecticut FMLA and Connecticut PFML to run concurrently. However, the way the law was actually written has raised some questions and potentially opened doors to some stacking scenarios. And it is now up to the Connecticut paid leave authority on the Connecticut DOL to hopefully clarify all of this in the upcoming regulations.

Karen Batson: 18:28

So, I mean, we, we talked about quite a few categories of information and I think the next year there's probably going to be continuous information in regards to this program, what is the best way for our listeners to stay apprised of new information as the Connecticut PFML program is developed?

Kristin Hostetter: 18:44

That's a good question. And I think there's a lot of different ways our listeners can certainly come back to, to us here at Lincoln as a resource and also to directly to the state of Connecticut. So we will continue to communicate information out in a number of ways. There are significant updates. Of course, this podcast is a great way for us to share those. We also have our monthly compliance newsletter, which I know it will be giving a bit more detail about the private plan application process in that format, as well as our quarterly webinars. In fact our fourth quarter webinar coming up here later this month has a lot of detail about the private plan application process. Um, and we go into just a bit more than we can do on a podcast in that format. So I'd encourage our listeners to attend those webinars or, or get the recording at least. Um, so you can see the greater level of detail. And then of course the Connecticut paid leave authority has a website with a lot of helpful information and tools that employers can leverage. So I'd encourage our listeners to go there as well.

Karen Batson: 19:48

Awesome. Well, thank you both for joining us. I appreciate it. Walking through all these open questions that we had from our great audience on the webinar.

Kristin Hostetter: 19:56

Thanks so much, Karen, this has been good.

Alexa Greenberg: 19:58

Thank you!

Karen Batson: 19:58

To everyone listening. Thank you for joining us. We will continue to cover topics that help employers and their employees navigate through this new environment. So be sure to subscribe to Lincoln Absence Adviser on Apple, Spotify, or wherever you get your podcasts.

Disclosures: 20:14

The information contained in this podcast is for general use and is not a substitute for the advice of an attorney or your human resource professional. Lincoln Financial Group is the marketing name for Lincoln national corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.