A new year brings new leave program launches and updates. In this episode, we dive into questions we received on various state PFML or PFL programs during our last webinar, Preparing for 2021. Join Lincoln’s Marissa Mayfield and Kristin Hostetter, product leads for state leave programs, as they answer questions on PFML, Massachusetts, Connecticut, and New York programs in our last season 1 episode of Lincoln Absence Advisor.
Resources mentioned in the episode:
AM-LAAQA-AUD001 02/24 Z01 LCN-6420645-022224
©2024 Lincoln National Corporation. All rights reserved.
A new year brings new leave program launches and updates. In this episode, we dive into questions we received on various state PFML or PFL programs during our last webinar, Preparing for 2021. Join Lincoln’s Marissa Mayfield and Kristin Hostetter, product leads for state leave programs, as they answer questions on PFML, Massachusetts, Connecticut, and New York programs in our last season 1 episode of Lincoln Absence Advisor.
Resources mentioned in the episode:
AM-LAAQA-AUD001 02/24 Z01 LCN-6420645-022224
©2024 Lincoln National Corporation. All rights reserved.
Hi again, everyone. This is Karen Batson marketing manager for leave and disability at Lincoln Financial Group. In our last episode of season one, we are joined by Lincoln's Marissa Mayfield and Kristin Hostetter product leads for state leave programs to provide answers to the many questions we saw during our last webinar preparing for 2021. From overarching questions to state specific ones, we dive a little deeper into some of the changes coming next year. Welcome ladies. Thanks for joining me today.
Kristin Hostetter:Thanks so much, Karen.
Karen Batson:So we are ending the season on the Lincoln Absence Advisor podcast, and I think there is no better way to end the season then answering questions that we received for 2021 in regards to changes and launches and expectations. Um, so for our listeners, we actually just had a webinar on this topic and we received a plethora of questions that hopefully we can dig into today. But first Kristin and Marissa, how did you feel about the webinar?
Kristin Hostetter:I thought it went really well. This is always one of our favorite webinars to do because we're able to share the annual updates. And it's nice just to kind of close out the year with what to expect or 2021 in this case.
Karen Batson:Yeah we covered a lot of information for everybody and in a short timeframe now, did you guys find anything interesting or any patterns out of the questions that we received from the audience?
Marissa Mayfield:To me, it seems very fitting for where we are from this time of year. Everyone is typically trying to prepare for next year. So a lot of times there's questions, you know, from that perspective. And then with new programs also launching that's making it challenging as well. So I think the questions were spot on for what we would expect to see and COVID just adds a whole other layer there. So we're always trying to stay on our toes with, you know, being prepared.
Karen Batson:You guys don't have boring days for sure. Now for our listeners, in our webinar, what we do is we go state by state and we talk about what's happening in each of those States that have a leave program that might have changes or updates in 2021. And of course this meant that a lot of our questions were state specific, but in reviewing those questions and preparing for this show, there were some overarching themes or common questions that were at a higher level that I thought we'd start with. One topic that we got a lot of questions around was location, location of the employee, where they work, where they reside. So first question for you, ladies is if your company is based in one state, but the employee resides in a state with a PFML or PFL program, what are the employer's obligations? And to follow that up, how does that change with so many employees working remotely and creating a much more cross state workforce.
Marissa Mayfield:I'll start. And then certainly Kristen can add on, you know, for the most part, when it comes to the statutory programs, very consistent approach where States have designed programs based on where the employee is working and not necessarily where they reside. And so, um, that becomes very important for an employer to make sure that they have a firm handle and really can pinpoint exactly the way that they're classifying that employee from a work state standpoint. Now, some of those lineKs have definitely become blurred, especially in light of COVID and just the increase in remote, working in general. And so what that tends to look like for some employers is the work state, um, is really based on their, their residents. But again, it's based on the way that the employer is classifying them. And so it really comes back to the way that the employer has set them up in their system. Sometimes employers might refer to the taxes that are being taken and what state tax applies. I would say that that's a general rule of thumb, but in general, just to ensure that an employer remains compliant, it's important to make sure that they look at the way that they've classified that employee. And then if there's any question about, um, that particularly because of what's happening in this current environment, then that's typically a good place for them to engage their, their council or their advisor to be able to work through that in more detail.
Karen Batson:Would you add anything to that, Kristin?
Kristin Hostetter:No, I think Marissa nailed it. It's, you know, especially for employers that have employees in multiple States, this isn't a new topic. I think it's just becoming a lot more prevalent, you know, due to COVID as we see a lot of employers with, with folks working from home and more and more States introducing paid family and medical leave programs. So I think this is a topic that we'll, we'll continue to get questions about.
Karen Batson:Kind of in line with that theme in regards to more people working remotely. One of the other common questions that came up was, are there best practices on how to communicate or provide those required notices often, you know, they were posters hanging and stuff like that. Now that people are working from home, do we have any best practices that we could share?
Kristin Hostetter:I'll take that one. So I think this one is, it's a question that extends beyond just paid family and paid family and medical leave when you think about, you know, that whole suite of federal state and local labor posters that have to be posted, I think employers will want to look at their overall strategy and requirements under the various laws. Generally, though, if regulations require that posters be physically displayed, that still holds true. I think there could be some circumstances where an electronic posting could be acceptable, especially if all employees and all applicants have access to that. So I think this is another area where it will be important for employers to kind of look holistically at their poster, notice strategy and talk with their employment counsel in some cases.
Karen Batson:Now, another question that came up, if a company is planning on implementing their own paid leave program, say next year, or even the year after, how will this affect their compliance with various state programs and, you know, can employees have both?
Marissa Mayfield:Um, so a couple things come to mind when it comes to that particular question, first and foremost, it's important for an employer to look at all of the different States where they operate, where there is a paid family and medical leave program, some type of statutory program in place to make sure that they understand the specific expectations of that state program. There is certainly some nuance when it comes to the way that an employee would be able to, to receive benefits from multiple programs at the same time. So generally an employee can be covered under more than one program. It's just the coordination implications may vary from one program to the next, as far as whether that employee is able to collect from both programs at the same time. And there's some coordination event that occurs to ensure that they're not over-insured or not over compensated, or if there's a scenario where maybe the one program needs to sequence first and then the other one come thereafter. So there are definitely some differences by state program. It's very important that as they're working through all of the mechanics of implementing that program, that they also look at the individual expectations that each state program has so that they ensure that they have a holistic view of what those expectations will be, and then they can then relay them to their employees as they're rolling out that program.
Karen Batson:Now, what impact do these PFML programs have on small businesses specifically? I think we've had this come up a few times and can employers or employees opt out when part of a small business.
Kristin Hostetter:That's another good question. And again, it's, it's really going to vary on the particular program cause the various PFML programs apply to different size employers and a lot of them do apply to smaller employers. So in a lot of situations, the small business will have to comply with the PFML program. In some cases, you know, in situations where there may be like a sole proprietor. A lot of times those people are not necessarily included, but they can opt into the program. So as opposed to opting out, it's an opportunity for them to go ahead and pay in and participate in the PFML program. And then as far as opting out of state PFML programs, there's in many States and opportunity for employers of all sizes, really to, um, elect, to opt out and provide a private plan. So it's, it's not necessarily, you know, avoiding having to participate in the program, but allowing those employers that wish to, to pursue a program, that's run by another administrator, maybe an insurance carrier or TPA.
Marissa Mayfield:And Karen, what I would add to that is, um, a couple of things for the most part, as States are approaching their rollout of a new paid family and medical leave program. They're typically looking at how they can have as broad of coverage from a workers' population, their state or jurisdiction as they can. So for the most part, most of them do opt to allow a very broad base of employees to be covered even down to a very small number of employees within an employer's population. So that's one thing to keep in mind that, you know, for the most part, outside of maybe a couple nuances, you know, typically the state is looking to get as much coverage for their workers as possible. The other thing is that there are some States that do provide some financial advantage to smaller businesses. So Washington state is an example, Massachusetts, where there are additional financial incentives as you go smaller in size. Um, for some, it might mean that you don't have to contribute the employer portion, or maybe there's a, some type of grant that would be available. So there are some advantages from a small business standpoint that are also important to keep in mind as those particular businesses are assessing the obligations that they have.
Karen Batson:Now, you mentioned it Massachusetts. So not surprisingly, we got the most state specific questions around Massachusetts given that it's launching January 1st. Um, so yeah, so let's start there. So if an employee began leave before January 1st, 2021, would their benefit increase come January or would their benefit change in any way?
Marissa Mayfield:That's a great question. And I think a lot of employers and employees alike are trying to understand what it's going to look like for both those that are starting brand new leaves as we roll into 2021, as well as those that are essentially looking to continue on an existing leave as we go into 2021. So I would say very generally, because there are going to be some differences depending on whether it's the state administering the program or an insurance carrier. Um, but because mass PFML is just launching as of 1/1/21, you're going to have to establish that leave from a Massachusetts standpoint. So for the state, that's going to mean that that person has to apply for the Massachusetts benefit. Now there would be some coordination that would be occurring with whatever the current program that they're covered under whether that's short-term disability or some type of company paid program. There's a coordination that would be occurring with that. But in order to qualify and receive those Massachusetts benefits from the state, they're going to have to apply for those benefits formally. So that's the first thing to keep in mind and the benefit that would be payable to the extent that anything is payable, uh, since there are other benefits that are in play would be based on that state benefit, you know, as we're rolling into 2021. So whatever prior amount they were receiving probably is more so going to impact coordination, then the overall benefit from a Massachusetts standpoint. So it's important to keep in mind. And then from a carrier standpoint there, I'm sure there's going to be some differences where insurance carriers may work to establish a Massachusetts claim based on the information that they have, if they can or figure out how they will work through that coordination effort from their standpoint. But in general, those are the expectations that I would set related to that question.
Karen Batson:Now here's a two-parter For you for mass is someone able to supplement their claim with PTO through their employer to reach their regular weekly max. And if someone's weekly, max is 1450 and they are eligible for the 850 max, can they supplement with 600 worth of PTO time worked?
Marissa Mayfield:So this, this has become probably one of the hottest topics with Massachusetts paid family and medical leave is, is the whole topic around accrued leave. So PTO is just one type of accrued leave. There are many other types whether it's vacation or, you know, earned sick time, but essentially the state program, uh, included in the regulations that accrued leaves could not be taken and received at the same time as someone is receiving Massachusetts PFML benefits. So that top up does not currently exist from a state plan perspective. Now insurance carriers have greater flexibility to the extent that they would want to allow this. And this becomes more of a company by company decision. So to the extent that an insurance carrier would allow this, um, this could happen where they could be receiving the full Massachusetts benefit and then supplement that with some portion of accrued leave, that they would be utilizing to get them to that a hundred percent level. But that's only from an insurance carrier perspective to the extent that they allow that. But from a state plan perspective, that's not going to be allowed. So it's just going to be that Massachusetts benefit that they would qualify for, or they could use the accrued leave in lieu of the Massachusetts PFML benefit.
Karen Batson:So the next set of questions, it was actually really interesting because intermittent leave in regards to Massachusetts came up a lot. Everyone seems to be thinking about. So if someone is taking mass PFML leave intermittently, are they required to estimate how many hours per week they will be using when they file a claim? And if so, what happens when they need more than they estimated?
Marissa Mayfield:So this is a good question, and I'm sure that everyone at this point, especially, you know, we're about 30 days out, are really starting to dig into some of the additional details related to the program to understand, you know, what it's going to look like in practice. This is a very practical question, and I'm going to answer it very generally because, you know, again, there's, there could be some difference between expectations from the state plan standpoint versus a private plan administrator. So from a state perspective, they are, I believe expected to outline the expected frequency and duration for that intermittent leave so that would be, you know, generally an estimate of how much time is going to be needed and, and the frequency for that. And then how long that claim would last, that also would be required from a certification standpoint. If you're looking at a medical leave or some other type of leave, uh, care of a family member, as we get into later next year, where it's going to need to be certified from a provider based on those expectations of intermittent leave. So that would be outlined from a certification standpoint. And then from, you know, when we think about the timing of whether you would have to take additional action, if the time that's actually been estimated differs from what it is in practice, I think some of that is going to be, to be determined from a state plan perspective. We're not sure at this point how they would manage that outside of likely needing the employee to provide additional documentation potentially to substantiate that additional time. I imagine that insurance companies would be following a similar process because typically you're going to need documentation to really line up, to reflect the intermittent expectations from a claim standpoint.
Karen Batson:So continuing with this beam, you know, how is the 850 weekly max prorated? Is it by hour?
Marissa Mayfield:Oh my goodness. These are some hard questions, Karen. No, that's fine! We want to bring some humor to this top because it's certainly complicated. So let me take it a slightly different way to answer the question. First and foremost, you have to get to the average weekly wage of the employee to ultimately determine what the benefit is that they would qualify for from a weekly standpoint. So the 850 is if someone is, yo u k n ow, at a wage level where they have hit the maximum, but if you've got someone that, you know, when you take into account their average weekly wage, an d t hat two tiered calculation of benefits, they en ded u p with say a$600 per week benefit. The proration becomes looking at the time taken in relationship to their average wo rk w e ek. So if you've got someone that's got an average wo rk w e ek o f 30 hours a week, and that's based on the state's calculation of that, and that's wh ere w hat's been calculated a 30 hour per week average working schedule. And let's say they take six hours of intermittent leave in that particular week. Then it becomes a one-fifth benefit taking the ratio of the six hours of intermittent time taken to their normal average working week. So that could break down in any number of calculations, depending on the time taken a 30 minutes has taken to a 30 hour work week. Then that becomes a calculation to determine the proportion of that$600 weekly benefit that's payable. So there that's the most important thing to think about the ratio of time taken to their average work week. And that ratio was applied then to the weekly benefit that they've been calculated for from the program stamps.
Karen Batson:Okay. One more intermittent question in regards to the waiting period, how is the seven days handled when taking intermittent leave?
Marissa Mayfield:Okay. So this is also a good question because there is some difference when you think about it from a intermittent versus a continuous perspective. Now it's still a seven calendar day period of time. So let's just say someone starts their first day of leave on, you know, make it very easy January 1st. And we apply seven calendar days to that period. And so January 8th is the date that they would start to become eligible to receive payment for their claim. If they had taken that time continuously, then it would have been, uh, just looking at the overall time that was taken during that week. So if their average work week is 30 hours, you know, using that from our previous example, then that's what time is counted against, uh, for that week, from an intermittent standpoint, however, let's say they only took five hours of intermittent time during that first week of their waiting period, then that five hours is what is counted against their overall entitlement bank. So it's important to keep in mind that while the seven days applies from the start of the claim or the start of the leave to when they would be eligible to start receiving payment, the actual impact from a timing standpoint is going to depend on the amount of time that was taken during that week. And this is just based on the most recent guidance that we have received from the state. So a disclaimer, if any of that changes in the future, then certainly, you know, everyone would need to align with that. But that was, uh, what was shared with us from a state perspective.
Karen Batson:Thank you. So Kristin, let's put you in the hot seat, of course, the second popular state with the most questions, Connecticut with contributions to beginning January 1st, 2021. So do Connecticut employers need to register on the Connecticut site, um, even if they have a third party that handles their payroll and tax filing.
Kristin Hostetter:Yep. This is a good question. And I think it's a good opportunity for us to provide some clarity. So it is important for all employers, with employees in Connecticut to register on the paid leave authority website. And so for, for employers, that plan to utilize the state program, this is where they're going to provide information and prepare to to remit payroll deductions to the paid leave authority. And then for employers that are planning to pursue a private plan, this is also where they will fill out that application. So it is really important for all employers to register on that on the website and that registration is open now. So employers can head out there and take care of that step of the process now.
Karen Batson:And we'll add that link to the episode description so people can have it at the ready. Now, will Connecticut have a ceiling amount as to when to stop withholding PFML.
Kristin Hostetter:Yep. They sure will. So, um, employee contributions in Connecticut are based on the social security wage cap and in 2021, that is$142,800. So the initial maximum employee contribution will be$714.
Karen Batson:For Connecticut, do you know if there is a deadline yet for submitting their self-insurance declaration and surety bond for provisional approval and is February 28, 2021, the deadline having everything Approved?
Kristin Hostetter:Yes. So this is a good question. And it's, it's one, I don't have a great answer for. Um, the date that we know for certain is, as you mentioned, February 28th, 2021, that is the date where everything needs to be approved for employers that wish to pursue a private plan kind of from the, from the get-go. What we don't know is, you know, what that process, that approval process from the state looks like and how much time they might need to actually go through those applications and approve them. So our guidance to employers as of now is to make sure that you apply early so that you do get that approval back from the state, by the 28th of February.
Karen Batson:Now, one more private plan question, cause that's where everyone's mind seems to be with these questions on Connecticut. How does an employer notify Connecticut about a private plan set up?
Kristin Hostetter:This is another good question. And it ties back to our first question on Connecticut about registration. So again, just a good reminder here for employers to register on the Connecticut website. Um, and this is where they'll also apply for a private plan. Um, so it's not as easy as just telling the state that, you know, a private plan is going to be set up, but there's an application process and there's several important steps for that, which we talked a bit about in the webinar. And I won't go into a lot of detail, but, you know, at the highest level, employers will need to have either a declaration of insurance or a self-insurance declaration, depending upon whether, you know, they're, they're looking at a fully insured private plan or a self-insured private plan, and then they'll need to supply that plain language guide, which the state has provided a template for. And they'll, you know, part of the application process will also be to share some information about the employee vote. Cause as, as everyone will remember, the state of Connecticut requires a 50% plus one vote of employees in favor of a private plan. So all of that information has to go into the application process and that all takes place on the website. So I know that was a long-winded answer, but that is kind of the, the key, the key points for informing the state about private plans.
Karen Batson:Well, we'll link to the webinar recording too. So listeners it's all chaptered out and you can skip right to where Kristen goes over this process in more detail and highlight some of the things she just mentioned. So one other state that we got a lot of questions on was New York. Um, so the first question is if an employee salary is higher than$75,408.84, when we are calculating the total premium owed, would we use that cap to determine the rate?
Marissa Mayfield:Yes, that's, that's fine to do that. Um, because you're not going to want to charge them the premium rate against a higher level of wages, because that will mean that they're exceeding the overall maximum for the year. So that's perfectly fine to do that.
Karen Batson:Now again, another New York question.For maximum employee contribution rate are employers required to notify employees of the amount increase?
Marissa Mayfield:So the amount of the contribution is not on the poster, notice that the state created. So, you know, I would say that the best practice is always to communicate any changes in contributions to ensure that employees are aware. And, you know, certainly because in the case of New York, those contributions did go up pretty considerably for this year. I think as a great best practice to do that. It's technically not on the poster notice, but I would highly recommend that employers do that.
Karen Batson:If you learned anything this year, communication is key for anything changing. So some parting questions for you, both, um, as the leave landscape changes, I know our listeners will have even more questions, um, from a Lincoln perspective, what's the best way for them to stay informed.
Kristin Hostetter:This is a good question. And I think the three of us are living this stuff every day. And so are many of our peers and partners at Lincoln. So, um, certainly this podcast is a good way to stay informed. We've provided in, in other formats links to the various state websites. Those are always great resources. And then we provide our monthly compliance updates through Lincoln Absence Advisor, and we have a lot of information on lfg.com. So I think there's a number of ways for our listeners to just stay close to these things and certainly reach out to us, to their Lincoln benefit professionals when they have questions.
Karen Batson:Now as repeat and our last guests on the Lincoln absence advisor podcast for season one, do you have any parting words?
Marissa Mayfield:I'll go first. So I think that this has been certainly a trying time for everyone this year for multiple reasons. Maybe this has nothing to do with the podcast, but it's for everyone to stay encouraged as they are working through all of the challenges that the ever-changing leave landscape is bringing. And certainly it's, Lincoln's ongoing commitment to continue to bring this type of content to all of you. Um, but we certainly feel the, the, the challenge and the pain that I think many have this year in particular, given all of the challenges and whatnot that came about, but, you know, look forward to what we're doing next year and how we will continue to keep everyone abreast of, um, you know, what's coming.
Kristin Hostetter:I would echo a lot of what Marissa said. It's been an interesting year and on a personal note, I've really enjoyed participating in the Lincoln Absence Advisor podcast because it keeps us connected together when you know, like so many of our listeners and their employees we're all working virtually and kind of lacking that face-to-face time. So it'll be interesting to just kind of see how this landscape changes next year and to continue to watch these programs evolve.
Karen Batson:Well, I thank you both for being repeat guests and continuing our conversation. I hope you'll be back in season two.
Kristin Hostetter:Thank you so much, Karen.
Marissa Mayfield:Thank you, Karen. Absolutely.
Karen Batson:As one of your hosts, I want to thank you for listening to our first season of Lincoln Absence Advisor. We've enjoyed the many conversations we've had so far and are excited to cover more in season two. If you enjoyed this season, let us know by rating us and subscribing on Apple, Spotify, or wherever you get your podcasts. And we hope you join us. Next year.
Disclosures: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.