Effective October 1, 2024, housing authorities and transit districts will be required to participate in CT Paid Leave and CT Family and Medical Leave. Under existing law, the federal government, the state or a municipality, a local or regional board of education or a nonpublic elementary or secondary school, are not considered “employers” under this law, except to the extent they might participate with respect to certain employees due to collective bargaining. These exceptions remain, but the amendment defines “municipality” for the first time. This definition is narrower than suggested by prior guidance, with housing authorities and transit districts being left out of the “municipality” exception.
Starting October 1, 2024, a “municipality” is defined as “any metropolitan district, town, consolidated town and city, consolidated town and borough, city, borough, village, fire and sewer district, sewer district and each municipal organization having authority to levy and collect taxes.” Based on this definition, municipal housing authorities and transit districts will not be considered “municipalities” and will therefore be required to participate. There may be other municipal entities that are excluded from this definition as well – consult with labor counsel for an individualized assessment.
Broadly, these laws provide that qualified employees will be eligible for up to 12 weeks of replacement wages, payable up to a maximum of 95% for those earning less than or equal to 40 times the state minimum wage and capped at 60 times the state minimum wage for those earning more. Employees with a serious health condition resulting in incapacitation during pregnancy could get an additional 2 weeks paid leave. Although the law allows employers to seek approval for a private plan, for most employers, the paid leave benefits will be administered by the State’s Paid Leave Authority. Employers with even one employee must participate.
Compared to federal FMLA, employees are eligible for leave sooner. This law shortens the length of time an employee must work before becoming eligible from 12 months and 1,250 hours to 12 weeks with no minimum hour requirement. Additionally, the list of family members for whom an employee can take leave is very broad under the state law.
The employer may require or the employee may elect to use any sick or other accrued paid leave or paid time off while on approved leave, provided that an employee who is taking leave pursuant to CT FMLA must be permitted to retain at least two weeks of paid time off. If the employee receives full pay from the employer, the employee does not receive any CT Paid Leave during that time. Alternatively, the employee may receive partial pay from CT Paid Leave and “top off” the benefit using fractional days of paid time off.
Employers requiring employees to use employer-provided paid time off must allow those employees to retain at least 2 weeks of paid leave.
Employers that are newly covered by this law must plan for compliance. They must plan to:
- Begin deducting payroll contributions of 0.5% to fund the CT Paid Leave program or an approved private plan;
- Update personnel policies regarding family and medical leave, including policies that referenced only the federal FMLA;
- Post notices regarding these programs;
- Consider changes to short-term disability and long-term disability benefit programs;
- Train managers and Human Resources on how to administer requests for time off for covered reasons.
The labor and employment attorneys at Berchem Moses can help you navigate these changes. Please contact us to develop a plan of action for your employees.