On June 25, 2019, Governor Ned Lamont signed into law Connecticut’s Paid Family and Medical Leave law (CTPFML). Below are some highlights from the new law updated with the most recent developments. Employers were required to begin collecting contributions from employees in January 2021. The new CTPFML program will expand the existing Connecticut Family and Medical Leave Act (CTFMLA), which currently is similar to the federal Family and Medical Leave Act (FMLA). Coinciding with the start of benefits in 2022, the CTPFML law amends current CTFMLA definitions for eligible employees, family members and serious health conditions, among other amendments.
- If you are contemplating offering a private plan in lieu of remitting deductions to the CT Paid Leave Authority, the plan you provide must provide the same level of benefits, eligibility and leave reasons as the CT plan and it must be approved initially by a majority vote of your eligible employees (full-time and part-time):
- You will need to apply and receive approval from the CT Paid Leave Authority before March 1, 2021 in order to be excused from remitting 1st Quarter 2021 contributions.
- If you apply later for a private plan, it will have to be on a prospective basis. Contributions to the paid leave trust stay in the trust and will not be returned. Contributions are pooled to support the entire benefit program and cannot be identified as coming from any single employer.
- Private plan exemption are approved for 3 years. If you want to change plans before the end of 3 years, you would need to hold another employee vote (see below) and reapply.
- If you are approved for a private plan but cancel it before January 1, 2022, you will be responsible to pay the Authority the years’ worth of contributions.
- When applying for a private plan, employers will be required to:
- Visit the link sent to you after you have registered as an employer with the CT Paid Leave Authority (this needed to be done by December 31, 2020) to upload required documents for the Authority to review your plan. These include: insurance company’s approved declaration of insurance (fully insured) or the self-insurance declaration, the plain language guide, and information regarding the voting process. If self-funded and the vote is approved, you must also obtain a surety bond (annually) in the amount of what your payroll withholdings would be if you were to take payroll deductions for the CT plan;
- Hold a vote of all its employees on whether they want a private plan or the CT Plan. The vote must pass by more than 50% in favor of a private plan to proceed. Notice and an explanation of the vote must be given at least 2 weeks prior to the vote;
- Log into your account at the Authority to validate your vote results;
- Please click the following link (click here) to find out more information about private plans and documents that are needed. If you are using a fully insured carrier to manager your leave program, they should also be able to assist you with your registration and with the required documents. This link also includes a list of fully insured carriers whose plans were approved by the Authority and have an available Declaration of Insurance;
- Diversified Group has solutions to assist you in finding a private plan product. We can obtain quotes and assist with the placement of a fully insured leave management option.
For More Information:
Visit the CT Paid Leave Authority website for informational materials, posters, payroll stuffers and guidance. Also, to view their FAQs, visit https://ctpaidleave.org/s/frequently-asked-questions?language=en_US.
Important: Benefits payments do not begin until January 1, 2022. The Authority has not issued final regulations. This leaves some areas of uncertainty, such as concurrent benefit tracking, method to measure eligibility for leave, increment of time allowed for intermittent leave, tracking job protection, and whether employee deductions are pre- or post-tax (all indications are post-tax, but the Authority has not issued a directive). For now, employers need to register with the Authority, discuss with their payroll vendor, begin deductions in January. The mechanics of the regulation will be forthcoming and Diversified will continue to track for new developments.
Please feel free to reach out to Diversified Group’s Compliance team with any questions:
Dave Follansbee, VP of Operations and Compliance
email@example.com or (860) 295-6531
Laura Williams, Business Development and Compliance Consultant
firstname.lastname@example.org or (860) 612-8644