The District of Columbia’s chief financial officer has announced that there is already sufficient funding in a program offering paid family leave benefits to eligible employees to expand it and to reduce the employer contribution rate. As a result of the announcement, the changes will be implemented as soon as July 1, 2022.
The Details:
Timing of the Changes:
The Department of Employment Services is determining how quickly it can implement the expansion of paid family leave and the reduction in the employer contribution rate. The soonest the changes could be implemented is July 1, 2022, but they may occur later.
More Weeks of Paid Leave Benefits:
Once the changes are implemented, eligible employees will be entitled to more weeks of paid family leave. They will be able to receive a maximum of:
- 12 workweeks (up from 8 workweeks) of paid parental leave benefits within a 52-workweek period for bonding associated with:
- 12 workweeks (up from 6 workweeks) of paid family leave benefits within a 52-workweek period to provide care or companionship to a family member with a serious health condition.
- 12 workweeks (up from 6 workweeks) of paid medical leave benefits within a 52-workweek period for their own serious health condition.
Eligible employees are entitled to up to two workweeks of paid leave benefits for prenatal medical care. This is the same amount as under current rules. Generally, employees will be eligible to receive no more than 12 weeks of paid family Leave benefits in a year, regardless of the number of qualifying events.
Employer Contribution Rate to Be Lowered:
Once the changes take effect, the employer contribution rate is expected to decrease from 0.62 percent to 0.26 percent. Note that The PFL tax rate will remain 0.62 percent until the DC Council approves a new tax rate and effective date. Once an official effective date is established the Department of Employment Services will release updated guidance for employers.
Next Steps:
- Monitor the Department of Employment Services website closely to determine when the changes will be implemented.
- Amend leave policies and forms to reflect the changes.
- Post an updated notice in the workplace.
- Ensure the program information you are required to provide at time of hire, annually, and when leave is requested reflects the changes.