29 June 2022

CT PFML: Minimum Wage Increases Effecting Max Benefits Starting July 1

CT PFML: Minimum Wage Increases Effecting Max Benefits Starting July 1

Connecticut’s statutory minimum wage increase to $14/hour on July 1, 2022, increases the maximum benefit amount for Paid Family & Medical Leave (PFML) for leaves starting on or after July 1,2022, as well.  Here is what you need to know about the change for employees leave after July 1, 2022.

CT Paid Family & Medical Leave Tied to the CT Minimum Wage

CT PFML is closely tied to the CT minimum wage as it uses the minimum wage as the basis for its wage threshold calculation and maximum benefit payments.  The formula for leaves starting on or after July 1, 2022, is as follows:

CT PFML Benefit Calculation
*The base weekly earnings threshold is based on “40 times the CT minimum wage”, which equates to $520/week between January and June 2022, and is anticipated to increase to $560 on July 1, 2022, and $600 on June 1, 2023.The benefit cap is based on “60 times the CT minimum wage” comes out to $780/week between January and June 2022, and is anticipated to increase to $840 on July 1, 2022, and $900 on June 1, 2023.  The PFML Authority notes that it reserves the right to reduce benefits if revenue is insufficient.

What This Means for CT PFML Claims

All new claims that begin on or after July 1, 2022, will be determined based on the PFML calculation using the minimum wage in effect on July 1, 2022: $14.00/hour. 

  • The new base weekly earnings threshold is $560.  Therefore, the maximum weekly benefit for claimants who earn up to $560 is $532. 
  • Claimants earning more than $560/week receive an additional 60% of the base weekly earnings that exceed $560, capped at $840 (or 60 times the CT minimum wage).

Claims which started prior to July 1, 2022, continue to be paid using the minimum wage formula in effect at start of claim – even if the leave extends past July 1, 2022:

  • Claimants with base weekly earnings of $520 or less, receive 95% of their wage
  • Using the $13/hour in the formula above, the wage threshold is $520, and the maximum weekly benefit is $494
  • Claimants earning more than $520/week receive an additional 60% of the base weekly earnings that exceed $520, capped at $780 (or 60 times the CT minimum wage).

Let’s look at a few examples*:

CT PFML Claims Examples

*These examples are for illustrative purposes only and are not intended to be a guarantee of coverage.
**When CT PFML benefits began

Planned Minimum Wage Increases

Connecticut’s Law Public Act 19-4 requires the minimum wage to grow 5 times over 5 years, from the then-rate of $10.10 in 2019 to:

$11.00/hour on October 1, 2019;

$12.00/hour on September 1, 2020;

$13.00/hour on August 1, 2021;

$14.00/hour on July 1, 2022; and

$15.00/hour on June 1, 2023.

It is planned to increase again to $15/hour on June 1, 2023.

 

 

This blog post is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. The information in this material is as of the blog post’s date stamp; it is based on our knowledge of the applicable statutes and regulation, and may change as the CT policy & procedures guide evolves or the Connecticut Paid Leave Authority issues guidance regarding CT PFML policy & procedures guidelines. 

*The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a
NY-domiciled carrier, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.

Connecticut Paid Family & Medical Leave is available in CT only and will be underwritten by:
ShelterPoint Life Insurance Company (a New York-domiciled carrier):
CT (SPL PFMLP 0122 CT)

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