Connecticut’s planned June 1, 2023 minimum wage increase to $15/hour increases the maximum benefit amount for Paid Family & Medical Leave (PFML) for leaves starting on or after June 1, 2023, as well. Here is what you need to know about this important change.
CT Paid Family & Medical Leave: Benefits and 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 June 1, 2023, is as follows:
*The base weekly earnings threshold is based on “40 times the CT minimum wage”, which equates to $600 starting on June 1, 2023. The benefit cap is based on “60 times the CT minimum wage” which comes out to $900 starting on June 1, 2023. The PFML Authority notes that it reserves the right to reduce benefits if revenue is insufficient.
CT PFML Claims: What The Changes Mean
All new claims that begin on or after June 1, 2023, will be determined based on the PFML calculation using the minimum wage in effect on June 1, 2023: $15.00/hour.
- The new base weekly earnings threshold is $600. So, the maximum weekly benefit for claimants who earn up to $600 is $570.
- Claimants earning more than $600/week receive an additional 60% of the base weekly earnings that exceed $600, capped at $900 (or 60 times the CT minimum wage).
Claims which begin prior to June 1, 2023, continue to be paid using the minimum wage formula in effect at start of claim – even if the leave extends past June 1, 2023:
- Claimants with base weekly earnings of $560 or less, receive 95% of their wage
- Using the $14/hour in the formula above, the wage threshold is $560, and the maximum weekly benefit 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).
Here are a few 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 required 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.
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 regulations 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 (principal office: Garden City, NY ), 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)