Paid leave is a complicated topic in Connecticut. In 2011, the state enacted the Paid Sick Leave Law, the first statewide paid sick leave law in the country. The law provides paid sick leave for “service workers” — hourly and/or non-exempt workers ranging from bartenders to security guards.
Eight years later, the state passed the Connecticut Paid Leave Act, a law that provides income-replacement benefits for workers out on family or medical leave. Signed into law by Governor Ned Lamont in 2019, the program has provided more than $789 million in replaced wages.
In this article, we’ll be discussing the latter statute. But Connecticut employers should not disregard the former. Beginning January 1, 2025, the 2011 law will cover many more employers and employees, thanks to amendments passed in May 2024.
Who is eligible for Connecticut Paid Leave?
To be eligible for Connecticut Paid Leave, workers must:
- Have earned at least $2,325 in subject earnings during their highest earning quarter within the base period — the first four of the five most recently
- completed quarters.
- Be presently employed by an employer.
- Have been employed by an employer in the previous 12 weeks.
Connecticut’s website notes that an employee may be eligible for paid leave benefits based on the money they have earned at multiple employers.
The guidance notes that part-time, per diem, and seasonal workers may be eligible for Connecticut paid leave if they meet these requirements. Self-employed individuals and sole proprietors are also eligible if they enrolled in the Connecticut Paid Leave Program.
What wage replacement does Connecticut Paid Leave offer?
The benefits workers receive from Connecticut Paid Leave are calculated by:
- Looking at the first four of an employee’s five most recently completed quarters.
- Adding together the money earned while an employee resided in Connecticut in the two highest-earning quarters.
- Dividing that sum by 26.
Workers can earn no more than 60 times the state minimum wage. Employees cannot receive more than 100% of their normal earnings while on leave. But they can receive compensation from the program while receiving benefits like PTO or short-term disability from their employer. In this instance, Connecticut Paid Leave Benefits can be reduced so that total compensation does not exceed a worker’s regular earnings.
Employees may not, however, receive Connecticut Paid Leave compensation while receiving Unemployment Compensation, Worker’s Compensation, or any other state or federal wage replacement benefit. There is one exception to this rule, however: covered employees may receive compensation concurrently with compensation received from the victim compensation program administered by the Office of Victim Services within the Judicial Department. The total compensation received may not exceed the employee’s regular rate of compensation.
Does Connecticut Paid Leave require employer contributions?
Connecticut Paid Leave is funded by employee payroll deductions. There is no employer match, according to the program. Employee payroll contributions began Jan. 1, 2021. Employees contribute up to 0.5% of their wages in each paycheck. Employers are required to send these contributions quarterly to the Connecticut Paid Leave Authority.
Does Connecticut’s Paid Leave interact with other types of leave?
The state of Connecticut says that an employee can receive both CTPL benefits and employer-provided benefits. In guidance, the state notes that an employer may require or permit employees to use sick or other accrued paid leave or PTO while on leave. Employees must be able to retain, however, at least two weeks of paid time off.
If an employee receives employer-provided PTO equal to their regular pay during their entire leave, the employee will not receive any CT Paid Leave benefits. If the employee receives PTO for some of their leave, they will receive CT Paid Leave benefits for the remainder of the leave when they do not get the employer-provided benefits.
Employers should check the language of their short-term and long-term disability policies to see how they align with Connecticut Paid Leave. Generally, Connecticut says, these insurance policies require that employer- and state-provided paid leave benefits be used before an employee can qualify for benefits under insurance.
Employers may offer their own paid leave plan instead of participating in the public plan. But they must apply to the Connecticut Paid Leave Authority for an exemption.
Notably, Connecticut Paid Leave interacts closely with Connecticut Family and Medical Leave (CTFMLA). They are separate laws with a shared purpose: “to help eligible workers who need to take leave…to care for a loved one or for their own medical reasons.” While the CTFMLA provides employees with unpaid, job-protected leave, the Connecticut Paid Leave Act provides income replacement.
Does Connecticut Paid Leave offer job protection?
No. Connecticut Paid Leave provides no job protection. Workers can receive job protection for their leave under laws like the CTFMLA, the Family and Medical Leave Act, and the Americans with Disabilities Act.
What leave options does Connecticut Paid Leave provide employees?
Connecticut Paid Leave provides income replacement for workers taking several types of leave:
- Medical leave allows workers to recover from their own serious health condition.
- Bonding leave allows workers to take time off after the birth, adoption, or foster placement of a child.
- Caregiver leave allows workers to care for a family member with a serious health condition.
- Qualifying exigency leave allows workers to deal with issues arising from a spouse, parent, or child on federal active duty.
- Military caregiver leave allows workers to care for a family member injured while serving in the Armed Forces.
- Family violence leave allows workers to address issues that stem from family violence.
Workers can receive up to 12 weeks of income replacement benefits through Connecticut Paid Leave. Pregnant workers may receive an additional two weeks of funds if they need to attend prenatal appointments, if they experience pregnancy-related complications, or if they experience a non-pregnancy serious health condition during their pregnancy. Benefits for family violence leave are capped at 12 days.
What documents can employers expect to receive from employees wanting to take leave under Connecticut Paid Leave?
When employees make claims under Connecticut Paid Leave, employers will receive something called an Employment Verification Form. Employers must complete the form and verify the wage and hour information for the employee. Employers must submit the completed form to Aflac within 10 days of receiving it from the employee.
When does an employee need to give notice of their Connecticut Paid Leave?
In guidance, the state of Connecticut says that employees who plan to apply for Connecticut Paid Leave benefits must notify their employers of their plans to do so. The guidance does not specify when employees should provide this notice.
The guidance notes that employees who provide notice of their intent to collect benefits are not satisfying the notice requirements levied under job-protecting leave laws. “You will need to follow your employer’s policies regarding how to apply for job-protected leave,” the guidance says. “Most employers require you to apply for job-protected leave 30 days in advance for foreseeable events and as soon as practicable for unforeseen leave reasons.”
How can your HR team ensure they are compliant with Connecticut Paid Leave?
The state of Connecticut provides helpful information and many resources about Connecticut Paid Leave on its website. To enhance your compliance efforts, schedule a demo with AbsenceSoft. Our system is updated by our in-house experts to keep you compliant from day one.