New York Paid Family Leave for restaurant employers (2026 rates)

New York's Paid Family Leave program lets workers take time to bond with a new child, care for a seriously ill relative or help when a family member is deployed, and receive part of their pay while away. For a restaurant owner the law has an unusual feature: the cost falls on the employee through payroll deductions, not on the employer. You still have duties, such as carrying a policy, deducting the right amount and holding a job open. Here are the 2026 numbers from the state and how to plan for an absence. Rates are reset each year, so check paidfamilyleave.ny.gov before running payroll.

What is the 2026 employee contribution?

For 2026 the employee contribution is 0.432 percent of gross wages, with an annual maximum of $411.91 per employee. Because the figures are small, most workers notice only a small line on the pay stub, but over a payroll of thirty people they matter for your payroll setup.

Who pays: you or the employee?

Employers are not required to contribute, and the program is funded by employee payroll deductions. An employer may choose to cover the premium as a benefit, which some restaurants do to compete for staff. Deductions come from after-tax wages, and bonuses and commissions count as wages. Employers cannot collect more than the annual maximum or deduct retroactively. Get these details right in payroll, because over-collecting is an error you may need to refund.

What does a worker receive?

The maximum weekly benefit for 2026 is $1,228.53. Benefits are a share of the employee's average weekly wage, up to that maximum. For a server who earns tips, benefits are based on wages that were reported, so accurate payroll records matter. Workers are entitled to return to the same or a comparable job, so you cannot treat leave as a reason to let someone go.

What must you provide?

Most employers must carry Paid Family Leave coverage through an insurance carrier or the state fund, called NYSIF, as part of their disability benefits policy. Check with your broker that your coverage includes it and that your payroll provider is deducting the right amount. Give new employees a written notice, as the state requires, and post any required notices. If a worker asks for leave, give them the forms promptly and follow the carrier's process.

How do you plan around a leave?

• Cross-train cooks and servers on more than one station.
• Keep a list of former staff and reliable part-timers.
• Write prep lists and recipe cards.
• Talk to the employee early about dates and return.
• Do not retaliate or change duties unfairly.
• Ask your payroll provider and carrier to review your process once a year.

How does it fit with other New York rules?

New York also has paid sick leave and paid prenatal leave, covered in a separate guide. In New York City, Fair Workweek rules apply to some fast food employers. Your wage rates must also meet the state minimum, including the tipped cash wage rules for food service workers, which the state labor department publishes. Keep a calendar of all of these.

What mistakes do owners make?

Deducting the old rate after January 1, forgetting to include bonuses, not carrying the coverage or failing to hold the job open. Another is treating a request as informal. Anything about leave belongs in writing the same day.

Should you pay the premium for your team?

It costs little per employee and can improve loyalty. Run the numbers with your accountant, and decide whether to pay it for everyone or only for staff after a certain number of months. If you do, tell your team plainly and keep to it.

How should a payroll error be corrected?

If you deducted the wrong amount, tell the employee, fix it in the next pay period and keep a record of the correction. Employers cannot collect more than the annual maximum, so refund any excess promptly. Ask your payroll provider to update rates every January and to confirm in writing that the 2026 figures are loaded. A five-minute check in the first pay run of the year prevents months of small errors across a whole team.

Does a part-time or seasonal worker qualify?

Eligibility depends on the hours or days a worker has put in with you, as set out by the state. Do not assume that a part-time dishwasher or a seasonal server is excluded. Ask your carrier or the state program for the current eligibility rules, and keep clear time records for every employee, since those records decide whether a claim is approved.

Do you want a team you can keep?

Good benefits help, and so does a dining room full enough to give people shifts they want. Mosey is a food-first app where diners find places by dish, mood and neighborhood and rate what they actually ate. A restaurant can host a menu page, show its best-rated dishes and reply to guests, so the cooking that keeps your team proud also brings in guests.

More guides for your business:

• New York sales tax on restaurant meals, tips and service charges
• Why are restaurant costs rising in New York in 2026?
• Running a seasonal restaurant in the Finger Lakes or Hudson Valley

More in the US guides for food businesses.