N.Y.: Two bills could impact HR policies and procedures

Recently, the New York state Legislature began its 2025 session, and with it came two newly introduced bills—A.892 and A.3529—which, if passed, would bring notable changes to employment policies across the state. These bills would expand employee benefits, including mandatory paid vacation and bereavement leave under New York state’s Paid Family Leave program.

While these proposals would enhance workers’ rights, they also have potential implications for businesses, including those in the property/casualty insurance industry. Independent insurance agents should be aware of how these legislative changes could affect their clients and their own business operations.

A.892: Mandatory paid vacation

A.892, introduced last month, would amend the New York Labor Law to require employers to provide paid vacation time to eligible employees based on their length of employment.

Some of the key provisions of this bill include:

• Paid vacation entitlement—employees who have worked one full year would be entitled to up to two weeks of paid vacation. After three full years, employees would receive up to three weeks of paid vacation. After five full years, employees would receive up to four weeks of paid vacation.
• Eligibility—employees who work 20 hours or more per week would qualify for paid vacation under this bill.
• Employer flexibility—employers could offer more than the required vacation time or a paid leave policy that provides additional benefits to employees. Employers would have the option to provide the full vacation allotment at the start of the calendar year. However, they would not be permitted to then reduce or revoke it later based on the number of hours actually worked by an employee during the calendar year.
• Employee protections—under this bill, employers would be prohibited from penalizing employees for using their vacation time or intimidating them into not using it. Employers would be allowed to set reasonable policies for vacation requests but would not be able to require more than four weeks’ advance notice of use of vacation time.
• Vacation scheduling—paid vacation would be granted in consecutive days. However, employees entitled to more than one week of paid vacation time would be permitted to take such time in nonconsecutive weeks if specifically requested. Employers would not be able to require employees to split vacation into nonconsecutive weeks.
• No work during vacation—employers would be prohibited from requiring employees to work or communicate about work while on vacation.
• Option to forgo vacation for higher pay—employees, with employer consent, would be allowed to opt-out of vacation in exchange for double their regular wages for the equivalent vacation period. This payout must be made before the end of the employment year.

If passed, this bill would take effect immediately.

A.3529: Adding bereavement to PFL benefits

A.3529, introduced on Jan. 28, 2025, would amend the Workers’ Compensation Law, to allow for bereavement as an eligibility category for PFL benefits. Currently, PFL only covers caregiving for a sick family member, bonding with a newborn or a child recently placed through adoption or foster care, and military exigencies arising out of an employee’s close family member being on, or notified of an impending call or order to, active duty in the armed forces of the United States.

This bill would expand the program to include leave following the death of a family member.

Some of the key provisions of this bill include:

• Employees would be eligible to take paid leave for bereavement under the same structure as existing PFL benefits.
• Employers would be required to accept a death certificate as proof of eligibility.
• The change would apply to all PFL policies issued, renewed, modified, altered or amended on or after Jan. 1, 2027.

This bill acknowledges the emotional and logistical challenges employees face after losing a loved one, giving them financial support and job protection while they grieve.

How A.892 and A.3529 could impact businesses and the insurance market

If passed, these bills could have widespread effects on businesses—particularly small- and mid-sized enterprises that would need to budget for increased leave benefits. This could have several key implications for the p/c insurance industry including the following:

Increased employment costs for businesses—Mandatory paid vacation and bereavement leave would increase payroll expenses for many businesses. Employers also would need to purchase additional employment practices liability insurance to cover risks related to compliance with these new laws.

More EPLI claims & policy adjustments—With new legal requirements, there could be an increase in disputes related to denied leave, retaliation claims, and mismanagement of benefits. EPLI policies may need revised terms, increased premiums, or expanded coverage options to account for these risks.

Potential changes to PFL policies—Insurance carriers providing PFL coverage would need to adjust underwriting and pricing to reflect the expanded eligibility for bereavement leave. This may result in higher premiums for employers offering PFL coverage. Employees may be impacted by this more than employers, since while employers are required to facilitate PFL deductions and ensure coverage is in place, it is mostly employees who fund New York state PFL benefits through small payroll deductions.

Administrative challenges for businesses—Managing vacation requests and bereavement leave could create administrative burdens for employers. Insurance agents working with business clients may need to recommend human resources compliance tools or insurance solutions to help mitigate these challenges.

Practical tips for agents

As an independent insurance agent, staying ahead of these legislative changes is critical. Here’s how you can prepare and help your clients for if these bills become laws:

Stay Informed on legislative developments—These bills are still in the legislative process and could undergo changes before becoming law. Keep track of updates and be ready to explain them to clients. PIA will continue to be a resource as we track this legislation’s status.

Educate your commercial clients—Many business owners may not be aware of these proposed changes or their potential impact. Schedule meetings or send correspondence to inform them about compliance requirements and insurance solutions.

Review and update EPLI & PFL policies—Work with insurers to determine how these legislative changes might affect EPLI and PFL policies. Be proactive in reviewing and recommending updated coverage options to protect businesses from liability. And don’t forget, agencies may need updated coverage options as well!

Offer strategic risk management advice—Help clients navigate the operational challenges these bills may introduce. This could include advising them on HR best practices, scheduling strategies, and ensuring they have adequate insurance coverage in place.

Final thoughts

Legislation like A.892 and A.3529 represent a significant shift in employment law that could have ripple effects across industries, including insurance. While these changes aim to enhance worker protections, they also introduce new responsibilities and potential costs for businesses.

As an independent insurance agent, your role is to guide clients through these evolving regulations and ensure they have the right coverage to stay compliant and protected. By staying informed, providing proactive advice, and helping businesses adjust to these potential new mandates, you can position yourself as a valuable resource for your clients in an ever-changing insurance landscape.

Not to mention, as business owners yourselves, staying informed and compliant with new HR legislation isn’t just a legal requirement, but a smart business practice that helps protect your agencies, fosters a positive workplace, and builds trust with employees.

PIANY will continue to monitor both A.892 and A.3529 as they continue to move through the legislative process.

Get involved

If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:

• Participate in PIANY’s District Office Visit Program;
• Become a member of Agents Advocacy Coalition; and
• Watch your PIA Northeast publications and PIA Northeast’s social-media channels for important New York updates and share them with your followers.