NYC Grants Paid Family Leave, Extended Parental Leave; Here’s Who May Get $3,000 Lump Sum Bonus

In the midst of a hiring freeze, NYC Mayor Eric Adams’ administration is facing challenges retaining employees.

However, City Hall has recently implemented measures to support non-union employers, including paid family leave and extended parental leave. Additionally, employees will receive retroactive raises and a lump sum bonus of $3,000.

These employees, primarily those in management positions, will now receive up to 12 weeks of paid time off to support a sick family member. Additionally, the duration of compensated leave for new parents will be increased from six weeks to 12.

Details of the Friday announcement on leave were shared in advance with POLITICO, revealing that the new benefits and pay will be extended to over 10,000 city workers.

A significant portion of the city’s workforce, which exceeds 300,000 individuals, is part of labor unions. These employees enjoy the benefits of paid family leave and parental leave, which are negotiated through collective bargaining.

“Expanding parental leave for city workers and paid leave for those with a sick family member are crucial changes to retain the talent that drives our city’s progress. These measures are not only the right things to do, but they also demonstrate our administration’s commitment to supporting the average working-class family in this city,” stated Adams.

The salary increases were not mentioned in City Hall’s press release. However, the agreement was announced through a Mayoral Personnel Order, which was made available on the website of the New York City Managerial Employees Association, an organization that represents non-union employees.

In addition to a lump sum payment of $3,000, non-union workers’ salaries will increase by 15.25 percent over the course of five years. The announcement outlines a series of wage increases, beginning with a 3 percent raise in May 2021 and continuing with a 3.25 percent increase the following year.

Agency heads also have the authority to grant employees extra pay raises, up to 1.43 percent of the managerial pay budget. The raises align with the established pattern for unionized employees, as determined through collective bargaining.

The Adams administration has successfully negotiated labor contracts with 93 percent of the city workforce since assuming office in 2022. According to City Hall spokesperson Kate Smart, the raises will cost $2.1 billion through fiscal year 2028.

However, it is worth noting that the funding for these raises will come from money already in reserve funds. According to Smart, the new parental leave policy change will have an immediate effect, with Adams signing the order. This change is expected to incur an annual cost of $2.5 million for the city.

Family leave will be funded through employee payroll deductions of approximately $13 per paycheck, and it is expected to take effect in approximately 90 days.

Benefits for non-unionized workers in this area were significantly behind those of their fellow city workers. It is worth noting that since 2018, state law in New York has granted almost all private employees up to 12 weeks of paid family leave.

However, the city had not previously opted in for managerial employees, but they have now made the decision to do so.

NYC Implements New Grants, Lump Sum Bonus

Darrell L. Sims from the Managerial Employees Association recently highlighted the worrying situation that non-unionized workers face in an article in Labor Press. Despite the growing inflation and the increasing cost of living, these workers have not received any pattern raises since October 2019.

An anonymous city worker, who preferred to remain unidentified, expressed support for the new leave policy, stating that it will facilitate the balancing of work and family planning for city employees. They mentioned that the announcement arrives during a period of decreased employee morale, with individuals beginning to sense a sense of stagnation.

In October 2023, Adams decided to implement a hiring freeze in order to address budget constraints and cut costs. However, it should be noted that hiring had already been slowing down by that time.

Meanwhile, the city has seen a significant decrease in its workforce, with numerous employees leaving their well-paying office positions in search of higher salaries and more accommodating remote work options.

In order to achieve this goal, City Hall is clearly presenting this as a policy aimed at retaining employees.

The pay increase follows Adams’ presentation of a preliminary budget last month, which painted a much brighter financial outlook than he had previously anticipated. The recent reversal has brought attention to both Adams’ budget cuts and new spending, raising questions about their impact.