A growing number of state and local jurisdictions provide wage replacement benefits to employees when they take time off from work for certain family or medical reasons. These paid family and medical leave (PFL) programs typically impose certain requirements on employers. Here are five key facts about PFL programs.
#1: There are currently 15 PFL programs across the country
As of January 1, 2023, thirteen states, the District of Columbia and one local jurisdiction have enacted/created a PFL program.
Jurisdictions with PFL program (January 1, 2023) | |||
All employers |
California, Colorado, Connecticut, District of Columbia, Maryland (10.1.23*), Massachusetts, New Jersey, New York, Oregon, Rhode Island, Washington |
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10 or more employees |
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20 or more employees |
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Voluntary |
*Contribution start date
With limited exceptions, covered employers must participate in the state/local PFL program, but employers may be allowed to provide coverage through a private insurance plan instead, as long as it meets all of the jurisdiction’s requirements. Check your state/local law for details.
#2: Absences covered differ by jurisdiction
The first wave of these programs tended to be limited to covering absences related to having a new child or caring for a family member with a serious health condition, but the reach of PFL programs has been expanding in recent years. Here are brief summaries of the absences covered under each program.
Jurisdiction |
Absences covered by PFL program |
California
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San Francisco |
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Colorado(benefits start 1.1.24) |
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Connecticut |
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Delaware(benefits start 1.1.26) |
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District of Columbia |
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Maryland(benefits start 1.1.25) |
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Massachusetts
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New Hampshire
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New Jersey |
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New York |
Paid family leave may also be available in some situations when an employee or their minor, dependent child is under an order of quarantine or isolation due to COVID-19. |
Oregon |
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Rhode Island |
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Vermont(benefits start 7.1.24 for private sector) |
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Washington
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Note: California, New Jersey, New York and Rhode Island also have separate Temporary Disability Insurance (TDI) programs that cover certain other situations which are not covered in the chart above.
Check the laws in your jurisdiction for details.
#3: Many PFL programs require employer contributions
With the exception of New Hampshire and Vermont, all the programs require employee contributions (via payroll deductions), but eight of these programs also require at least some employers to contribute. The following jurisdictions require employer contributions for PFL:
Covered employers |
Jurisdictions with contribution requirements |
All | District of Columbia |
10 or more employees | Delaware, Colorado |
15 or more employees | Maryland |
20 or more employees | San Francisco |
25 or more employees | Massachusetts, Oregon |
50 or more employees | Washington |
Seven states (California, Connecticut, New Hampshire, New Jersey, New York, Rhode Island, and Vermont) don’t require employers to make contributions for PFL at all. In these states, PFL is funded exclusively by employees, unless the employer elects to pay the employee’s contribution.
Note: New Hampshire’s PFL program is voluntary for both employers and employees. Therefore, employers aren’t required to contribute. However, the state provides a tax credit for employers that do make contributions to the program. Vermont’s PFL program is also voluntary for both employers and employees. The state hasn’t yet indicated whether there will be a tax credit for employers that make contributions to the program.
#4: Most PFL programs offer job protection
Currently, most PFL laws have express job-protection provisions. For example, in Colorado, Delaware, Maryland, Massachusetts, New York, Oregon, Rhode Island and Washington, employees returning from PFL must be reinstated to the position they held before the start of the leave, or to a comparable/equivalent position.
In other states, the PFL programs may merely provide a financial benefit rather than a leave entitlement with job protection. However, even in states without express job-protection provisions for PFL, employees may be protected under another federal, state or local law. For example, California's PFL law doesn't specifically offer job protection, but an employee's absence may be protected under the federal Family and Medical Leave Act, California Family Rights Act, or paid sick leave law.
Note: Even though New Hampshire’s program is voluntary, it requires employers with 50 or more employees to restore employees to the position they held prior to leave, or to an equivalent position. Vermont hasn’t yet indicated whether its program will do the same.
#5: Many PFL programs require employer notices
In addition to withholding and remitting employee contributions, making employer contributions (if applicable), and reinstating employees after PFL (where applicable), the PFL laws also typically require employers to provide employees with notices about their rights and/or post a notice in the workplace. For example, Massachusetts requires employers to:
- Provide a notice to employees;
- Display a notice in the workplace; and
- Provide new contribution rate sheets to employees at least 30 days prior to annual changes.
Check your state/local law for details.
Conclusion
If you have employees in any of the jurisdictions covered above, understand your rights and obligations under the law and train supervisors on how to respond to leave requests. The PFL trend is expected to continue, so employers in other jurisdictions should watch for developments as well.