State and local jurisdictions continue to adopt and expand programs that 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’s the latest information on PFL programs to help you know if your business is impacted.
17 PFL programs exist across the country.
As of September 1, 2024, fifteen states, the District of Columbia and one city have enacted/created a PFL program.
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Covered employers |
Jurisdictions with a PFL program (as of September 1, 2024) |
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Required for all employers |
California, Colorado, Connecticut, District of Columbia, Maine (1.1.25*),Maryland (7.1.25*), Massachusetts, Minnesota (1.1.26*), New Jersey, New York, Oregon, Rhode Island, Washington |
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Required for employers with 10 or more employees |
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Required for employers with 20 or more employees |
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Voluntary for all employers |
*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.
Absences covered by PFL 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. Check the laws in your jurisdiction for further details.
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Jurisdiction |
Absences covered by PFL program |
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California
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San Francisco
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Colorado
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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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Maine
(benefits start 5.1.26) |
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Maryland
(benefits start 7.1.26) |
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Massachusetts
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Minnesota
(benefits start 1.1.26) |
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New Hampshire
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New Jersey
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New York
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Until July 31, 2025, 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. Starting January 1, 2025, workers in New York who are pregnant may also have additional paid time off available to them for doctors’ appointments, procedures, or other types of prenatal care. This paid prenatal personal leave is part of New York’s paid sick leave program, which is separate from the PFL program. |
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Oregon
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Rhode Island
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Vermont
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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 that are not covered in the table above.
Many PFL programs require employer contributions.
Except for the programs in New Hampshire and Vermont, all of the other programs require employee contributions (via payroll deductions), but ten of these programs also require at least some employers to contribute. The following jurisdictions require employer contributions for PFL.
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Employers required to contribute to PFL program |
Jurisdiction |
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All |
District of Columbia, Minnesota |
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Employers with 10 or more employees |
Colorado, Delaware |
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Employers with 15 or more employees |
Maine, Maryland |
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Employers with 20 or more employees |
San Francisco |
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Employers with 25 or more employees |
Massachusetts, Oregon |
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Employers with 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. Employers in these states must still withhold and remit employee contributions.
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.
Most PFL programs offer job protection.
Currently, most PFL laws have express job-protection provisions. For example, in Colorado, Delaware, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island and Washington, employees returning from PFL must generally 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 only 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.
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.
PFL programs continue to evolve.
This isn’t the final word on PFL programs as states continue to refine their laws. For example, earlier this year Maryland enacted Senate Bill 485, which delayed implementation of the program further and clarified other aspects of the law.
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Maryland PFL as amended by Senate Bill 485 |
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Contributions by covered employees and employers with 15 or more employees will begin July 1, 2025. |
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Beginning July 1, 2026, employees will be entitled to receive wage-replacement benefits when they take leave for a covered reason. |
Senate Bill 485 also amended the definition of a “covered employee” to one who has worked at least 680 hours performing services in the state over the four most recently completed quarters for which reports have been required immediately preceding the date on which leave is to begin.
Employers should watch for developments closely and make adjustments to policies and procedures when necessary.
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.
Recommended reading
A Small Business Guide to Family & Medical Leave
The federal Family and Medical Leave Act (FMLA) requires covered employers to provide unpaid job-protected leave to eligible employees. Several states have enacted similar laws. We address employer coverage, the circumstances in which employees may take leave, and other family and medical leave basics for small business employers.