Paid Family Leave Requirements: The Updated Landscape

Numerous states and local jurisdictions have adopted programs that provide wage replacement benefits to employees when they take time off from work for certain family or medical reasons. In many cases, the benefits are set at a percentage of the employee’s average weekly salary.

These paid family and medical leave (PFL) programs typically impose certain requirements on employers. In 2025, states and local jurisdictions made various changes to these programs. Here are eight updated facts about PFL programs to help you know if and how your business is impacted.

1. PFL is required in 13 states and two local jurisdictions.

As of the publication date above, thirteen states, the District of Columbia and one city have enacted or created a mandatory paid family leave program. The states and local jurisdictions where these programs are mandatory include:

Contributions to these programs have already begun in all of these locations, except for Maryland (January 1, 2027). Paid family leave benefits are also being provided in all of these locations, except Maine (May 1, 2026) and Maryland (no later than January 3, 2028).

Note: New Hampshire and Vermont have paid family programs, but participation is voluntary for employers.

2. State PFL requirements typically apply to all employers.

In the District of Columbia and 12 of the states with a mandatory PFL program, the PFL requirement applies to all employers.*

* While covered employers must generally participate in the state/local PFL program, 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. In New York, PFL coverage typically is added as a rider on an employer’s existing disability insurance policy with a carrier, unless the employer has been approved by the state to offer a self-insured PFL plan.

3. 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.

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.

4. 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.

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.

5. 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.

Notably, Washington expanded its job protections to employers with 25 or more employees effective January 1, 2026. Previously, the job protections applied to employers with 50 or more employees. The job protections will be further expanded to employers with 15 or more employees in 2027 and to employers with 8 or more employees in 2028.

Only a few state PFL programs provide a financial benefit without 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. New Jersey and other states have similar leave laws with job protections.

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.

* New Jersey has amended its paid family leave law, effective on or about July 17, 2026. The amendment added language indicating that employees are entitled to be restored to the position held when the leave commenced or to an equivalent position.  Based on other changes, it is unclear whether the legislature intended to extend job protections to paid family leave in the state. New Jersey employers may want to consult legal counsel to discuss the changes. 

6. 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, Minnesota’s law requires employers to issue a PFL notice to each employee no more than 30 days from the beginning date of the employee's employment (for existing employees, the notice was required to be provided by December 1, 2025). The notice must be provided in the primary language of the employee and include certain elements.

In Minnesota, employers must also obtain a written or electronic acknowledgment of receipt of the information, or a signed statement indicating the employee's refusal to sign such acknowledgment. The notice must also be displayed in the workplace in English and any language spoken by five or more employees.

Check your state/local law for details in your area.

7. Rules address supplementing and coordinating PFL

Some of the laws, or the regulations implementing those statutes, include rules on supplementing and coordinating PFL with other benefits.

For example, Delaware released regulations in late 2025 that expressly prohibit employers from requiring a covered individual to use any earned but unused paid time off before accessing paid PFL benefits.

However, upon agreement between an employee and their employer, an employee in Delaware may use their paid time off to supplement their wages (up to 100 percent of a covered individual's average weekly wage). Any agreement to do so in Delaware must be in writing and be signed and retained by the employee and their employer.

Additionally, under Delaware’s revised regulations, if the PFL also qualifies for benefits from an employer-provided short-term disability or long-term disability policy, the employer may count both the wage replacement amount and the duration of the PFL against the benefit amounts and leave duration provided under the employer-provided short-term or long-term disability policy. The employer must provide all employees with written notice of the intention to do so.

In Massachusetts, the law requires employers to provide employees on PFL with the option of supplementing their weekly PFL benefit with their accrued paid time off, up to the employee’s average weekly wage. The requirement to offer the option also applies to private PFL plans in Massachusetts.

In 2025, the U.S. Department of Labor issued an opinion letter indicating that employers are prohibited from requiring employees to substitute paid time off when they are on leave under the federal Family and Medical Leave Act (FMLA) if they are receiving state or local PFL benefits. The federal FMLA applies to employers with 50 or more employees.

Check your state and local rules for details on supplementing and coordinating benefits and consult legal counsel with any questions.

8. PFL programs continue to evolve.

This isn’t the final word on paid family and medical leave programs as states continue to refine their laws. Employers should watch for developments closely and adjust 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.

Note: In 2025, the Internal Revenue Service released tax guidance on state PFLprograms. Employers operating in states with PFL laws should carefully review the guidance with their legal and/or tax advisors. Additionally, enacted in 2025, H.R. 1 (the One Big Beautiful Bill Act) included provisions related to the federal PFL employer tax credit.

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