Quarterly compliance updates – June 2023

With the surge of legislative changes over the past few months, it can be hard to keep up! Below is a summary of the latest regulatory news and information impacting employee leave.

Newly mandated state paid family and medical leave program:

Minnesota

Minnesota mandates Paid Family and Medical Leave (PFML)

In May, Minnesota enacted a bill establishing a PFML program for Minnesota workers to receive up to 90% wage replacement when an employee is unable to work due to their own serious health condition, a qualifying exigency, safety leave, family care, bonding, or medical care related to pregnancy. Benefits for MN’s program become available in January of 2026.

Employees may take up to 12 weeks for their own medical leave, 12 weeks for bonding, safety leave, family care, or qualifying exigency. The total combined maximum benefit is 20 weeks in a single benefit year.

Administration of the program will be done by the state or by private plan exemption. Employers wishing to pursue a private plan must receive approval from the commissioner.

Guardian will work closely with the state through our trade association partners over the coming months as rulemaking begins.

Changes to existing state disability and paid family leave programs

New York

New York Disability Benefits Law (DBL) will align better with Paid Family Leave (PFL) effective January 1, 2024

NY 30758 2022 clarifies DBL benefits regulations and claim processes, conforms regulations to the statute, and aligns section of the PFL program.

Most notably, NY 30758 2022 allows pregnant employees to be eligible for DBL benefits up to four weeks prior to their estimated due date, and for six weeks after giving birth, or eight weeks if the employee delivered via caesarian section or has a pregnancy related disability.

These changes to DBL legislation do not impact employees’ ability to choose to take PFL (because of the higher income replacement) over DBL.

This bill also changes the requirements for denial of a claim, clarifies the notice and proof of disability requirements, and introduces alternate methods for filing a claim.

Guardian will administer NY DBL for its employer customers in accordance with the new legislation when it becomes effective January 1, 2024.

Washington

Washington state amends their PFML program

Substitute Senate Bill 5586, effective January 1, 2024, amends Washington State’s PFML rules to allow any “interested party” access to leave information held by the Employment Security Department for the purpose of administering leaves or benefits under employer policies.

Interested parties may include:

• the employee;

• the employee’s current employer

• the current employer’s third-party administrator

Accessible leave information may include:

• type of leave being taken

• requested duration of leave including the approved dates of

• whether the employee was approved for benefits and was paid benefits for any given week

There is no new action required by employers with Washington employees in light of this change.

Developments with implementing paid family medical leave laws

Colorado

New Colorado bill changes PFML program benefit calculations

The new legislation, CO S 46, changes the earnings calculation used to determine employee PFML benefits. Previously, the PFML limited earnings to only those “from the job or jobs from which the individual is taking paid family and medical leave.”

Maryland

Amendments to the Maryland PFML Insurance Program

The Maryland PFML law passed in 2022, with contributions beginning in 2023. It was recently announced that the program has been delayed, and a few of the changes are highlighted below:

• The date benefits begin is delayed one year January 1, 2026.

• The contribution date is delayed one year, to October 1, 2024.

• The contribution rate is capped at 1.2% of employees’ wages up to the social security wage base.

• The initial contribution rate must be set on or before October 1, 2023.

• Regulations must be completed on or before January 1, 2024.

• Program funding must be split between employees and employers 50/50 (unless the employer chooses to pay a greater share).

Learn more here: https://mgaleg.maryland.gov/2023RS/bills/sb/sb0828E.pdf

Guardian is working closely with each state to include these changes as we develop our products.

We will continue to support employers understanding of the ever-changing PFML landscape. Subscribe to the blog via our home page to stay up to date!

New leaves recently passed

Virginia

Virginia Organ Donation Leave is effective July 1, 2023

VA S 1086 provides eligible employees unpaid, job-protected leave to serve as an organ or bone marrow donor:

• Up to 60-business days in any 12-month period to serve as an organ donor

• Up to 30 business days in any 12-month period to serve as a bone marrow donor

• The Virginia Organ Donation Leave shall not run concurrently with FMLA.

Guardian is preparing to administer this new leave for absence customers with employees working in Virginia.

Learn more about the Virginia Organ Donation Leave.

Voluntary PFML updates

During the first quarter of 2023, we have seen a wave of states contemplating and amending insurance code to establish paid family leave as a new class of insurance. Amending the insurance code allows employers to choose to offer paid family leave to their employees. These programs are not mandated.

Alabama

In May, the Alabama legislature authorized the issuance of paid family leave coverage, which may be provided for the following reasons:

• The care for a family member with a serious health condition

• The birth or adoption of a child

• The placement of a child with the employee for foster care

• Address a qualifying exigency as defined by the federal FMLA

• Care for a family service member injured in the line of duty

Arkansas

The Arkansas governor signed AR SB 111, now Act 84, in February. Family leave insurance in Arkansas allows insurance carriers to issue coverage to employers providing wage replacement for the following reasons:

• The birth or adoption of a child

• The placement of a foster child with the employee for foster care

• The care of a family member who has a serious health condition

• Circumstances arising because the employee’s family member, who is a service member, is on active duty or has been notified of an impending call or order to active duty

Florida

The Florida legislature authorized the issuance of paid family leave coverage in May. Coverage may be provided for the following reasons:

• The birth or adoption of a child

• The placement of a child with the employee for foster care

• The care of a family member who has a serious health condition

• Circumstances arising because the employee’s family member, who is a service member, is on active duty or has been notified of an impending call or order to active duty

Tennessee

In March, Tennessee amended the insurance code to allow insurance carriers the ability to issue family leave insurance for the following reasons:

• The birth or adoption of a child

• The placement of a child with the employee for foster care

• The care of a family member with a serious health condition

• Circumstances arising because the employee’s family member, who is a service member, is on active duty or has been notified of an impending call or order to active duty

Stay on top of changing legislation impacting your organization. Register for our blog.