Webinar Recap: Quarterly PFML Update: The latest from across the US

Paid Family and Medical Leave (PFML) legislation is ever-changing. It’s crucial for organizations to stay current with the latest rules and regulations to help ensure compliance and support their employees effectively. In a recent webinar, Guardian colleagues Garlande Patz, Head of Absence and Disability Practices, and Sue Murphy, Product Lead for Paid Leave Products, provided valuable insights and knowledge on the latest quarterly updates in state PFML laws. They also gave an overview on the NCOIL (National Council of Insurance Legislators) model, highlighting important changes and the impact on employers.

PFML: Supporting employees in times of need, but it varies by state

As a quick refresher, PFML is a form of paid protected leave for employees who need to temporarily step away from work to deal with challenges like illness, increased caregiving responsibilities, or welcoming a new child.

However, the US is one of only a few countries without a national paid leave policy, which places the responsibility on individual states. As a result, PFML administration and eligibility thresholds vary by state. Even in states that haven’t passed laws, employers may be looking for ways to extend equitable paid leave benefits to employees.

Ten states currently have mandated PFML programs in place, and four are in the process of implementing such programs. Many states are also working on allowing voluntary PFML programs and/or riders to disability policies. Navigating the administration of these programs and providing leave benefits to employees amidst a rapidly evolving legal landscape can be challenging.

State-specific updates: What you need to know

The speakers shared updates on leave programs, including both recent and upcoming changes. Here are some key points:

Oregon Family Leave Act (OFLA)

• Multiple changes are coming on 7/1/2024. Key changes include:

  • Leave year: The leave year now begins the Sunday prior to the first day of leave and runs for 52 weeks forward.

  • Leaves are no longer concurrent: Employees may take leave under OFLA or OR PFML, but not both at the same time.

  • Various changes to OFLA covered leave reasons

Oregon Paid Family & Medical Leave (OR PFML) aka PLO (Paid Leave Oregon)

• Leaves are no longer concurrent: Employees may take leave under OFLA or PLO but not both at the same time.

• Coordination of OR PFML with employer-provided paid time off (PTO) has changed.

New York

• The New York state budget has been finalized. Updates include:

  • Paid prenatal personal leave will be available beginning January 1, 2025.

  • COVID-19 Paid Sick Leave Law will be repealed as of July 31, 2025.

Maryland Paid Family & Medical Leave (MD PFML)

• The program effective date has changed from January 1, 2026 to July 1, 2026.

• The start date of contributions has changed from October 1, 2024 to July 1, 2025.

Maine Paid Family & Medical Leave (ME PFML)

• The program will become effective on May 1, 2026.

• Contributions will begin on January 1, 2025.

Minnesota Paid Family & Medical Leave (MN PFML)

• On May 24, MN PFML law was amended via state budget bill 5247. Regulations are to be drafted soon.

• The program will become effective on January 1, 2026.

• Contributions will also begin on January 1, 2026.

Delaware Paid Family & Medical Leave (DE PFML)

• Just this month, new regulations were proposed. Public comment will be accepted through July 1.

• From September 1 through December 1 of this year, opt-in/opt-out will be open for employers who wish to use a private plan to opt-out and for small groups to opt-in to Delaware Paid Leave.

• The program will become effective on January 1, 2026.

• Contributions will begin on January 1, 2025.

Other States

• Other legislative changes in states including Virginia, Kentucky, and South Carolina.

• Updates in voluntary PFML programs in states including New Hampshire and Vermont.

The NCOIL model: Helping employers develop leave policies

The National Council of Insurance Legislators (NCOIL) has adopted a model that helps provide a framework for states to leverage in recognizing paid family leave as new insurance class. This model is a particularly useful tool for employers who are working to develop leave policies that apply to all employees, regardless of their location, and regardless if the employees’ home states have passed mandatory PFML laws.

The speakers covered key points of the NCOIL model including:

• The model may be leveraged to bring benefit equity to multi-state employers.

• The model allows Paid Family Leave (PFL) to be a stand-alone insurance product or added as a rider to short-term disability policies.

• NCOIL-model policies will typically pay benefits in the following circumstances:

  • After the birth of a child or adoption of a child by an employee.

  • When a child is placed with an employee for foster care.

  • To help an employee care for a family member who has a serious health condition .

  • When an employee’s family member in the military is on active duty or has been called to active duty status.

Learn more

How can employers stay up-to-date with the latest PFML rules and regulations across the US? Check out the full webinar to explore each state's PFML changes and recent updates in greater detail.