More states than ever are requiring that employers offer paid family and medical leave (PFML) insurance to their employees. And now, as employers are increasingly hiring remote employees in various states, it's more critical than ever for them to understand the state-by-state PFML requirements and payroll implications for their business. Wondering if and how you’re impacted? Here’s a high-level overview of PFML and the state-level requirements and payroll considerations to keep in mind.
What is PFML?
Paid family and medical leave (PFML) is a state-mandated and -defined program. States with PFML mandates require employees and/or employers to contribute to a paid leave fund, which is allocated to employees who qualify for paid time off work for family or medical reasons. PFML usually includes two main components:
- Paid family leave which provides employees with paid time off for qualifying events, such as caring for a new child or sick family member.
- Paid medical leave which provides employees with paid time off for their own serious illness, injury or other qualifying event.
PFML is different from paid sick leave, which is 100% employer funded, usually earned/accrued and considered shorter term (for example, when you’re out with a cold). PFML is also different from Family Medical Leave (FML), which requires businesses with at least 50 employees to provide unpaid leave for family and medical leave reasons that are similar to PFML.
Which states require PFML?
Fourteen states, plus the Washington D.C., currently offer or will offer PFML. Included in this list are California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island and Washington.
Below is an overview of how each of these locations fund their PFML programs, as well as information on program status, name, limits and where to go for additional resources. Please note, the below information is accurate based on the publish date of this blog, but it’s always a good idea to double check any information that impacts compliance.
Also, just as PFML requirements, qualifications and benefits vary from state to state, each state also brands their program and its components by different names. For example, “family caregiver leave,” “family leave insurance,” “temporary disability insurance” and “short-term disability” are common PFML terms you may come across.
California
- Program name: California State Disability Insurance (SDI)
- Status: active
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.90% of wages (no max)
- Wage base limit: none
- Where to get more information: California’s Employment Development Department (EDD)
Colorado
- Program name: Family and Medical Leave Insurance Program (FAMLI)
- Employer contribution: 0.45% of wages ($758.70 max)
- Employee contribution: 0.45% of wages ($758.70 max)
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
Connecticut
- Program name: Connecticut Paid Leave (CTPL)
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.50% of wages ($843 max)
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
Delaware
- Program name: Paid Family and Medical Leave Insurance Program
- Status: effective Jan. 1, 2025 (contributions) and Jan. 1, 2026 (employee claims)
- Employer contribution: up to 0.80% of wages ($1,350.40 max, option to withhold half from employee)
- Employee contribution: up to half (0.40%) of employer contribution, if determined by employer
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
Hawaii
- Program name: Temporary Disability Insurance (TDI)
- Employer contribution: any insurance premium costs not covered by the employee’s contribution
- Employee contribution: 0.50% of wages ($357.55 max)
Maine
- Program name: Maine Paid Family and Medical Leave
- Status: Jan. 1, 2025 (contributions) and May. 1, 2026 (employee benefits available)
- Employer contribution: 1% of wages for 15 or more employees (option to withhold up to half from employee) or 0.50% of wages (option to withhold up to 100% from employee)
- Employee contribution: up to 50% or 100% of employer contribution (depending on employee count and employer determination)
Maryland
- Program name: Paid Family Leave
- Status: effective Oct. 1, 2024 (contributions) and Jan. 1, 2026 (employee benefits available)
- Employer contribution: 0.45% of wages ($758.70 max)
- Employee contribution: 0.45% of wages ($758.70 max)
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
Massachusetts
- Program name: Paid Family Medical Leave (PFML)
- Employer contribution: none for under 25 employees; 0.312% of wages ($526.03 max) for 25+ employees
- Employee contribution: 0.318% of wages ($536.15 max)
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
- Where to get more information: State of Massachusetts
Minnesota
Minnesota employers must report wages that were paid from from July 1 through Sept. 30, 2024 by Oct. 31, 2024.
- Program name: Paid Family Medical Leave (PFML)
- Status: effective Jan. 6, 2026
- Employer contribution: 0.70% of wages (option to withhold half from employee)
- Employee contribution: up to half (0.35%) of employer contribution, if determined by employer
New Jersey
New Jersey has two PFML programs:
- Program name: Temporary Disability Insurance
- Employer contribution: varies
- Employee contribution: none (100% employer funded)
- Wage base limit: $41,100 for employers; $156,800 for employees
- Program name: Family Leave Insurance
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.06% of wages ($94.08 max)
- Wage base limit: $156,800
New York
New York has two PFML programs:
- Program name: New York Short-Term Disability Insurance
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.50% of wages ($0.60/week)
- Program name: New York Paid Family Leave
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.455% of wages ($399.43 max)
- Wage base limit: $87,785.88 (average weekly wage of $1,688.19)
Oregon
- Program name: Paid Leave Oregon
- Employer contribution: 0.40% of wages ($531.60 max)
- Employee contribution: 0.60% of wages ($797.40 max)
- Wage base limit: $132,900
Rhode Island
- Program name: Temporary Disability Insurance (TDI) / Temporary Caregiver Insurance (TCI)
- Employer contribution: 0% of wages
- Employee contribution: 1.2% of wages ($1,044) for 2024
- Wage base limit: $87,000 for 2024
Washington
Washington has two programs:
- Program name: Washington Paid Family Leave
- Employer contribution: 27.24% of 0.8% of wages ($367.41 max)
- Employee contribution: 72.76% of 0.8% of wages ($981.39 max)
- Wage base limit: $168,600 (the federal Social Security taxable wage base)
- Program name: Washington Cares Fund
- Employer contribution: none (100% employee funded)
- Employee contribution: 0.58% of wages
Washington D.C.
- Program name: DC Family Leave
- Employer contribution: 0.26% of wages
- Employee contribution: none (100% employer funded)
Leave management made easy
More states than ever are jumping on the bandwagon and requiring that employers offer PFML insurance to their employees. But even outside of PFML, employers have other federal, state and employer-specific leave policies to manage. Managing all of these policies can present quite the administrative burden to organizations. Want to streamline your leave management processes, reduce non-compliance risks and provide your employees with the best possible experience — during a time they may need it most? Check out how our UKG Ready leave management tools can help. Click here for a video overview.
Editor's note: This blog was originally published on Jan. 17, 2023, but is routinely updated to reflect the most recent information. The latest revision occurred on Sept. 2, 2024.
