Family and Medical Leave: Four More States Launch PFML
Everything brokers need to know about expanding revenue through required benefits
The new year brings new Paid Family and Medical Leave legislation in four states. Insurance brokers should be aware that Delaware, Maryland, Maine, and Minnesota passed legislation requiring family and medical leave insurance for most workers in their states. Brokers licensed to write benefits in these states can prepare now by understanding the benefits packages and timelines for rollouts.
You can begin marketing now, starting with your clients who already purchase healthcare, business insurance, or ancillary benefits. Then, expand your list to include businesses that need to know about important mandatory family and medical leave benefits and will be seeking a trusted resource.
The DBL Center acts as your advisor and back-office staff to help you get quick quotes, respond to RFPs, and service your clients in a white-label, white-glove capacity.
It starts with knowing the benefits available in the states you serve.
Maryland Family and Medical Leave Insurance (FAMLI)
Maryland employers have an option for a state-administered plan or a private plan through select carriers approved by the state. It is expected that employers will begin taking payroll deductions for premiums beginning October 1, 2024, pending legislation. Employers who opt in for a private plan will not have to contribute to the MD FAMLI state plan.
Now is the time for insurance brokers in Maryland to make business owners and benefits administrators aware of the cost savings and premium service available through a private plan. The DBL Center is here to help you write FAMLI benefits in Maryland.
Delaware Paid Leave
Beginning in the fourth quarter of 2024, between September 1 and December 1, employers who want to write benefits through a private plan can opt out of state coverage. Small groups can also opt in for Delaware Paid Leave.
In January 2025, employers must begin deducting payroll contributions for the state plan. Those who privatize may be able to defer these deductions until private premiums are due, essentially saving money in the first year. In January 2026, benefits will begin. Maximum benefits for 2026 and 2027 are $900 per week, with the minimum being $100 or the covered employee’s average weekly wage, whichever is smaller. After 2027, the state of Delaware plans to increase benefits in line with the consumer price index.
Premium rates equal 0.8%, split equally between the employer and employee.
Maine Paid Family and Medical Leave
As of now, Maine plans to pass rules related to paid family and medical leave in Spring 2024, with payroll contributions set to start January 1, 2025. Benefits will be available in May 1, 2026, based on the current timeline.
The benefit is expected to be calculated as follows:
- The portion of the covered individual’s Average Weekly Wage (AWW) that is equal to or less than 50% of the State Average Weekly Wage (SAWW) will be replaced at a rate of 90% and
- The portion of the covered individual’s AWW that is more than 50% of SAWW will be replaced at a rate of 66% up to the maximum weekly benefit
The maximum weekly benefit will be equal to the state’s average weekly wage, which changes annually.
Minnesota Paid Family and Medical Leave
By mid-2024, most Minnesota employers will need to submit a wage detail report to the state. In late 2025, employers must notify workers about the new Paid Leave program. Payroll contributions, along with benefits, will start in January 2026, as of now.
Contributions will equal 0.7% of taxable wages up to the Social Security Wage Cap, split evenly between the employer and employee. Employers may contribute some or all of the employee portion.
Minnesota PFML benefits, beginning in 2026, will be set as follows using a three-tiered benefit schedule:
- 90 percent of wages that do not exceed 50 percent of the state’s average weekly wage; plus
- 66 percent of wages that exceed 50 percent of the state’s average weekly wage but not 100 percent; plus
- 55 percent of wages that exceed 100 percent of the state’s average weekly wage.
The maximum weekly benefit amount will equal the state’s average weekly wage, calculated annually on or before June 30.
Let The DBL Center Help You Hit the Ground Running
We often say that it’s important to work months ahead in the insurance industry, but when it comes to paid family leave we’re preparing years in advance. For brokers in these states, now is the time to begin sharing the advantages of privatizing paid family and medical leave insurance.
The DBL Center was first on the scene when PFL came to NY. We have since navigated the nuances of these programs across many other states. We can help you and your clients understand FAMLI benefits, the advantages of privatization, and how to implement the program seamlessly.