Family Paid Leave Programs Status

New York was one of the first states to introduce a Paid Family Leave (PFL) program underwritten privately by the same insurance brokers that provide DBL short-term disability coverage in New York. In 2017, when PFL was introduced, it was written as a rider to DBL. Today, brokers can write a separate policy for PFL, offering lowering premiums and better service. In 2021, New York PFL was fully rolled out, offering 67% of an employee’s average weekly wage.

Connecticut combines short-term disability coverage for workers with family leave in its PFML program. One of the most generous programs in the country, with a very broad definition of who qualifies as a family member under the plan, Connecticut PFML pays 95% of an employee’s average weekly wage up to 40 times the state minimum wage, and then 60% of the average weekly wage up to 60 times the state minimum wage, with a maximum weekly benefit of $825. Connecticut PFML went into full effect in January 2022.

Massachusetts fully rolled out its family and medical leave benefits on January 1, 2021, although paid leave to care for a family member with a serious health condition did not go into effect until July 1, 2021. Paid leave under Massachusetts FMLA varies based on the reason for the leave, ranging from 12 weeks to care for a family member or a child, up to 26 weeks to care for a family member in the military who has a serious health condition. Medical leave for the employee can last up to 20 weeks. The benefits received vary based on the employee’s pay, and max out at a weekly benefit of $1,084.31 in 2022.

Oregon joins the many states with a paid family and medical leave plan set to go into effect in 2023. Employers must remit premiums for Oregon Paid Leave by January 1, 2023, and employees can claim benefits starting September 3, 2023. Benefits vary based on the state average weekly wage and the employee’s average weekly wage, but cannot be less than 5% of the SAWW or more than 120% of the SAWW. Oregon business owners will have the opportunity to write an equivalent plan, approved by the state, through a private carrier.

Colorado recently announced its FAMLI (Family and Medical Leave Insurance) program, which will be fully rolled out by 2024. Employers are to begin deducting premiums in January 2023. Colorado workers can receive between 37% and 90% of their average weekly wage, depending on their income level. The benefit will max out at $13,200 annually in 2024.

New Jersey’s Family Leave Insurance is written by the state as a rider to Temporary Disability Benefits (TDB) insurance. Insurance brokers can help their clients privatize TDB coverage for better service and reduced premium costs. New Jersey FLI pays out 85% of an employee’s average weekly wage, up to a maximum of $993 per week in 2022.