According to the most recent BLS (Bureau of Labor Statistics) data, 23% of private industry workers regularly have access to paid family leave. Do yours? If you do business in one of the U.S. states offering family leave laws, the answer should be yes. Without paid family leave, many Americans, when faced with a significant caregiving challenge whether because of the birth or adoption of a child; the need to care for a young child or elderly relative, or in some instances both; or their own medical illness or disability find themselves in an untenable situation.
So, what is paid family leave? Which U.S. states offering family leave? And, how do paid family leave by state laws compare with the federal Family and Medical Leave Act? Let’s delve into it.
What is paid family leave?
Paid family leave by state, or paid family and medical leave (PFML), is a state-specific family leave law that provides employees with paid family and medical leave. U.S. states offering family leave require employees and/or employers to contribute to a paid leave fund. Eligible employees who work in states with paid family leave by state laws receive wages when they take off from work for qualifying reasons.
In most (but not all) cases, family and medical leave are lumped together under one law. But, there’s a difference between the two:
Paid family leave:
Time away from work employees can spend bonding with a new child or taking care of ill family members.
Paid medical leave:
Time away from work employees can take to care for their own serious illness.
If you’re an employer with employees who work in one of the states with paid family leave, you need to know your responsibilities.
Paid sick leave:
Keep in mind that paid family leave is different from paid sick leave. Paid sick leave is time off an employee can use if they are out sick. A number of states have paid sick leave laws.
State family leave vs. federal family leave
The Family and Medical Leave Act (FMLA) is a federal law that requires businesses with at least 50 employees to provide unpaid leave. State paid family leave applies to employers who qualify for businesses in all states.
Under federal law, employees can take leave for:
- The birth, adoption, or foster care placement of a child.
- The care of a spouse, child, or parent with a serious health condition
- A personal serious health condition that makes the employee unable to perform their job
- A situation that requires attention because of the military deployment of a spouse, child, or parent
- The main difference between federal and state FMLA laws is whether the leave is paid or unpaid. Federal family leave is unpaid. State family leave is paid.
FMLA unpaid time off; State paid family leave is paid time off
State law generally requires employees, employers, or both to pay into a fund. You must deduct and/or contribute a standard percentage of an employee’s wages to fund paid family and medical leave. Because federal FMLA is unpaid, you don’t have to worry about these types of payroll deductions.
States with paid family leave
So, which are the U.S. states offering family leave paid? The following have state paid family leave laws:
- California
- Colorado
- Connecticut
- D.C.
- Delaware
- Maryland
- Massachusetts
- Minnesota (coming soon!)
- New Hampshire (voluntary)
- New Jersey
- New York
- Oregon
- Rhode Island
- Washington
Some cities, like San Francisco, also require paid family leave. And, there are some states that have an unpaid family leave law (e.g., Vermont) that applies to more employers than the FMLA.
Mandate state-specific family leave laws about. Let’s look at the detailed overview of the paid family leave by state law.
California
California’s Paid Family Leave was the first program implemented in the country. If you’re an employer in California, you do not need to contribute to the state’s paid family leave program. However, you must withhold contributions from your employees’ wages for the employee-funded program.
How long employees can take paid leave: Up to eight weeks within any 12-month period
Which employees qualify for leave: Workers who are “attached to the labor market” (e.g., employed), have wage loss due to the leave, and have sufficient earnings in the previous 12-month period.
Who pays: Employees
Contribution rate: 1.1% of employee wages.
Paid family leave benefit amount: Approximately 60-70% of the employee’s weekly salary.
Colorado
Colorado’s upcoming paid family leave program requires employers to start withholding and remitting employee and employer contributions in 2023. Employees can access paid family and medical leave benefits starting in 2024.
How long employees can take paid leave: 12 weeks, plus four additional weeks if the employee has medical complications.
Which employees qualify for leave: Employees with minimum wages of $2,500.
Who pays: Employees and employers.
Contribution rate: 0.9%, split 50/50 between employees and employers; businesses with fewer than 10 employees are exempt from employer portion
Paid family leave benefit amount: Varies based on how the employee’s average weekly wage compares to the state average; maximum weekly benefit is $1,100 for 2024
Connecticut
Connecticut’s Paid Family and Medical Leave Act (PFMLA) program began in January 2021.
How long employees can take paid leave: 12 weeks in a 12-month period (plus 2 additional weeks of maternity leave)
Which employees qualify for leave: Full-time and part-time employees who earned at least $2,325 in the highest-earning quarter of the first four of the past five quarters and is working in the state during the past 12 weeks.
Who pays: Employees
Contribution rate: 0.5% of employee wages.
Paid family leave benefit amount: Based on employee wages; maximum benefit is 60 times the states minimum wage
D.C.
D.C.’s Paid Family Leave program is employer-only, meaning you do not withhold premiums from employee wages.
How long employees can take paid leave: Duration depends on reason for time off.
Which employees qualify for leave: Employees who worked for an employer in D.C. before needing to take PFL.
Who pays: Employers.
Contribution rate: 0.62% of each employee’s wages.
Paid family leave benefit amount: Based on employee wages; maximum weekly benefit of $1,009.
Delaware
Delaware’s Healthy Delaware Families Act goes into effect in 2025. Employer contributions begin in 2025, and employees can start applying for benefits in 2026.
Although it’s a few years away, here’s what you need to know about Delaware paid family leave:
How long employees can take paid leave: Up to 12 weeks per year.
Which employees qualify for leave: Employees who work at least 1,250 hours for a covered employer in the preceding 12 months.
Who pays: Employers and employees.
Contribution rate: 0.8% total (up to 0.4% employee contribution).
Paid family leave benefit amount: 80% of the employee’s weekly wages.
Maryland
Maryland’s Family and Medical Leave Insurance (FAMLI) Program goes into effect in 2023. Employer contributions begin in 2024, and employees can begin applying for benefits in 2026.
How long employees can take paid leave: Up to 12 weeks per year (or up to 24 weeks in some situations)
Which employees qualify for leave: All who work at least 680 hours over the preceding 12-month period.
Who pays: Employees, plus employers with 15 or more employees.
Contribution rate: 1.2% (maximum).
Paid family leave benefit amount: Varies based on employee’s wages
Massachusetts
Massachusetts Paid Family Medical Leave (PFML) is an employee and employer program. All employees must contribute. Employers with 25 or more employees must also contribute.
How long employees can take paid leave: Up to 26 weeks per year
Which employees qualify for leave: Full-time and part-time employees working in Massachusetts
Who pays: Employee and employers with 25 or more employees.
Contribution rate: 0.68% of employee wages, split between employee and employers with 25 or more employees; 0.344% of employee wages for employers with fewer than 25 covered individuals.
Paid family leave benefit amount: Varies based on employee’s wages; maximum of $1,084.31 per week.
Minnesota
The Paid Family and Medical Leave program for Minnesotans will launch in 2026. This upcoming law applies to all employers, regardless of size.
How long employees can take paid leave: Up to 12 weeks of work per year for a single qualifying event; up to 20 weeks of combined medical and family leave if more than one qualifying event in the same claim year.
Which employees qualify for leave: Employees who experience a qualifying event and have earned more than about $3,500 in wages in the state over a period of a year.
Who pays: Employers and employees.
Contribution rate: 0.7% of employee wages (a maximum of 0.35% can be deducted from employees’ wages).
Paid family leave benefit amount: Varies based on weekly pay.
New Hampshire
New Hampshire’s Granite State Paid Family Leave Plan is a voluntary program employers and/or employees can choose to participate in. Coverage must be provided by January 1, 2023. Employers can receive a tax credit for opting in. If employers do not opt in to the program, employees can join on an individual basis.
How long employees can take paid leave: Up to 6 weeks of work per year
Which employees qualify for leave: Up to the commissioner, who can set a tenure requirement and waiting period.
Who pays: Employers and employees (voluntary).
Contribution rate: Varies.
Paid family leave benefit amount: 60% wage replacement.
New Jersey
New Jersey’s Family Leave Insurance program is funded by employees only. Take a look at the program basics:
How long employees can take paid leave: Up to 12 weeks (consecutive) or 8 weeks (non-consecutive) in a 12-month period
Which employees qualify for leave: Employees who worked 20 weeks earning at least $240 weekly or earned a combined total of $12,000 in the first four of the last five completed quarters.
Who pays: Employees
Contribution rate: 0.14% of employee wages up to the wage base
Paid family leave benefit amount: Varies based on employee wages; maximum weekly benefit of $993 in 2022
New York
New York’s Paid Family Leave is an employee-only program. As an employer, you do not need to pay into the PFL fund.
How long employees can take paid leave: Up to 12 weeks of leave
Which employees qualify for leave: Employees who work 26 consecutive weeks or 175 days in a year.
Who pays: Employees
Contribution rate: 0.455% of employee wages, up to the wage base (Starting 1/1/24, the rate will be 0.373%.)
Paid family leave benefit amount: 67% of average weekly wage, up to a cap of 67% of the current New York State average weekly wage.
Oregon
Oregon’s Paid Family and Med.cal Leave Insurance (PFMLI) program started in 2023 with employee and employer payroll contributions. Employees can use benefits beginning September 1, 2023.
How long employees can take paid leave: Up to 12 weeks, plus an additional 2 weeks as maternity leave.
Which employees qualify for leave: Employees who earned $1,000 or more in the previous year.
Who pays: Employees and employers.
Contribution rate: Will be determined annually (maximum of 1%), shared between employees (60%) and employers (40%)
Paid family leave benefit amount: Varies based on employee’s average weekly wage; can be up to 100% of regular wages
Rhode Island
Rhode Island’s paid family and medical leave program is divided into two parts:
Temporary Disability Insurance (TDI): Employees can use to care for their own illness or injury
Temporary Caregiver Insurance (TCI): Employees can use to care for a new child or family member
How long employees can take paid leave: Employees can take TCI for up to 5 weeks and TDI for up to 30 weeks
Which employees qualify for leave: Employees must be out of work for at least 7 days due to qualifying reasons before receiving TDI or TCI benefits.
Who pays: Employees
Contribution rate: 1.1% of employee wages up to wage base
Paid family leave benefit amount: Varies based on employee wages; maximum of $987.
Washington
If you’re a Washington employer, withhold the Washington Paid Family & Medical Leave premium from employee wages. If you have 50 or more employees, you must also contribute an employer portion.
How long employees can take paid leave: Up to 12 weeks; up to 16 weeks for employees with more than one qualifying event; up to 18 weeks for employees who experience a pregnancy or birth condition that incapacitates them
Which employees qualify for leave: Workers who have worked a minimum of 820 hours during the previous year
Who pays: Employees and employers with 50 or more employees
Contribution rate: 0.6% of employee wages, shared by employee (73.22%) and, if applicable, employer (26.78%), up to the Social Security wage base
Paid family leave benefit amount: Up to 90% of the employee’s weekly pay; maximum of $1,327 in 2022
Paid family leave by state and payroll
As an employer, you must accurately withhold deductions, like state-mandated paid family leave, and taxes from an employee’s wages.
So, which comes first? Do you withhold taxes before or after you deduct paid family leave premiums?
Paid family leave state premiums are post-tax deductions. This means you withhold taxes before you deduct state premiums from employee wages.
Recent legislative changes and development
New changes to paid family and medical leave will occur in 10 states and the District of Columbia this year.
PFML programs are often funded in part by deductions from employee wages and/or employer premiums, and similar to minimum wage, some laws require an annual adjustment to the contribution percentage, the maximum amount to deduct from employee wages, and/or the total amount of employee wages that is subject to the deduction.
Similarly, there are more than a minimal number of references to the “Maximum Weekly Benefit” the most amount of money an employee will receive under the PFML program when they take a qualifying absence, which is based on a weekly calculation. The laws also set a minimum amount, though, not many of those have changed.
What Countries have paid family leave?
There are 193 countries in the United Nations, and just a few do not mandate paid parental leave, including: New Guinea, Suriname, a few island nations in the South Pacific, and the U.S.
According to data from the Pew Research Center, the U.S. is the only country among the 41 nations that make up the Organization for Economic Cooperation and Development (OECD) and the European Union (EU) that doesn’t mandate paid parental leave.
Of the other 40 nations which have mandatory paid leave, the shortest amount of paid leave required is about two months. The country of Estonia provides workers with more than a year and a half of paid leave after becoming new parents.
The following countries provide more than a year of paid time off:
- Bulgaria
- Hungary
- Japan
- Lithuania
- Austria
- Slovakia
- Latvia
- Norway
- Slovenia
What Is the Future of paid family leave in the U.S.?
Over the past several decades, the U.S. workforce has changed significantly. Today, both parents work in nearly half of two-parent households, and the majority of women with young children work outside of the home. As a result, there is a greater push than ever for mandatory paid family leave in the U.S., and not just maternity leave, but policies that also support fathers, adoptive parents, and parents in non-traditional families such as same-sex families.
Many bills have been introduced in Congress that would create a paid parental leave program. Most well-known is the Family and Medical Insurance Leave Act, or FAMILY Act. The plan would pay qualifying employees up to 66% of their wages for 12 weeks (up to $1,000 per week). A 0.2% payroll tax would be used to fund the program.
Benefits of paid family leave
Supporters of paid parental leave say that there are economic and health benefits to paid parental leave. Families and children, in particular, benefit from the programs, studies show.
- Reduction of infant mortality by up to 10%
- Increased likelihood of infants getting well-baby care visits and vaccinations
- Increased likelihood and duration of breastfeeding, which is beneficial to infant health
- Mental health benefits for mothers, including fewer symptoms of depression, both after childbirth and long-term
- Fathers who took paternity leave are more involved with child rearing
According to the National Partnership for Women and Families, paid leave benefits families by making them more economically secure and better able to manage work and family responsibilities.
Families and children aren’t the only ones to benefit from paid parental leave, the National Partnership reports. Employers, including small businesses, have also benefited in the states that have implemented paid leave programs. For example, paid leave was found to increase employee morale and reduce expensive turnover.
Public Opinion and Political Views
The Pew Research Center reports that a majority of Americans support paid parental leave, with 82% saying that mothers should have paid maternity leave and 69% saying that fathers should have paid paternity leave. Democrats have long-supported the idea of mandatory paid parental leave, and some Republicans also came out in support of the benefits.
While the U.S. remains the last “wealthy” country without paid maternity leave, change could soon be coming. Details like how to fund a national program still need to be worked out, but advocates say the states with their own policies have provided a roadmap to success. State paid family leave for all federal employees could be the first step toward paid leave for all.