Paid Leave Legislative Activity

Effective: Aug. 1, 2023

Alabama enacted House Bill 141, which creates the Alabama Paid Family Leave Income Replacement Benefits Act. This Act authorizes insurers providing employee disability policies to expand their fully insured disability benefits offerings to include family leave taken by an employee, through employer-sponsored group insurance policies or voluntarily purchased employee policies. Leave reasons that may be covered by these new policies include the following: 

1. Participate in providing care, including physical or psychological care, for a family member of the employee made necessary by a serious health condition of the family member;
2. Bond with the employee's child during the first 12 months after the child's birth, or the first 12 months after the placement of the child for adoption or foster care with the employee;
3. Address a qualifying exigency as interpreted under the Family and Medical Leave Act, arising out of the fact that the spouse, child, or parent of the employee is on active duty, or has been notified of an impending call or order to active duty, in the Armed Forces of the United States;
4. Care for a family service member injured in the line of duty; and
5. Take other leave to provide care for a family member or other family leave as specified in the insurance policy.

The insurance policy will indicate the length of family leave benefits available for each covered family leave reason, which must be at least two weeks during a period of 52 consecutive calendar weeks. The Act provides additional details and direction as to the requirements for these new insurance policies.

On July 11, 2023, Maine Governor Janet Mills signed into law a budget that will establish a paid family and medical leave program in the state. Employees will be able to begin taking leave and receiving benefits on May 1, 2026 (subject to a potential short delay based on an actuarial study). Employees and employers will begin contributing to the state plan on January 1, 2025. 

Nearly all employees in Maine, including both private and public sector workers, will be covered. Job protection will apply to employees who have worked for their employer at least 120 days prior to their leave. The law provides up to 12 weeks of paid time off for an employee’s own medical condition, family leave (care of family member and bonding), safe leave and military exigency. Benefits are calculated as 90% of the portion of an employee’s wages that is less than or equal to 50% of the state average weekly wage plus 66% of the portion of wages exceeding 50% of the state average weekly wage. Benefits will be capped at 100% of the state average weekly wage. Employers will have the option to participate in the state plan or opt out of the state plan and provide benefits under comparable private plans. 

Colorado’s average weekly wage will be increasing in July 2023. That means that when paid leave benefit payments become available in January 2024, those payments will be based on the new State average. The State’s new average weekly wage will increase to $1,421.16 starting July 1, 2023, an increase of more than $70 from the current average. 

While payments will be based on a higher average in 2024, there will be no change to premiums. Premiums will remain at 0.9% of wages, and employers will still only be allowed to deduct up to 0.45% of that from workers.