Here are some key considerations as you start to implement PFML:
- What benefit plans are impacted by or integrate with a PFML plan (for example, STD, LTD, FMLA or other paid leaves)?
- Should you layer benefits to create equity across states or employee classes?
- Are there any benefits you should sunset or replace?
- Should you shift employee costs (for example, voluntary plans or changes to medical)?
- What is your communication strategy to minimize any confusion?
Additional Considerations
Here are some considerations when you implement PFML with other leave programs.
FMLA and State Leaves
PFML typically runs concurrently with other statutory leaves. However, there are instances in which leaves may not run concurrently:
- Qualifying family members for care of family are different
- Different eligibility requirements
- Different leave reasons
- The calendar method used for leave entitlement varies
These programs, which often provide job protection, may have eligibility and entitlement components that are different from PFML.
- Evaluate the plan design (such as calendar method) and determine the best practice for communicating entitlement differences to employees.
Short Term Disability
PFML is typically the primary payer. STD benefits may automatically be reduced by any PFML benefits the employee is eligible to receive.
STD plans can provide enhanced benefit protection for most workers, especially high-wage earners.
- STD typically allows for multiple leave uses within a 52-week period. Whereas, PFML entitlement, once exhausted through either family or own medical use within the 52-week period, will not cover any additional medical incidence(s).
- For example, an employee could use all 12 weeks of PFML on family care and then have a later need for their own medical care.
Long Term Disability
Review the LTD benefit waiting period related to maximum PFML entitlement to consider how the benefits do and don’t dovetail.
- For example, the PFML benefit might only cover 12 weeks, while the LTD benefit waiting period is 180 days.
Employer-Paid Leave(s)
Evaluate for areas that may conflict with new laws. For example, does your PTO or sick leave policy need to be restructured?
- Update policies and employee guides to explain how benefits will coordinate with PFML program(s).
Why Maintain Short Term Disability Coverage?
PFML coupled with STD insurance can help protect your employees' income when they need it most. See some specific scenarios of how STD coverage comes into play to help fill any potential income protection gaps.