It Started With FMLA
The Family and Medical Leave Act, or FMLA, was enacted in 1993 to provide eligible employees with an unpaid, leave option when needing to take care of themselves or family members. The employee’s job is protected for up to the maximum time period allowed.
| Timeline | Legislative Activity |
|---|---|
| 1993 | U.S. passed FMLA, a labor law, that grants employees up to 12 weeks of unpaid, job-protected leave within a 12-month period for:
Employees and employers must meet eligibility requirements. |
| 2008 – 2009 | FMLA amendment:
|
| 2009 | FMLA amendment:
|
| 2015 |
|
But FMLA Doesn't Cover Everyone
While FMLA provides a safety net for many employees across the country, it does not cover a variety of other employees. For instance:
- Employees in businesses with fewer than 50 employees
- Part-time employees
- Employees who may need time off to care for seriously ill elderly relative (other than parents)
- Employees or family members with short-term illnesses like a cold
- Employees who need time off for routine medical care
- Employees who need to take time to care for pets
Then States Introduced PFML to Expand Coverage
Attempts to increase and expand family leave benefits failed at the federal level, which led states to design their own leave policies. This caused considerable variation in leave policies across the states. Some examples of additional benefits offered at the state level include:
- Paid defined benefit, typically a percentage of the State Average Weekly Wage, or SAWW
- Lowered employee thresholds for employers
- Added grandparents, domestic partners and in-laws to family definitions
- Coverage for organ or bone marrow donors
- Coverage to address impacts of domestic violence, stalking or sexual assault
Subject to state law, PFML can also provide job protection, with the added benefit of time off being paid.
How Do State PFML Benefits Work?
Payment comes from contributions that are collected, primarily, from both employer and employees and are put in a state contribution fund. Employees can receive paid time off, in proportion to their earnings and the SAWW.
Common state features include:
- Employee eligibility is determined by where the employee works (not where they live).
- The benefits payable are determined based off of the employee's earnings in relation to the state's benefit calculation. Lower-wage earners may have a more proportionate income replacement from PFML than higher-wage earners.
- Job protection, if provided under PFML, will differ in time of service required from FMLA. For instance, some states only require as little as 90 days of service for PFML while FMLA requires 12 months and 1,250 hours worked.
- The maximum benefit period typically covers all leave reasons used within a benefit year (for example, own serious health condition leave and a care of family leave used within the same benefit year could all pull from the same maximum of 12 weeks available).
- Employer size often impacts contribution requirements for employers.
Can Employers Choose a Private PFML Plan?
Most states with statutory disability and PFML programs allow an employer to offer either the state-run plan or a private plan administered by an insurance carrier. In most states, employers who choose to offer a private plan must apply through their state paid family and medical leave administrative department to receive approval.
In general, the private plans must:
- Be provided by a state-approved carrier with a state-approved contract — and the carrier must continue to comply with any future changes mandated by the state
- Offer the same or better benefits than the state plan
- Not cost the employee more in contributions than the state plan
Other employer requirements could include:
- Employer may withhold employee wages to cover the plan’s premium costs up to the state's allowed limit
- Employers may share the costs of the premiums (they may cover more of the total contribution than is statutorily required, reducing the amount employees are subject to contribute)
- Inform employees of the available benefits and any changes to the benefits
- Some states require that employees vote to allow the private plan
- Other specific state requirements
Learn More About PFML Plans
View more information about state PFML plans and which states allow private plans.
Learn about the advantages of choosing a private-run plan.