Paid leave as a workforce strategy: How you can simplify administration and boost employee well-being starting today
Today, over 6 in 10 employers have workers in states with paid family and medical leave (PFML) legislation.1 As more states introduce their own PFML programs, employers are managing a benefits landscape that looks different across state lines.
At the same time, Guardian’s latest paid leave insights show that employee expectations are evolving for reasons that extend well beyond legislation alone. As caregiving responsibilities grow, personal health needs evolve, and flexibility and financial wellness take on greater importance, many employees increasingly expect paid leave support, regardless of where they work. These expectations are shaping how workers evaluate employers and are becoming a meaningful factor in attraction, retention, and overall well‑being.
To help employers stay ahead — and stay competitive — in this evolving paid leave landscape, Guardian offers robust solutions for state paid leave programs and has introduced an industry‑leading paid leave rider, designed to close coverage gaps and ensure employees can access paid family leave even in states without mandated PFML.
Paid leave insights and solutions are explored across both our newest thought leadership report, The Paid Leave Imperative, and our recent webinar, which together examine how employers can adapt to evolving leave demands and provide meaningful support.
Here are the key themes to keep in mind as you evaluate your organization’s paid leave strategy.
Today's leave landscape calls for solutions that support benefits parity across state lines
Workers need more than job protection — they need income protection
Many employees who have access to leave still face a difficult trade‑off when leave is unpaid — take the leave they need or risk financial vulnerability. As a result, some workers delay or forgo leave altogether because they can’t afford the loss of income.
State variation is often shifting the challenge from compliance to consistency
As of 2026, more states have active, upcoming, or voluntary paid family and medical leave (PFML) programs than ever before. While state requirements will always differ, a growing challenge for employers is not the existence of these programs, but the uneven employee experience they can create across a multistate workforce.
Differences in eligibility can lead to employees receiving very different levels of paid leave support depending on where they live, even when working for the same employer.
Employers are looking for ways to create more consistent paid leave experiences
To address these disparities, many employers are evaluating how to supplement state programs and extend paid leave access more broadly, particularly for employees in non‑PFML states. The goal isn’t to replace state mandates — but to reduce gaps, improve equity, and offer a more consistent and competitive paid leave experience across the organization.
This is where a paid leave rider can play a meaningful role.
Guardian’s paid leave rider: supporting parity across both PFML and non‑PFML states
Many employers want to offer paid family leave and ensure consistent access for employees, regardless of where they live or whether their state has a PFML mandate. Guardian helps employers meet this need through its industry‑leading paid leave rider to group short‑term disability (STD) insurance. This flexible solution extends paid leave access, supports benefit parity, and integrates seamlessly with existing benefits in both PFML and non-PFML states.
Guardian’s paid leave rider helps provide a more consistent, competitive paid leave strategy that supports employees during critical times in their lives. Added to a short‑term disability plan, a paid leave rider enables employers to:
Provide paid family leave in states without a PFML mandate.
Supplement state‑mandated benefits where PFML programs exist.
Cover events such as bonding with a new child or caring for a seriously ill family member.
Improve parity across states and employee populations.
New savings opportunity: the PFML premium tax credit
Another important development that employers should be aware of is the federal PFML premium tax credit (Section 45S), available nationwide.
Employers can now claim a tax credit for premiums paid on group plans that cover FMLA‑type leave, including:
Short‑term disability.
Paid family leave.
Paid family and medical leave policies.
The credit can offset up to 25% of eligible premiums, easing the financial impact of expanding paid leave.
Next steps for employers
Building a competitive, compliant, and compassionate leave program requires employers to rethink how they support workers across geographies and life stages.
Actionable next steps and considerations that you can begin addressing today:
Embrace solutions that simplify multistate compliance.
Expand paid family leave to achieve greater parity.
Broaden leave categories to reflect caregiving realities.
Evaluate whether a private plan or paid leave rider can help streamline administration.
Leverage the PFML premium tax credit to help reduce costs.
Paid leave isn’t just a benefits decision — it’s a workforce strategy. Organizations that act now are often better positioned to support their people, strengthen retention, and stay ahead of evolving regulations.
Learn more
Want to dive deeper into how your organization can make paid leave more efficient, equitable, and supportive for your workforce? Read the report here, and watch the webinar here.