PFML Across the US: The latest on state PFML laws

The Latest Changes to PFML Laws by State: What employers need to know for 2024

Paid family and medical leave (PFML) laws have exploded in the past few years. And with more employees working remotely from different states across the country, employers find themselves in the position of needing to understand and comply with a growing number of state leave laws.

Guardian’s Absence Management Channel Director, Garlande Patz, and Regional Absence Practice Lead for the Southeast, Erin Turnamian, teamed up in this webinar to explore the most recent state updates that employers should know to take on a successful 2024.

New states with upcoming PFML programs: How employers can prepare

To help employers keep track of the growing number of states with PFML laws on the books, here’s a brief look at the upcoming state programs — and what you can do now to prepare for what lies ahead in each respective state.

Colorado PFML: Program effective date January 1, 2024

Employers opting for a private plan needed to have submitted their application by October 31, 2023 to be eligible for a refund of 2023 contributions remitted to the FAMLI division.

Note for future effective dates: Employers opting for a private plan must submit their complete private plan application for state approval at least 60 days in advance of their requested effective date.

Effective January 1, 2024, the maximum weekly benefit will be $1,100. This is subject to change on July 1, 2024, following the update to the new CO State Average Weekly Wage (SAWW).

The taxable wage cap for contributions will increase from $160,200 to $168,600 to align with the update in the Social Security Income Limit (SSIL).

States with programs effective in 2026

Maryland, Delaware, and Minnesota all have PFML laws coming into effect on January 1, 2026 — with Maine following closely behind to go into effect on May 1, 2026. Employers looking to get ahead of these regulations can begin following updates for those states, considering whether they might prefer a private plan option, and preparing for contributions to begin in October 2024 for Maryland, January 2025 for both Delaware and Maine, and January 2026 for Minnesota.

Existing states: Updates to current state PFML programs that are changing in 2024

As more states add their names to the list of those with PFML programs, those states with existing laws continue to make updates and adjustments. Here are some of the states that are updating their regulations for 2024 — and what employers need to know to stay ahead in the new year.

Connecticut

• Effective January 1, 2024, the state increased the maximum employee annual contribution from $801.00 to $843.00, and the SSIL from $160,200 to $168,600 in 2024.

• On January 1, 2024, the state minimum wage also increased to $15.68 and will be reviewed annually, with the expectation of year-over-year increases going forward. This also brings up the maximum weekly benefit from $900.00 to $941.60, as it is based on the state minimum wage.

• Unlike many states, Connecticut requires all private plans exemptions to be renewed every three years and be in hand 30 days before an employer’s current exemption expires. Employers should start their renewal process approximately two months before their private plan exemptions expire so they can avoid any state penalties.

Massachusetts

• In Massachusetts, employers are automatically enrolled in the state plan and must apply to use a private plan. In 2024, the combined contribution rate will increase from 0.63% to 0.88% of an employee’s weekly wages, up to the SSIL. At the same time, the SSIL will also increase to $168,600.

• The maximum weekly benefit will increase from $1,129.82 to $1,149.90.

• Beginning November 1, 2023, employees who apply for PFML benefits directly through the state program (as opposed to private plans) will also have the ability, based upon their employer policy, to supplement their PFML benefits with their employer-provided accrued paid leave, such as PTO.

New Jersey

• For New Jersey, Temporary Disability Benefits (TDB) and Family Leave Insurance (FLI) are administered as separate benefits.

• 2024 is the second year in a row that New Jersey employees will not contribute to the cost of their TDB coverage, as employee contribution rates and maximum employee annual contributions remain at 0% and $0.00, respectively. However, policies written as contributory will remain as such since the maximum employee contribution rate is subject to change every year.

• In New Jersey, FLI will continue to be fully funded by employees, with the employee contribution rate increasing from 0.06% to 0.09% of employees’ wages up to the taxable wage maximum. As such, the maximum employee annual contribution increasing from $94.08 to $145.26 in 2024.

• For both NJ TDB and NJ FLI, the taxable wage maximums are also increasing for employers from $141,100 to $42,300, and for employees from $156,800 to $161400. In addition, the maximum weekly benefit is rising from $1,025 to $1,055.

Oregon

• Oregon has one of the newest PFML programs, having gone live in September 2023. In 2024, the maximum employee annual contribution increased from $797.40 to $1,011.60, and the taxable wage maximum went from $132,900 to $168,600, to align with the SSIL as of January 1, 2024.

• The maximum weekly benefit will remain at $1,523.63, but is subject to change on July 1,2024 following the update to the OR SAWW.

New York

• Similar to New Jersey, New York statutory benefits are separated into Disability Benefits Law (DBL) and Paid Family Leave (PFL), however unlike New Jersey, NY PFL benefits are administered by the same provider as NY PFL as a rider under the same policy. For both, employers are not automatically enrolled in a state plan, but rather must opt into the NY State Insurance Fund (NYSIF) or apply for a private plan with an approved private insurance carrier to avoid penalties.

• In 2024, the NY PFL employee contribution rate and the maximum employee annual contributions for PFL are actually decreasing from 0.455% to 0.373%, and $399.43 to $333.25, respectively.

• At the same time, the PFL maximum weekly benefit will increase from $1,131.08 to $1.151.16.

States with NCOIL-modeled policies

Some states allow for voluntary paid family leave plans, approving plans based on the NCOIL (National Council of Insurance Legislators) model — a voluntary model created by a group of legislators who serve on state insurance and financial institution committees around the nation.

The model provides a framework for states (currently Alabama, Arkansas, Florida, Tennessee, and Texas) that might not have a current appetite for a full-blown program, but still want to give employers the opportunity to offer an insured product to their employees. NCOIL allows for PFML to be a standalone insurance product or added as a rider to short-term disability policies, aiming to bring benefit equity to multi-state employers. NCOIL-modeled policies typically pay benefits under certain circumstances, including:

• the addition of a child to a family by birth, adoption, or foster care

• the need for an employee to provide care for a family member with a serious health condition

• the event of a family member being called to active duty.

“What really stands out here is that these plans are intended to be voluntary, so employers are not required to shoulder any of the financial burden of these plans,” says Turnamian.

Is your organization ready for the changes and updates to PFML laws? Watch the full webinar to learn more details about each state's changes.

Need more foundational knowledge on PFML state laws? Check out Guardian’s multi-registration page to sign up for more than one episode from this year’s Absence Management Academy — or other episodes that pique your interest!