State’s Laws for Paid Family Leave

When discussing family leave, most people’s conversations center around The Family and Medical Leave Act (FMLA),which was enacted in 1993. FMLA applies to public and private employers with 50 or more employees. It lets eligible workers keep their insurance coverage and provides job protection while they take temporary leave for up to 12 weeks in any 12-month period. Covered events for employees include the birth of a child, caring for a seriously ill family member, or recovery from a personal health condition.

FMLA is good legislation, but the downside is that employees are not paid while they’re on leave. This situation can strain the finances of working families, which often results in an employee returning to work when they’re not ready.

Momentum continues to build for a federal paid family leave legislation. A whopping 73% of people surveyed said they support federal funding for paid leave (New America), which ranked higher than universal pre-K (67%) and free community college (61%). But we’re not quite there yet. Fortunately, states are realizing the challenge, and a handful have stepped in to take up the slack by providing paid leave to their citizens.

What Is Paid Family and Medical Leave (PFML)?

The Department of Labor (DOL) defines paid family and medical leave as an employee’s compensated absence from work because of medical conditions—personal or that of a family member—that necessitate more time away from work than the employer’s regular sick or PTO policies provide. PFML is made up of two segments:

• Paid family leave, which gives employees paid time off to take care of a sick family member or a new child. This type of leave is often called “caregiver leave” or “family leave insurance.”
• Paid medical leave, which gives employees paid time off for their own serious illness or injury. This type of leave is also called “temporary disability insurance” or “short-term disability.”

Types of Family Medical Leave Laws

Knowing the type different types of paid family medical leave requires recognizing the two distinct approaches states take to provide these benefits

Mandatory

 Mandatory leave programs are comprehensive state family and medical leave laws that require most employers to participate, with benefits funded through contributions from employees, employers, or both. This approach to paid family medical leave ensures broad coverage, though implementation timelines vary.

Voluntary

In contrast, states that offer paid family leave through voluntary programs enable employers to choose whether to participate, often providing tax incentives for those who do. This creates flexibility for businesses and expands access to paid leave. However, the voluntary nature of these programs means coverage is not universal, and states offering paid family leave through this model may see more limited uptake compared to mandatory systems

What Constitutes a Serious Health Condition for the Purposes of Paid Family Leave?

FMLA – and most states that have their own laws – define “a serious health condition” as an injury, illness, physical or mental condition that requires inpatient care in a hospital, hospice, or long-term medical care facility.

Federal, State, and Local Policies on Sick, Family, and Medical Leave

As of 2024, only 27% of private industry employees had access to paid family leave insurance (Center for American Progress). According to the U.S. Department of Labor’s Bureau of Labor Statistics, 89% of private industry and 94% of state and local government workers had unpaid leave benefits in 2021.

States with Paid Family Leave

The 15 states/municipalities that have a paid family leave program are:

• California (employee contribution paid along with mandatory state disability)
• Connecticut (employee contribution, no employer tax)
• Colorado (employer and employee contributions; employer portion exempt for small employers)
• Delaware (employer and employee contributions beginning in January 2025, benefits beginning January 2026)
• District of Columbia (employer tax; no employee contribution)
• Maine (employer and employee contributions beginning in January 2025, with benefits scheduled for May 2026, but may delay to August 2026.)
• Maryland (employer and employee contributions beginning in January 2027, benefits start January 2028)
• Massachusetts (employer and employee contributions based on employer size)
• Minnesota (employer and employee contributions beginning in January 2026)
• New Jersey (optional state or private plan with payroll deductions)
• New Hampshire (voluntary participation in state plan beginning in October 2022)
• New York (private plan with payroll deduction from employees) 
• Oregon (employer and employee contribution; employer portion exempt for small employers)
• Vermont (voluntary private plan through Hartford insurance phased in July 2024 and July 2025)
• Washington (employer and employee contributions; employer portion exempt for small employers)

California has its own unpaid leave plan under the California Family Rights Act that provides additional coverage above that of the FMLA.

Savvy employers offer paid family leave because they understand that it’s a major concern, especially for employees who are both raising their own children and caring for older family members.

Paid Family and Medical Leave Laws by State in 2026

Paid family medical leave varies significantly across the country. The following charts outline leave laws for all 50 states and the District of Columbia, including which states have paid family leave programs, eligibility requirements, wage replacement rates, and job protection provisions.

Penalties for Family and Medical Leave Non-Compliance

Employers who fail to comply with federal FMLA requirements or state family and medical leave laws face significant penalties. Under federal law, violations can result in civil and criminal consequences.

Federal Penalties for FMLA violations

Employees may file complaints with the U.S. Department of Labor’s Wage and Hour Division or pursue private lawsuits seeking damages, including lost wages, benefits, and compensation for actual monetary losses.

As a result, courts may award liquidated damages equal to the amount of wages and benefits lost—plus attorney’s fees and court costs. In cases of willful violations, employers may face even higher fines and potential imprisonment.

State-Level Penalties and Enforcement

State-level penalties vary by jurisdiction but often mirror or exceed federal consequences. States with paid family leave programs enforce additional compliance requirements related to payroll contributions, benefit administration, and job protection.

Common state penalties include

• Monetary fines ranging from hundreds to thousands of dollars per violation
• Mandatory reinstatement of wrongfully terminated employees
• Payment of back wages with interest.

Anti-retaliation Consequences and Protections

Many states also prohibit retaliation against employees who exercise their leave rights, with separate penalties for discriminatory actions. Repeat offenders may face enhanced penalties, and some states maintain public databases of non-compliant employers.

Exceptions to Paid Family and Medical Leave Laws

Key Employees

The most notable exception applies to “key employees”—salaried workers who are among the highest paid 10 percent of all employees within 75 miles of their worksite.

Although key employees can still take FMLA leave and maintain their health benefits during that time, employers may deny job reinstatement if returning the employee would cause “substantial and grievous economic injury” to business operations.

Note: This exception requires strict compliance with notification requirements, and employers must provide written notice at the time of leave is requested and again if reinstatement is denied.

Eligibility Requirements

Some states with paid parental leave may also have specific eligibility requirements regarding employer size, hours worked, and length of employment that may exclude certain workers.

Small businesses with fewer than 50 employees within a 75-mile radius are generally exempt from federal FMLA requirements, and similar thresholds exist in states that offer paid family leave programs.

States’ Family Leave Employment Laws Vary

Maryland, Maine, and Delaware are the latest states to enact Paid Family Leave laws with a payroll tax component. Maryland will require employee and employer contributions to a state-paid leave fund beginning in January 2027. The total rate of contribution and percentage split between employees and employers will be 0.9% split evenly (0.45% each). Maryland residents will be eligible to begin receiving benefits in January 2028. 

Delaware’s legislation calling for contributions from employers and employees began in January 2025, and benefits will begin in 2026. Similar to the Paid Family and Medical Leave program in Massachusetts, payroll taxes are split between covered employers and employees, with the option for employers to pay the entire cost. Delaware employers pay 0.8% of their payroll into the fund with 0.4% going toward personal medical leave, 0.32% toward parental leave, and 0.08% toward family caregiving leave. Companies with 25 or more workers can elect to deduct half (0.4%) of their contribution from employees or pay the entire 0.8% themselves.

New Hampshire has also joined the mix with a unique voluntary insurance plan. Employers that choose to take part in New Hampshire’s paid family leave fund will be eligible for a corresponding tax credit on premiums paid. The state utilizes MetLife as the private insurer to administer the program. Vermont quickly followed its neighboring state passing a voluntary family and medical leave plan handled by Hartford Insurance. Vermont began phasing in availability in July 2024 and will complete coverage for all remaining employees with phase II in July 2025.

Wage replacement rates among the states range from 50–80%. California paid family leave provides a $1,620 per week maximum benefit and gives workers with lower earnings higher replacement rates. Washington, D.C.’s program has a maximum benefit of $1,118 a week.

Workers’ Compensation and FMLA

Workers’ compensation provides for healthcare and income replacement in the event of a workplace injury, and can overlap with FMLA. For example, an employee who sustains a workplace injury that is considered a “serious health condition” can be covered by both programs.

In this situation, the employer is required to provide leave under the law that provides the greater benefits to the employee. So, employers can’t require an employee to take time off under FMLA rather than getting Workers’ Compensation benefits if the injury makes them eligible. As more and more states get on board with providing family leave programs, HR will have many additional regulations to ensure compliance with. Paycor’s HR and benefits administration platform can help you manage these changes

Paid Family Leave Law FAQs

Have more questions about paid family and medical leave laws? Keep reading!