paid family and medical leave overview · 2021. 4. 8. · 6 paid family and medical leave overview...

DisabilityGroup Benefits

Paid Family and Medical Leave OverviewFebruary 2021

Navigating and complying with the various Paid Family and Medical Leave laws can be complicated — but it doesn’t have to be. This guide helps outline what you need to know for existing programs as well as for future programs to help be compliant. The information will help you understand how each of the states are implementing paid leave programs and what the future may look like.

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Paid Family and Medical Leave Overview

Table of ContentsPFML timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2020: A year in review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

PFML programs — far from the shallow end now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

States with sick leave laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

State plans with key dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

What does compliance look like? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

PFML coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

We are here to help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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PFML timeline

Statutory disability laws first appeared back in the 1940s when men were coming back from war and were considered the primary income source while women were expected to stay at home to raise a family. Todays families have a very different dynamic where it is common to have both parents working and adult age children still living in the same home, contributing to the household expenses.

In November 2020, Colorado’s general election voted in a state PFML program that included a state tax associated with the benefits. This reflects the public consensus that paid leave is necessary and workers are willing to make financial contributions to fund the benefit plans.

Given this change in dynamic, in recent years paid leaves have risen to the top of conversation within larger corporations and within our own governments to help mitigate a family’s financial risk if any income earner cannot work due to their own or a family member’s medical needs. The United States, Papua New Guinea, Suriname (the smallest country in South America) and a few island countries in the Pacific Ocean are the only countries in the United Nations that do not require employers to provide paid family leave for new parents.

Statutory Disability Laws Federal Statutory Paid Family

Statutory Paid Family & Medical Leaves

1940s RI, CA, NJ

1950s NY

1960s HI

1990s FMLA

2000s CA, NJ

2014 RI

2016 DC

2017 WA

2018 MA

2019 CT, OR

2020 CO

2020: A year in reviewWhat you need to know:

WA and DC started paying benefits for their PFML programs

MA started accepting applications for benefits in December for their official start date on January 1, 2021

CT launched their PFML website that included an Employer Registration section supporting their own governmental PFML program and published private plan guidelines supporting employers who already have similar benefits

A Federal program offering paid parental leaves to many government workers began in October

NY and NJ expanded their existing programs

CO PFML law was passed by general election

In total, 21 states discussed proposed PFML bills

COVID-19 temporary paid leave legislation led to many states adopting new or making permanent changes to their paid sick leave laws, which are different than these Paid Family and Medical Leaves.

2020 state legislation was filled with emergency orders to protect workers due to the unprecedented COVID-19 pandemic. The terms ‘quarantine’, ‘isolation’, ‘telemedicine’ and ‘alternative’ work locations are now a normal part of our business as usual. Employers are rethinking their business model to define a new normal, offering more permanent work from home opportunities.

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PFML — far from the shallow end now

ME

NY

NH

MA

RICT

VT

TN

NC

SC

GAAL

FL

MS

PR

LA

TX

NJ

DE

HI

DC

PA

MD

VAWV

KY

IN

OH

AR

ND

SD

NE

KS MO

MN

WI

IL

MI

IA

OK

MT

ID

NV

WY

CO

AK

NM

AZ

UTCA

OR

WA

Federal Workers

For Producer or Broker/Dealer Use Only Not for Use with the General Public

State Status

7 Approved and active

3 Approved – future start date

27 Proposed bill

8 Executive Orders

2 DI only

5 No plan at this time

MetLife OfferingsSelf-Insured and Insured

The Paid Family and Medical Leave Landscape As of March 2021

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ME

NY

NH

MA

RICT

VT

TN

NC

SC

GAAL

FL

MS

PR

LA

TX

NJ

DE

HI

DC

PA

MD

VAWV

KY

IN

OH

AR

ND

SD

NE

KS MO

MN

WI

IL

MI

IA

OK

MT

ID

NV

WY

CO

AK

NM

AZ

UTCA

OR

WA

Status

18 Approved states

27 Approved in municipalities

33 None

MunicipalitiesCA Berkeley

EmeryvilleLong BeachLos Angeles (2)OaklandSan DiegoSan FranciscoSanta Monica

IL ChicagoCook County

LA New Orleans

MD Montgomery County

MN DuluthMinneapolisSt. Paul

NM Bernalillo County

NY New York CityWestchester County

PA PittsburghPhiladelphia

TX AustinDallasSan Antonio

WA SeattleSeaTacTacoma

States with sick leave laws

Sick leaves are for the immediate need. They normally replace 100% of wages and are available without certification such as from a doctor or providing proof of absence. On the other hand, Paid Family and Medical Leaves are designed for the longer absence, up to 26 weeks and do require certification that the absence has merit. PFML normally provide a percentage of an employee’s wages to encourage them to return to work.

State mandated (also referred to as statutory) Paid Family, Own Medical, and Disability leave laws are typically designed to provide basic benefits to ‘all’ workers in their jurisdiction; therefore, we see differences in each state’s plan designs, funding, and eligibility.

States are providing guidance on minimum standards for PFML programs that help smaller employers compete for and retain talent by providing benefits many larger Employers already provide their Employees.

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Activity in 2021 —

• VA DI law expansion (VA SB 567) to include 12 weeks of paid maternity leave for birthing mothers — effective 7/1/2021.

• CT and OR regulations build out for their own state programs. Both offer private plan opt outs if an employer does not want to use the state administrative program. CT allows insured and fully insured; OR offers self-insured only.

• PA, ME, NH, and VT have had strong support for state PFML programs. Northeast states have always competed for a skilled workforce, therefore paid leave programs are top of mind for the state’s new legislators.

• HI PFL may be slower than expected due to the state’s economy heavy dependence on travel/vacation which was halted during COVID-19.

Region 2020 November Workforce (thousands)*

California 13,764

Colorado 2,252

Connecticut 1,375

District of Columbia 506

Hawaii 439

Massachusetts 2,935

New Jersey 3,320

New York 7,385

Oregon 1,552

Rhode Island 403

Washington 2,761

SUM PFML/DI States 36,698

TOTAL US Workers 121,197

*Source: https://fred.stlouisfed.org/series/USPRIV

30%of US workers to be covered under Statutory DI, PFL or PFML Laws by 2024*

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State Paid Sick Leave Paid Disability Paid Medical Paid FamilyAlabama Alaska Arizona Yes Arkansas California Yes (plus municipalities) Yes YesColorado Yes Yes YesConnecticut Yes Yes YesDelaware District of Columbia Yes Yes Yes

Florida Georgia Yes Hawaii Yes Idaho Illinois Yes (plus municipalities) Indiana Iowa Kansas Kentucky Louisiana Municipalities Maine Yes Maryland Yes Massachusetts Yes Yes YesMichigan Yes Minnesota Municipalities Mississippi Missouri Montana Nebraska Nevada Yes New Hampshire New Jersey Yes Yes YesNew Mexico Municipalities New York Yes (plus municipalities) Yes YesNorth Carolina North Dakota Ohio Oklahoma Oregon Yes Yes YesPennsylvania Municipalities Rhode Island Yes Yes YesSouth Carolina South Dakota Tennessee Texas Municipalities Utah Vermont Yes Virginia Washington Yes (plus municipalities) Yes YesWest Virginia Wisconsin Wyoming

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State plans with key PFML dates

State Plan Name Key Dates MetLife’s Solution

VA • 38.2-3407.11:4. Disability arising out of childbirth; minimum benefit

• July 1, 2021 • STD policies in Virginia will be updated with the new minimum benefit providing at least 12 weeks of benefit immediately following childbirth for such a disability

MA • Paid Family and Medical Leave (MA PFML)

• Job Protection: Yes

• January 1, 2021 — Benefits start for child bonding, the employee’s own medical and military leaves

• July 1, 2021 — All benefits available including PFL to care for family member with serious health condition

• Annual updates published in October

• Fully insured and self-insured coverage available

NJ • Temporary Disability Insurance (TDI)• Family Leave Insurance (FLI)• Job Protection: No

• Annual updates published in November

• TDI — Fully insured and self-insured coverage available

• FLI — None

CA • Disability Insurance (DI)• Paid Family Leave (PFL)• Job Protection: No

• January 1, 2021 — adding military exigency as an approved leave type under paid family leave

• Annual updates published in November

• Self-insured administration available for Voluntary Disability Insurance (VDI) and Voluntary Paid Family Leaves (VPFL)

NY • Disability Benefit Law (NY DBL)• Paid Family Leave (NY PFL)• Job Protection: DBL — No, PFL — Yes

• Annual updates published in September

• Fully insured and self-insured coverage available

WA • Paid Family & Medical Leave (WA PFML)

• Job Protection: follows FMLA


• Self-insured administration

CT • CT Paid Family and Medical Leave (CT PFML)

• Job Protection: No

• January 1, 2021 — Employee premium assessment begins

• January 1, 2022 — Benefits payable

• TBD due to newness of law

OR • OR Paid Family and Medical Leave (OR PFML)

• Job Protected: Yes

• September 1, 2022 — Final regulations due

• January 1, 2022 — Premium payment start

• January 1, 2022 — Benefits payable

• TBD due to newness of law

DC • Universal Paid Leave (UPL)• Job Protection: No

• Annual updates expected in October

• (the original plan effective 7/1/2020 – 10/1/2021)

• Does not allow external plans

HI • Temporary Disability Insurance (TDI)• Job protection: No

• Annual updates published in December

• Fully insured Temporary Disability Insurance

RI • Temporary Disability Insurance (TDI)• Temporary Caregiver Insurance (TCI)• Job Protection: No


• State does not allow external plans

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What does compliance look like?Statutory Paid Family, Medical, or Disability leave and benefit laws are designed to provide basic benefits to all. Compliance can be categorized into four primary areas: Eligibility, Funding, Benefits, and Administration.

BenefitsBenefits for the own medical or disability leaves are based on the employee’s own health condition; while paid family leave primarily means the leave is not for the employee’s own health condition but instead allows the individual time away from work due to a need to care for a family member with a serious health condition, to bond with a child, military exigency, or potentially for safety when the employee or family is the victim of violence. Benefit durations can range from 2 weeks in DC to as much as 12 months in California. Many states will align benefits to be taken concurrently with the unpaid federal FMLA and offer around 12 weeks.

As for how much of a benefit will individual workers receive, like costs, is based on their wages earned in the state. Many states have their benefits weighted so that lower income earners will receive a higher percent of wage replacement than higher income earners. For example, Oregon’s new plan will give workers 100% wage replacement, up to a cap, if they make 65% or less of their state’s average weekly wage.

AdministrationHow are the PFML programs administered?

• Seven states, including NJ, MA, CT and newly CO can have insured or self-insured plans. WA, CA, and OR can have self-insured plans.

• DC and RI programs are exclusively run through the jurisdiction/state and do not allow for private plan options.

• HI and NY wrote their statute so that private insurance would be the primary solution for coverage. In NY, approximately 95% of their statutory program is through private market offerings with only 5% of plans utilizing the State Insurance Fund.

EligibilityStarting with eligibility, statutory plans are different from employer sponsored plans. In most cases, they require every worker in the state to be covered. Which means that non-traditional workers such as part timers, people who are on temporary assignment, or 1099 contractors and former employees will be covered. It will be important for employers to identify the various types of workforce who are eligible to receive benefits under their statutory plans and be able to report them as required under the statutory law.

FundingSome state programs have state established pricing, such as New York which has a community rate for PFL, but market determined rates for its DBL program. Other states, like Connecticut and California, will both set the funding levels of their PFML programs to be 100% funded by the employee. In addition to the state programs some cities, such as San Francisco, have established their own PFML programs so that the employer will fund a top up benefit allowing workers to receive 100% of their normal pay when the leave is for child bonding.

Most states, like Washington, Massachusetts, Oregon, and Colorado, have a split funding method where both employees and employers contribute to the plan where funding limits are established utilizing either the State’s average wage or the Social Security Wage Cap.

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What does compliance look like? (continued)Similar Employer Responsibilities

PFML coordination

With the growing number of absence related leaves today, there is a need to coordinate state run PFML programs with federal and/or employer sponsored programs and that responsibility will fall on the hands of the employer and the employee.

When states allow for private insurance or self-insured programs, the insurer or administrator of these programs can harmonize all programs on behalf of the employer and employee, allowing for a seamless claimant experience.

Once Employers know they are mandated to provide the coverage and have identified their impacted employees, they have similar responsibilities regardless of the statutory state.

• Coordinate the payroll deductions or contributions required

• Submit quarterly reports to the state

• Inform Employees of their rights

• Ensure nondiscrimination and where applicable job protection, and

• Continue healthcare coverage for the workers while out on leave.

The complexity hits when they must do all of this for employees working in multiple states.

Did you know: One baby could mean 16* benefits for new parents* In California, one baby could mean 21 benefits


We are here to help

For your convenience, MetLife has organized a series of materials to assist in understanding PFML Statutory programs.

Metlife.com/PFML

PFML Landscape

Highlights for Statutory Compliance

Statutory Leave Benefit Guide

The information presented on this booklet is not legal advice and should not be relied upon or construed as legal advice. It is not permissible for MetLife or its employees or agents to give legal advice. The information on this brochure is for general informational purposes only and does not purport to be complete or to cover every situation. You must consult with your own legal advisors to determine how the specific state’s Paid Family and Medical/Disability Leave law(s) will affect you.

Metropolitan Life Insurance Company | 200 Park Avenue | New York, NY 10166L0221010963[exp0622][All States] © 2021 MetLife Services and Solutions, LLC.

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paid family and medical leave overview · 2021. 4. 8. · 6 paid family and medical leave overview...

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