Paid Leave Landscape

These programs provide eligible workers with partial wage replacement when they need to take time away from work for qualifying reasons. While specific eligibility requirements vary by state, programs generally allow workers to take leave to:

• Care for their own serious health condition
• Care for a family member with a serious health condition
• Bond with a newborn, newly adopted, or newly placed foster child

Funding structures also vary by state, but most programs are supported through dedicated payroll contributions. These contributions may be funded entirely by employees, entirely by employers, or through a shared contribution model between both. Contribution rates are typically set in statute and may be adjusted over time based on program experience, utilization, and solvency considerations.

In this model, a private insurance company sells a paid leave product to an employer, with some limited state regulation but without standardized pricing or coverage. 

The National Conference of Insurance Legislators (NCOIL) adopted model legislation that created a loose framework for states to authorize paid family leave insurance sales. The model bill projects that insurers currently offering disability insurance products are positioned to expand their offerings to paid family leave insurance.

Features of the model legislation include:

• The model legislation outlines qualifying reasons as child bonding, family caregiving, military exigencies, caring for servicemembers injured in the line of duty, and other reasons specified by the policy of insurance. 
• Qualifying family members include spouses, parents, children, or others defined by the insurance policy.
• The suggested minimum leave is two weeks, with insurers determining wage replacement rates, benefit caps, waiting periods, and exclusions. 

States have made modifications to these guidelines when adopting them; check state laws for details.

TDI's give workers access to partial pay if they are unable to work due to a non-work-related medical need. 

Due to the more limited scope of these programs, they are often not included in the count of paid family and medical leave programs.

Rhode Island, California, New York, and New Jersey have expanded their programs to include parental and caregiving leave. 

Under this model, a state contracts with a private insurer to offer a standardized, opt-in paid leave product to employers and potentially individuals. 

In New Hampshire, the program offers a tax incentive for businesses that participate. MetLife was chosen as the insurer. State employees, private employers, and individuals may choose to enroll. The program is voluntary for non-state employees and leverages private sector administration under terms set by the state.

Vermont created a similar program. After a bidding process that received three applications, Vermont selected The Hartford, which implemented a phased rollout with state employee coverage starting in July 2023, employer purchase of coverage starting in July 2024, and individual purchase of coverage starting in July 2025.

Safe Leave

Paid safe leave allows workers and their loved ones to pursue safety related to covered acts of violence. While the exact scope varies, states allow leave to be used to:

• Access supportive services, such as those from a victim services organization
• Relocate to safe housing
• Attend (or, typically, prepare for) legal proceedings
• Receive medical attention connected to a covered act of violence
• Receive counseling or mental health care related to the violence

In addition to these specific purposes, most states authorize leave to access legal services or assistance more generally. The weekly benefit amount, duration of leave, and other details are also state-specific. People receiving paid leave benefits through a state paid leave law may be eligible for additional protections under federal and/or state FMLA.

Military Leave

Several states offer paid family and medical leave to address the circumstances military families face. In addition to other types of paid leave, members of military families may be eligible for the following types of leave:

• Military caregiver leave: generally, can be used to care for an injured or ill service member or veteran.
• Military family leave (qualifying exigency leave): typically covers leave for activities related to a service member’s call to active duty or deployment. Qualifying activities may include assisting in making legal or financial arrangements for the service member’s absence, attending military sponsored events, certain childcare activities, activities related to care of the military member’s parent, and more. ¹