Key insights
- With more than 10 states already implementing Paid Family and Medical Leave (PFML) programs — and more on the way — employers must navigate a growing patchwork of laws.
- Determining which PFML laws apply to remote or mobile employees is one of the most difficult aspects of compliance. Coverage may depend on where an employee works or resides, and payroll systems often lack the sophistication to handle these nuances.
- Employers are advised to take a proactive approach to PFML laws including conducting internal audits to assess where employees live and work and evaluating payroll systems for accurate PFML withholding and remittance.
Get proactive strategies for Paid Family and Medical Leave.
As federal efforts to establish a national paid leave policy remain stalled, some states and municipalities are forging ahead with their own Paid Family and Medical Leave (PFML) laws. This decentralized approach has led to a rapidly evolving and complex regulatory environment for employers.
Explore the current PFML programs and what employers are required to do to comply.
Which states have Paid Family and Medical Leave laws?
As of 2025, over a dozen states have implemented PFML laws, including California, New York, New Jersey, Connecticut, Massachusetts, Washington, Oregon, and Rhode Island. New entrants like Delaware, Maine, Maryland, and Minnesota are set to launch their programs by 2026.
These laws typically provide partial wage replacement for employees who need time off due to:
- Their own serious health condition
- Bonding with a new child
- Caring for a seriously ill family member
- Supporting a family member on active military duty
Some states also include provisions for victims of domestic violence or public health emergencies.
Key PFML challenges for employers
Multi-state compliance and remote workforces
Each state’s PFML program has different eligibility criteria, contribution rates, benefit durations, and covered family relationships. Companies with employees in multiple states must comply with each jurisdiction’s rules, which may require separate payroll configurations, reporting systems, and employee communications. Some states assert jurisdiction based on where the employee performs work, not where the employer is located.
Tax implications and payroll withholding
PFML laws often require employers to submit quarterly wage reports, manage payroll deductions, and maintain compliance documentation. These tasks can be time-consuming and error-prone without proper systems in place.
Employers must register with each applicable state’s PFML program, file wage reports, and remit contributions. Non-compliance — even for out-of-state employers with remote workers — can result in penalties. Some states integrate PFML registration with unemployment insurance, while others require separate processes.
Local considerations
Some states allow employers to opt out of public PFML programs if they offer equivalent or better private plans. However, this requires detailed documentation, state approval, and annual certification.
Cities such as San Francisco have enacted supplemental paid parental leave laws, requiring employers to top-up state benefits to provide full wage replacement. These local rules add another layer of complexity for employers operating in multiple jurisdictions.
Voluntary group family leave insurance is now available in several states.
PFML strategies for employers
Employers — especially those with multistate operations — are advised to take a proactive approach to PFML compliance. Key steps include:
- Conducting internal audits to assess where employees live and work
- Evaluating payroll systems for accurate PFML withholding and remittance
- Monitoring legislative changes as new PFML laws are enacted
- Educating HR, legal, and payroll teams for coordinated compliance
- Avoiding misclassification or double payment through clear policy alignment
How CLA can help with Paid Family and Medical Leave laws
As paid leave laws continue to evolve, CLA’s HR consulting and outsourcing professionals can help you evaluate how these changes impact your organization, update your policies accordingly, and communicate effectively with your employees.
Whether it’s strategic guidance on leave practices or full-service administration of leaves of absence, our team offers tailored support to meet your needs.
CLA cannot and does not provide legal advice. It’s important to consult with qualified counsel before adopting any new policies. It’s also your responsibility to determine whether legal review of work product is necessary prior to implementation.
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