Children and Families: State Policies on Paid Family Leave

Thirteen states and Washington, D.C. have passed laws creating programs that offer eligible workers at least six weeks of paid family and medical leave. The district, California, Colorado, Connecticut, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Washington have fully operational programs. Delaware, Maine, Maryland and Minnesota will begin paying benefits in 2026.

Most low-income parents lack access to paid leave programs. Workers who earn less are less likely to have access to paid leave through state-mandated or employer-initiated programs, compared with those who earn more, according to the Bureau of Labor Statistics.

Paid family leave promotes healthy infant development. At least six weeks of paid family leave reduces infant mortality, increases breastfeeding rates and allows moms and dads to bond with their child, according to the Prenatal-to-3 Policy Impact Center.

Paid family leave eases the financial burden of having a child. The cost of welcoming a new baby adds up quickly. According to the Institute for Women's Policy Research, providing paid leave programs significantly reduces the economic strain on families after childbirth. Moreover, it helps maintain household income by encouraging mothers to remain in the workforce, helping families to thrive during this pivotal time.

Parents must meet certain earnings or hours requirements to obtain paid leave benefits. In an analysis of six state paid parental leave programs, the Niskanen Center estimated that 20-28% of women were not eligible for their state's paid parental leave program.

Include foster and adoptive parents in paid leave programs.

• The district and all 13 states that mandate paid family and medical leave provide the same benefit to foster and adoptive parents. Under Kentucky's voluntary paid family leave program, employers that provide paid family leave must offer the same benefits to both adoptive and birth parents.
• South Carolina allows eligible school district employees to take paid parental leave to foster a child.
• Michigan enacted legislation in 2022 that, subject to a legislative appropriation, would offer a tax credit to employers offering paid leave for adoption.

Start with parents who work in the public sector.

• Oklahoma teachers and other qualifying public school employees are entitled to six weeks of paid maternity leave.
• Government employees in Puerto Rico can take up to 16 weeks of paid maternity leave to rest before childbirth, recover after childbirth and care for their child. Employees can also receive up to 15 days of paid paternity leave to bond with their child.

Update insurance laws to promote employer-sponsored paid family leave.

• Alabama, Arkansas, Florida, South Carolina, Tennessee, Texas, Kentucky and Virginia enacted legislation clarifying that insurance companies can offer employers family leave insurance policies.

Create opportunities for employers to voluntarily offer paid leave to their employees.

• New Hampshire's Granite State Paid Family Leave Plan, a voluntary family medical leave insurance program, offers eligible workers a 60% wage replacement for up to six weeks. Participating employers are also entitled to a tax credit that equals 50% of the premium the employer pays.
• Vermont hired a private company to create a voluntary paid family and medical leave insurance program. Vermont's program was established by its executive branch, and the implementation was funded through legislative appropriations.

Consider various wage replacement options when implementing paid leave programs.

• New Jersey replaces wages at a fixed percentage rate. In 2018, the state raised the wage replacement rate from 67% to 85% of a worker's average weekly wage. The replacement rate is capped at 70% of the statewide average wage.
• Colorado calculates wage replacement benefits on a sliding scale based on income. Wage replacement starts at 90% for low-income workers, and weekly benefits are capped for all workers at 90% of the statewide average weekly wage.