Paid family and medical leave

Definition

State-administered paid family and medical leave (PFML) programs provide partial wage replacement when employees take qualifying leave for their own serious health condition, family caregiving, or bonding with a new child. As of 2026, about 11 jurisdictions have active programs: CA, CO, CT, DC, MA, NJ, NY, OR, RI, WA, plus several states with programs coming online (DE, MD, ME, MN).

Funding mechanisms vary: most programs use payroll-deducted employee contributions; some include employer contributions; benefits are paid by the state. Eligibility, benefit duration, and wage replacement rates differ by state.

PEOs handle PFML for the co-employed workforce — correctly withholding contributions, coordinating claims with state agencies when employees apply, and managing the job-protection requirements that overlap with federal FMLA.

Common questions about Paid family and medical leave

Related terms

• Family and Medical Leave Act (FMLA) — A federal law giving eligible employees up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons.
• Paid sick leave — State or local laws requiring employers to provide paid time off for employees' or family members' health needs.

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