CRS Reports on Paid Family and Medical Leave in the US

On September 25, 2023, the Congressional Research Service (CRS) published a comprehensive report on Paid Family and Medical Leave (PFML), incorporating studies and statistics published by the Bureau of Labor Statistics and other research organizations. This report:

• Provides an overview of PFML in the US.
• Summarizes the current state-level PFML program provisions.
• Provides examples of some large employers’ leave programs.
• Describes recent federal legislative action to increase access to PFML.
• Reviews PFML policies in other advanced-economy countries (OECD).

State-Run PFML Programs
The report discusses that among the state-run PFML and temporary disability insurance programs that are currently enacted, there are significant differences in benefit durations, benefit amounts, eligibility terms, contribution amounts, and availability of job protection during PFML leave. For instance, the weekly benefit amounts range from 50% to 100% of an employee’s average weekly earnings, and the maximum weekly amount ranges between $170 per week for New York disability insurance and $1,620 per week for California paid family leave and disability insurance in 2023.

Employers’ Leave Policy
While short-term disability insurance that covers an employee’s serious health condition and disability is widely available, family leave insurance is not generally available from private insurance companies. Few states, such as Arkansas and Virginia, have enacted laws establishing family leave insurance as a class of insurance in the state. As a result, many employers seeking to provide leave for family caregiving or parental leave (i.e., bonding leave) must provide the leave benefit directly rather than through insurance.

Federal Initiatives
The IRS currently provides a tax credit for employers who provide PFML to their employees. This temporary incentive is scheduled to expire at the end of 2025. Proposals to expand national access to PFML have been recently introduced in Congress. For example, the Family and Medical Insurance Leave Act (FAMLI) proposes a national wage insurance program for persons who are engaged in family caregiving activities, who are unable to work as a result of their own serious health condition, or for needs related to domestic violence, sexual assault, or stalking. The FAMLI Act also proposes to provide benefits to individuals with certain military family needs. Using a different approach, the Expanding Small Employer Pooling Options for Paid Family Leave Act of 2021 would have allowed multiple employer welfare arrangements (MEWAs), as covered by the ERISA, to include PFML benefits, which may potentially create additional opportunities for certain employers to pool risk and affect the costs of providing such benefits.

As more states are implementing their PFML programs, it is particularly important for multistate employers to verify the applicability of any state PFML programs and understand their compliance obligations with respect to each state’s PFML program. This report includes helpful comparison charts and resources of state-run PFML programs, which may be helpful for employers to understand the differences among state-run PFML programs and to create an employer’s leave policy that complements the state-run PFML programs.

CRS Reports on Paid Family and Medical Leave in the US, September 2023 »