One of the many responsibilities of a business owner is staying up-to-date on employment laws and regulations. By remaining compliant, they can ensure the safety and welfare of their employees, build trust with customers, and avoid fines and potential litigation.
One important labor law to brush up on is Paid Family Medical Leave (PFML). PFML enables eligible employees to take paid leave from work to recover from serious illnesses, care for sick or injured family members, and bond with their newborn or newly adopted children.
While Paid Family Medical Leave is currently offered in a few states, this is a growing area of new law and it’s estimated that many states will have some type of PFML program by 2030. Some proposals for national Paid Family Medical Leave programs are also in the works.
This article will cover the basics of Paid Family Medical Leave programs and discuss how you can easily implement PFML at your company.
In many ways, Paid Family Medical Leave programs are similar to the federal Family and Medical Leave Act (FMLA). The FMLA Act was put into effect in 1993. Since then, employees who meet eligibility requirements, such as being employed by companies with over 50 employees are entitled to up to 12 weeks of unpaid, job-protected leave for specific medical and family-related reasons. Some of these reasons include:
While the FMLA Act protects employees’ positions at their companies, it doesn’t guarantee them any income. Thus, many employees still struggle to afford time away from work. The Pew Research Center found that 40% of employees who took FMLA leave used less time than they needed due to financial concerns.
In contrast, Paid Family Medical Leave programs enable workers at companies of all sizes to take time off for family or medical purposes while still receiving a portion of their paycheck.
Here are some crucial factors of PFML programs that affect your employees:
Now that you understand the employee side of PFML, you may be wondering how it impacts your role as an employer. Employers have many responsibilities when it comes to Paid Family Medical Leave, including:
To that last point, employer contribution requirements are determined differently in each state. Factors affecting your contribution amount can include your employee count and your state’s contribution wage cap.
As we’ve discussed, only a handful of states currently have PFML programs. These states include:
If your company is located in a state that’s already implemented a PFML program or has one underway, you’ll want to ensure you’re in compliance as soon as possible. If your state doesn’t have a PFML program yet, it likely will soon. However, navigating the implementation process can be challenging, so here are some key factors to keep in mind:
Overall, implementing a PFML program requires careful planning. But, providing PFML benefits can help attract and retain talented employees and improve employee morale and productivity. As a small business owner, it's essential to weigh the costs and benefits to find a solution that works for you and your employees.
Once you’ve implemented a PFML program at your company, the work doesn’t stop there. To stay in compliance with all relevant federal and state laws, you should continue to:
Staying on top of these tasks will help ensure compliance and give your employees access to the benefits they need.
If you're a small business owner, you know how challenging it can be to keep up with complex and ever-changing regulations.
The good news is that you don't have to navigate Paid Family Medical Leave compliance alone. By partnering with BBSI, you can get expert support to help you navigate these regulations and avoid common pitfalls.
At BBSI, we offer comprehensive support to help our clients comply with all relevant PFML regulations. Our team can assist you with payroll, workers’ compensation, benefits, human resources, and business consulting. With our help, you can streamline compliance and focus on growing your business. Reach out to your local BBSI team today to learn more.