Does Offering a Private PFML Plan Make Sense?

By Breanna Scott, CLMS, Paid Statutory Senior Product Manager, New York Life Group Benefit Solutions

As more states pass paid family and medical leave (PFML) laws and the number of remote workers increases, employers are weighing the pros and cons of state program administration and private PFML plans. Because state programs vary significantly in structure, administrative practice, compliance requirements, and the types of private plans that are permitted, there is no easy answer for determining how to evaluate paid statutory plans. However, there are several factors that employers can consider to help inform their decision.

Where Do Your Employees Work and What Is Required in Those States?

Statutory disability, paid family leave (PFL), and PFML programs are commonly mandated for employees working in states where PFML laws have been passed. New Hampshire and Vermont are the first two notable exceptions as their programs are voluntary for most employers. Availability is typically driven by where the employee works, and where unemployment insurance taxes are paid, but not necessarily where an employee lives.

Statutory disability, PFL, and PFML programs will be available in at least 16 states as of Jan. 1, 2026, based on recently passed legislation.

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