FAQ Friday Category State and Local

What should an employer consider when offering an employer-provided short-term disability plan to employees in a state that mandates disability insurance? (e.g. temporary disability insurance (TDI) or paid family and medical leave (PFML))

Employers must consider several factors related to their short-term disability (STD) program such as costs, employee experience, and the work location of their employees, including virtual/remote employees. In states with a statutory disability program, employers must also consider: Whether to…

With the upcoming removal of the taxable wage limit for contributions for California state disability insurance (SDI) and paid family leave (PFL), does it make sense to consider moving to a voluntary plan in California?

There are still several other factors to consider before deciding to move to voluntary plan administration for California SDI and PFL; however, this change could make it more viable for some employers to move to voluntary plan administration. Senator Gavin…

When a new state leave law passes and requires “employers with 50 or more employees” to comply, does it mean employers that have at least 50 employees working in that state or employers with 50 total employees regardless of location?

Every state law is different so it’s important to review any new leave law details and definitions before making a definitive determination. However, new unpaid leave law legislation can often be vague regarding determination of employer size. It is safest…

What are you seeing employers do when they “may” take an employee deduction for a statutory plan? Are employers requiring their employees pay the full contribution or are there cases when employers are contributing to some or all of the employee share?

There isn’t a “one-size-fits-all” answer to this question as it can depend on a number of factors, including company culture. There are a few key things to consider if you are facing this question. While there is not necessarily a…

When you are certifying a private paid family and medical leave (PFML) plan to be at least as rich as the state PFML plan, does that mean that the benefit dollars as well as the duration have to be equal to or greater than the state plan? Or do you just have to demonstrate actuarial equivalence?

A private plan must meet or exceed all requirements set forth in the state plan regulations. This can mean individually or a combination of benefits, duration, eligibility, or other provisions of the plan. All private plans must be filed and…

Some state paid family and medical leave (PFML) regulations are broadening the definition of a family member to include those who are “like a family relationship”. Are employers able to validate these affinity relationships? And if so, how?

While the documentation requirements may differ from state to state based on regulations, for purposes of confirming the family relationship type of affinity, we expect this to follow the same lines as the Family and Medical Leave Act (FMLA). Documentation…

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VP, Disability & Leave Operations

BROADSPIRE

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Alice Cotti

VP, Government Segment Business Solutions

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Seth Turner, Chief Strategy Officer
Seth Turner

Chief Strategy Officer

ABSENCESOFT

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