PDA’s 2021 Industry Predictions – #2

Two new Paid Family and Medical Leaves made their debut on January 1st.

Written by Michael Cleveland, President

Maine and Massachusetts both passed Paid Family and Medical Leave laws that went into effect on January 1, 2021.

Maine — Earned Paid Leave

Massachusetts — Paid Family and Medical Leave

The addition of these two states brings the total to 11 states (plus the District of Columbia), that have (or will have) some sort of paid family leave law. Maine and Massachusetts have joined California, Colorado, Connecticut, New Jersey, New York, Oregon, Rhode Island, Washington, and Hawaii. The push for paid-leave has presented itself across numerous states. In fact, over the last several years, 21 additional state legislatures have taken up the debate over paid-leave.

The trend of job protection and paid-leave laws most certainly will continue and bears watching closely. Employers continue to seek alternate means to manage existing leave plans (FMLA, state, municipal, and employer sponsored plans). In fact, it’s almost become table-stakes for insurers to offer some sort of alternative to state-run plans (where acceptable).

One thing is for certain — the number and variation of state mandated plans will only increase in the coming years, and so it’s incumbent upon insurers to have a well-thought-out solution for employers as they seek to navigate the ever-changing paid-leave landscape.

Click here to read our other industry predictions.