Mid-Year Update on Paid Family Medical Leave
As the calendar year approaches its end, numerous state Paid Family and Medical Leave (PFML) programs across the United States are announcing modifications to their contribution rates and benefit structures. Approximately half of these programs are set to implement changes that reflect economic factors influencing the funding and sustainability of each state’s leave initiatives. Some modifications will come into effect immediately, while others will take effect on January 1, 2026. Stakeholders, including employers and employees, must stay informed about these alterations in order to effectively plan and adapt to the evolving landscape of family and medical leave.
Key Updates Across Various States
1. Colorado Family and Medical Leave Insurance (FAMLI)
Effective January 1, 2026, Colorado’s contribution rate will decrease from 0.9% to 0.88% of employee wages, contingent upon the U.S. Social Security Wage Base for that year. This change aims to relieve some financial pressure on workers while maintaining robust leave benefits. Additionally, the State Average Weekly Wage (SAWW) will increase to ,534.94 in July 2025, which will in turn raise the maximum weekly benefit to ,381.45.
2. District of Columbia Paid Family Leave
The District of Columbia is anticipated to raise its maximum weekly benefit from ,153, effective October 1, 2025. This adjustment aligns with planned increases in the minimum wage, which will rise to .95 per hour starting July 1, 2025.
3. Maine Paid Family & Medical Leave
For claims beginning on or after May 1, 2026, Maine will maintain its contribution rate at 1.0% of employee wages. The SAWW is set to increase to ,198.84 by July 1, 2025, with the maximum weekly benefit starting at the same figure once benefits become payable.
4. Paid Leave Oregon
Effective July 6, 2025, Oregon’s SAWW will rise to ,363.80, resulting in increased maximum weekly benefits for new claims to ,636.56.
5. Rhode Island Temporary Disability/Caregiver Insurance
In Rhode Island, the SAWW will increase to ,297.06, with the maximum weekly benefit climbing to ,103 or up to ,489 with dependency allowances for claims initiated on or after July 1, 2025.
6. Washington Paid Family & Medical Leave
Starting January 1, 2026, Washington plans to augment its SAWW to ,830. Consequently, the maximum weekly benefit for new claims will also increase to ,647.
Implications for Stakeholders
These adjustments reflect broader trends in labor economics and social policy, aiming to provide workers with the security of paid leave while also promoting workforce participation. Employers are encouraged to communicate effectively with their employees regarding these updates, ensuring compliance and clarity in navigating the benefits available to them. Policymakers, labor advocates, and businesses alike will benefit from understanding the implications of these changes, as they not only impact individuals but also the economic health of communities.
To navigate the complexities of these evolving PFML programs, employers and employees should stay proactive by reviewing state-specific updates and preparing for the changes that may affect their financial and family circumstances in the near future. As state policies continue to evolve, awareness and adaptability will be key in leveraging these benefits effectively.
