In contrast to the mandatory Paid Family and Medical Leave (PFML) programs that were implemented by various states such as California, Connecticut, Massachusetts, New Jersey and New York, other states have adopted a voluntary model, allowing employers to “opt-in” to providing a PFML benefit.

Virginia Paid Family Leave (PFL)

Virginia was the first state to implement a voluntary Paid Family Leave (PFL) program, which became effective on July 1, 2022. Insurance carriers can offer voluntary, fully insured benefits in a rider to a Short-term Disability policy, included in a Short-term Disability policy, or as a standalone policy. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition.

Employers who choose to offer this benefit can purchase a policy through MetLife and can find more resources about the program on our Sequoia Foreword Blog: Virginia Passes Law Enabling Employers to Voluntarily Provide Paid Family Leave Insurance.

New Hampshire Paid Family and Medical Leave (PFML)

New Hampshire’s voluntary Paid Family and Medical Leave (PFML) program became available on January 1, 2023. New Hampshire employers and eligible workers now have an opportunity to purchase a paid leave plan that provides up to 60% wage replacement for up to six weeks annually for covered common life events such as child bonding due to birth/adoption or for serious health condition(s) of a family member. Additionally, employers who purchase New Hampshire PFML are eligible to receive a Business Enterprise Tax (BET) credit of up to 50% of the paid leave premiums. New Hampshire PFML is available through the state’s PFML insurance partner, MetLife.

Alabama Paid Family Leave Insurance (PFLI)

As of August 1, 2023, insurance carriers can offer an approved PFLI product to employers in Alabama on a voluntary basis. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition.

Arkansas Paid Family Leave Insurance (PFLI)

As of August 1, 2023, insurance carriers can offer an approved PFLI product to employers in Arkansas on a voluntary basis. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition.

Florida Paid Family Leave Insurance (PFLI)

As of September 1, 2023, insurance carriers can offer an approved PFLI product to employers in Florida on a voluntary basis. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition.

Tennessee Paid Family Leave Insurance (PFLI)

Starting on January 1, 2024, insurance carriers can offer an approved PFLI product to employers in Tennessee on a voluntary basis. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition. Tennessee employers may be able to receive an excise tax credit based on the amount of paid leave benefits issued to employees.

Texas Paid Family Leave Insurance (PFLI)

Starting on January 1, 2024, insurance carriers can offer an approved PFLI product to employers in Texas on a voluntary basis. Covered employees may receive coverage for certain life events such as birth/adoption of a child or to care for a family member with a serious health condition.

Vermont Paid Family and Medical Leave Insurance (FMLI)

Starting on July 1, 2024, Vermont’s voluntary paid Family and Medical Leave Insurance (FMLI) program will provide at least a combined six weeks of paid leave benefits in a 12-month period for certain life events such as the birth/adoption of a child or to care for a family member with a serious health condition. Details of the program offering are still to be determined; however, the available options will include benefits payable for at least 60% of employees’ average weekly wages up to the Social Security Base Benefit Limit. Vermont has chosen to work with The Hartford to provide the insurance benefit.

Employer Action

Employers who would like to offer any of the above voluntary benefits may reach out to Sequoia and/or any state-approved carriers to select from plan design options that will support their employees’ needs. Employers should note that the benefits outlined above are optional and not required. Further, these are the voluntary plans available at this point in time and these laws and regulations are subject to change over time.

Additional Resources

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog. © 2023 Sequoia. All Rights Reserved.

Tina Barile — Tina is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Tina enjoys being with family, cooking, reading, and playing sports.