As of January 1, 2025, 12 states and the District of Columbia have enacted a mandatory Paid Family Leave (PFL) program. Multi-state employers with employees located or reporting to sites located in California, Colorado, Connecticut, Delaware, Washington D.C., Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, and Washington should be aware of these programs and their requirements to avoid potential penalties.

The latest focus (from a regulatory perspective) has been on updates issued for Colorado and Maine, adjustments to existing laws in California and Washington D.C. and pending legislation within the Maryland Senate that could once again delay Maryland’s PFL provisions. Continue reading for a summary of recent updates and important reminders.

Colorado

Colorado’s Division of Family and Medical Leave Insurance (FAMLI) (the Division) has added a comprehensive penalty scheme within the recently revised regulations, including the following:

  • Program Notice requirement: The benefits and notice requirement has a new $500 employer penalty per violation for failure to post or deliver the Program Notice. As a reminder, this Notice must be posted by the employer in a prominent, visible workplace location to inform workers about the FAMLI Program, as well as provided to all employees localized in Colorado upon hire or within 30 days of the effective date of the plan.
    • At a high-level, the Program Notice for employees must be a written notice that may be delivered to employees electronically, in person or via mail. The written notice will include information about the plan, including but not limited to:
      • The effective date of any approved private plan, which is the date the employees can file claims with the new carrier.
      • Descriptions of the plan’s wage-replacement benefits, leave and employment protection benefits, eligibility determinations, contribution strategies, and claims process for employees including employee appeal rights.
      • Contact information for the FAMLI Division and the plan administrator.
  • Benefits: There is a potential $500 per employee, per day penalty for failure to maintain health benefits during leave and potential $50 per employee, per day penalty for failure to comply with the coordination of benefits rule.
    • At a high level, the coordination of benefits rule requires employers to maintain an employee’s benefits and also states that employees are not required to use Paid Time Off (PTO) before FAMLI leave, though they may choose to do so, and that employers may count both the FAMLI wage replacement amount and the duration of FAMLI leave towards the limits included in their short-term or long-term disability policies, so long as the employer first gives written notice to employees.
  • Additional revised regulations outline overpayment recovery efforts and clarifications that employers with different FEINs will be considered different employers with separate rights and obligations.
  • Private plan option: Private plan coverage must be specifically requested by employers and will not be effective until 30 days after the private plan is approved by the FAMLI Division. A $250 penalty applies if the private plan’s information is not provided to an employee within seven days of a request.

As a reminder, employers have the option to meet FAMLI obligations by using an approved private plan, but they are not required to do so. A private plan must cover all employees and provide the same or better benefits, protections, and rights as the state plan. Employers that already have a structured leave program in place that they want to expand upon or integrate with the FAMLI benefits may do so through private plan options. Private plans may offer a smoother administrative process including onboarding and claim handling, but a private plan will typically be more of a lift for an employer.

To offer a private plan, employers must first register with the Division and then may apply to use a private plan. Employers applying must:

  • Pay a $500 administration fee.
  • Provide proof of purchase of a state-approved carrier plan or completed Self-Insured Private Plan template, proof of surety bond and benefit claim forms.
  • Provide a copy of their Program Notice for employees with an effective date no earlier than 60 calendar days from the date the private plan application is submitted.

Employers with a private plan must also submit quarterly summary reports for the previous calendar quarter. These administration summaries must be submitted by an employer by the last day of the month immediately following the end of the calendar quarter being reported. The next deadline for employers with a private plan to file is April 30, 2025.

Maine

Maine issued final regulations and provided further guidance under its paid family and medical leave (PFML) mandate that include the following:

  • Employer registration: All covered employers must register online for the PFML program.
  • Employer contributions headcount: The regulations clarify that the 15-employee threshold for employer contributions is based on each FEIN.
  • Employers must submit wage reports quarterly through the Maine Paid Leave Portal on or before the last day of the month following the end of each quarter.
  • Private plans : An FAQ update clarifies contribution rules and addresses the application process for private plans.
    • Starting April 1, 2025 , applications for private plan substitution may begin to be submitted online by an employer through the Maine Paid Leave Portal. Employers must pay a $250 application fee for review which is non-refundable whether the application is approved or denied. If approved, there is an additional $250 administrative cost reimbursement fee. An approved submission is valid for three years.
    • Maine Department of Labor (MDOL) will not require contributions to the state as of the first day of the quarter in which private plan approval occurs, as long as MDOL receives the application at least 30 days before the end of the quarter. Otherwise, the contribution exemption is effective on the first day of the next quarter, if approved.
    • Failure to file quarterly wage reports and/or the annual data report due by July 1 of each year may result in loss of the private plan substitution.
      • At a high level, an annual data report outlines performance metrics of the private plan and must be submitted via the Main Paid Leave Portal.

California

California’s Employment Development Department (EDD) finalized regulations that are now in effect, which certify that military qualifying exigencies are a permitted use of PFL benefits. These updated regulations require the completion of the military assist certification within Part E of the Application for Paid Family Leave only when applying due to a family member’s military deployment. EDD clarified that no more than one care provider may claim PFL benefits for a qualifying exigency in an eight-hour period and no more than three care providers in a 24-hour period. Updated regulations from EDD also remove requirements for claimants to verify social security numbers.

Washington D.C.

Washington D.C. further extended a provision under its Universal Paid Leave (UPL) law related to short-term disability insurance. Under the rule, no insurer may offset or reduce benefits or income available to an eligible individual under a temporary or short-term disability insurance policy based on estimated or actual benefits an eligible individual may receive under UPL.

Maryland

Maryland is proposing a program PFL implementation delay, as follows:

  • Maryland Family and Medical Leave Insurance (FAMLI) will be funded by premiums paid by employees and employers with fifteen or more employees through a payroll tax that was set to have contributions beginning July 1, 2025, with employee benefits available beginning July 1, 2026.
  • Pending legislation proposes extending the implementation timeline that will instead have contributions beginning on January 1, 2027, and employee benefits available beginning January 1, 2028.

We will continue to monitor and communicate any changes in the Maryland legislation.

Employer Action

Employers, particularly multistate employers, should pay close attention to any developments and updates that impact their employees working in the jurisdictions outlined above.

Depending on the effective date, employers are advised to utilize the tools and resources available within the Compliance Checklist and work with their employment and labor counsel to:

  • Review and update leave policies, procedures, and practices, as necessary.
  • Review and update attendance and payroll systems, as necessary.
  • Communicate any applicable paid leave/PFML updates to employees in a timely manner.

Resources

Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and 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. © 2025 Sequoia Consulting Group. All Rights Reserved.

Séamus McGuire — Séamus is a Compliance Specialist for Sequoia, where he works with our clients to optimize and streamline benefits compliance. In his free time, Séamus enjoys riding rollercoasters, attending Broadway shows and traveling with his husband.