The push for better work-life management gained traction at the beginning of the COVID-19 pandemic, and even as workers return to the office, a growing number of states are interested in improving that balance for their citizens. Minnesota and Maine are the most recent states to take steps toward that goal by enacting Paid Family and Medical Leave (PFML) programs. In contrast to the Family and Medical Leave Act, a federal program guaranteeing unpaid leave, PFML is determined by states and allows qualifying individuals to take a certain number of weeks as protected paid leave to care for a family member or address their own medical concerns. These programs have many benefits for both employers and employees, yet their atypical nature complicates their design and implementation. As a result, states looking to implement a PFML program have several considerations to keep in mind to maximize success.
13 states and the District of Columbia have successfully enacted PFML legislation so far, with 12 of the programs currently distributing benefits and two still in the program implementation process. States with active programs have provided data demonstrating both their efficacy and their necessity. In 2023, only 27 percent of workers had access to paid family leave to bond with a new child or care for a sick or injured family member. Lack of paid leave has been tied to higher maternal and infant mortality rates, decreased labor force participation, lower productivity rates due to chronic illness, and high job turnover rates. On the other hand, paid parental leave is linked with lower rates of postpartum depression, reduced infant hospital admissions, increased economic stability for families and improved health outcomes for children through elementary school. A study of cancer patients and survivors also found that participants with paid medical leave had significantly increased chances of completing treatment and managing side effects, as well as expanding treatment options.
The myriad benefits of PFML are significant, but states must also consider the challenges to implementing such a unique program. Unlike other, related, programs, such as unemployment insurance, PFML is entirely state-run with no support from the federal government. This gives states the flexibility to build a program that meets their constituents’ needs, but it also means that because no two states are exactly alike in population and need, there is no template or exact precedent to follow. According to Admira Makas, Paid Family and Medical Leave Subject Matter Expert at TCS, this uniqueness is why it’s so important that states are diligent in choosing a technology partner for their program. “What you’re aiming for is finding the expertise,” she explained. “You need a partner with deep program understanding who can consult with you on what your program needs, how it should be structured, and provide you with the technology solution to be able to administer it successfully.”
Another challenge Makas identified is the deadlines associated with standing up new programs. There is a set start date for tax collection to fund the program, and a set date to begin disbursing the benefits back to the population. Within that timeline, a large number of staff has to be onboarded, which often means training them to work with a system that is still being developed. One option to overcome this is a mixed staffing model, in which state employees work alongside staff from partners to help facilitate employer registrations, assign tax rates, and process initial claims. Not only does this enable state staff to learn directly from the creators of the system, but partner staff can also act as a safety net, maintaining critical processes while state staff learns from the early stages of the program’s launch.
For states to dedicate the time and resources to developing a new program, it must come with some promise of longevity. Ensuring the new system is both configurable and scalable is critical. “States need the ability to make small adjustments to the system as program needs, regulations, and legislation change without a large-scale overhaul,” Makas said. She explained that legislation often adjusts tax or benefit rates, and as the program expands, factors like eligibility, covered family members, and wage replacement rates will need to be adjusted as well. Low code/no code platforms are invaluable for this reason; any employee can make a necessary change quickly without requiring the skills of a dedicated developer. Similarly, if one portion of the system needs maintenance or upgrading, that single component can be taken down and fixed while the rest of the system continues running without disruption.
These platforms also facilitate interoperability, another key feature for government programs. The ability to integrate with other state programs for data sharing allows states to reduce duplication of both collected and stored data. It also enables cross-checking and validation of data for accurate outcomes.
PFML is a rare opportunity for states to encourage work-life balance while also benefiting employers, and these programs can open doors to further avenues to encourage citizens’ wellbeing. The states that have already implemented PFML supply a wealth of evidence that the programs are both affordable and sustainable. Working with knowledgeable partners and taking advantage of emerging technologies will help other states seize the chance to support a healthier workforce and a more stable economy for workers and employers.
To learn more about maximizing the potential of your PFML program, click here.
