A growing number of states run their own paid family and medical leave (PFML) programs. These are insurance programs funded by premiums on wages, paid by employers, employees or both, that pay workers part of their income during leave for their own illness, a new child, family care or related reasons. For payroll, they mean new registrations, new deductions and new quarterly reports in each state with a program.
States with programs
As of October 2026, state-run paid family and medical leave or related temporary disability programs operate in or are scheduled for the following places. Confirm current details with each agency.
| Jurisdiction | Program name or agency |
|---|---|
| California | State Disability Insurance and Paid Family Leave (EDD) |
| Colorado | Paid Family and Medical Leave Insurance (FAMLI) |
| Connecticut | CT Paid Leave |
| Delaware | Delaware Paid Leave |
| District of Columbia | Paid Family Leave (DOES) |
| Maine | Paid Family and Medical Leave |
| Maryland | Paid family and medical leave, scheduled to begin in 2028 |
| Massachusetts | Paid Family and Medical Leave |
| Minnesota | Paid Leave |
| New Jersey | Temporary Disability and Family Leave Insurance |
| New York | Paid Family Leave and disability benefits |
| Oregon | Paid Leave Oregon |
| Rhode Island | Temporary Disability and Caregiver Insurance |
| Washington | Paid Family and Medical Leave |
State programs change quickly through legislation and rule changes, so the table is a starting point for research and not a complete list of every temporary disability program in the country.
Recent developments
- Delaware: Contributions began January 1, 2025, with payroll deductions starting for employers whose employees contribute to the cost of the plan. The state says the program went into full effect January 1, 2026, and employees began submitting claims then.
- Maine: Benefits start for leave taken on or after May 1, 2026. The program offers up to 12 weeks of paid time in a benefit year for medical, parental, family care, military family or safe leave.
- Minnesota: The premium rate is 0.88% of employee wages for 2026 and 2027. Employers can collect up to 0.44% from employees or choose to cover more. Employers report wage detail and pay premiums quarterly using the state's unemployment insurance system.
- Maryland: The state says eligible employees will be able to take up to 12 weeks of paid, job-protected leave starting January 1, 2028, with payments up to $1,000 per week.
What employers typically have to do
- Register with the state agency. Some states, such as Minnesota, use the unemployment insurance employer account, and others use a separate portal.
- Calculate premiums on covered wages using the state's current rate and wage limits. These change often.
- Withhold the employee share where it is allowed, and pay the employer share.
- File quarterly wage reports and pay the premiums, usually by the same dates as unemployment insurance reports.
- Post notices and give employees written information about the program and about job protection.
- Handle leave requests according to the state's rules, and keep group health coverage going where required.
Some states allow employers to use an approved private plan in place of the state plan. That choice has deadlines and requirements, so ask before you sign up with an insurer.
Illinois
Illinois is not on the list above. Employers in Illinois are covered by the Paid Leave for All Workers Act (PLAWA), under which workers can earn up to 40 hours of paid leave each year at the rate of one hour for every 40 hours worked. Workers can use the leave for any reason, and employers may not require a reason. Some workers are not covered and existing employer policies may satisfy the law in some situations. Chicago and Cook County have their own ordinances, so employers there need to compare the local rules to the state law, and the state's page includes a jurisdiction chart. See our Illinois page for more state context.
Illinois employers with employees who work in another state with a PFML program still need to follow that state's program for those employees. See multi-state payroll.
Common mistakes
- Missing a registration when a remote employee moves to a PFML state.
- Applying the previous year's premium rate or wage cap.
- Withholding the employee share where state law forbids it, or failing to withhold where it is required.
- Assuming the federal FMLA threshold decides whether the state program applies. State programs often cover much smaller employers.
- Leaving out contractors that the state treats as employees.
How we can help
We register employers with state PFML programs, set up payroll deduction codes and quarterly reports, and review multi-state staff for new obligations. See our payroll services and our multi-state and local tax services. This is general information, not advice for your situation.
Frequently asked questions
Do all states have paid family leave?
No. A limited number of states and the District of Columbia run programs. Many other states have paid sick leave or other leave laws instead.
Do I collect paid family leave premiums from employees?
It depends on the state. Some states let employers collect part of the premium from employee wages, while some require the employer to pay more. Minnesota, for example, lets employers collect up to half of its 0.88% premium rate for 2026 and 2027.
Does Illinois have paid family and medical leave insurance?
Not a state-run insurance program like the ones listed above. Illinois has the Paid Leave for All Workers Act, which covers earned paid leave for any reason, and other Illinois leave laws.
What about remote employees?
Programs generally follow where the employee works. Check the program in the employee's state before the first payroll there.
Official sources
- Delaware Department of Labor: Delaware Paid Leave
- Maine Department of Labor: Paid Family and Medical Leave
- Maryland Department of Labor: Paid family and medical leave
- Minnesota Paid Leave: How Paid Leave works
- Illinois Department of Labor: Paid Leave for All Workers Act
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.