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Decoding state leave benefits: A must-know for employers

A leave of absence related image – a new parent/family image will work

How to help employees understand their state leave options

The leave-of-absence (LOA) space has become increasingly complex, primarily due to the expansion of state-specific leave benefits. While the federal Family and Medical Leave Act (FMLA) set basic guidelines for job-protected unpaid leave, many states have introduced their own leave laws which differ significantly in terms of eligibility, duration, family relationships covered, reasons for leave, job protection rules, and potentially income replacement.

As of January 2025, 14 states/jurisdictions have or will soon have statewide paid family and medical leave programs in place, making the landscape even more complex. These variations have created a patchwork of regulations that employers must navigate, making it critical for businesses to help employees understand their leave options.

 

The challenge for employers

For employers, managing this variety of state-specific benefits creates significant challenges. Companies with a presence in multiple states must track and comply with different laws, increasing the administrative burden. Even for smaller businesses operating in one state, the complexity of different leave rules can be overwhelming, especially as state legislation and regulations continue to evolve.

 

The challenge for employees

For employees, taking a leave of absence can also feel overwhelming and confusing. Employees may feel unsure how their responsibilities will be managed while they’re out and worried they’re overburdening their teammates. Many workers are unaware of the full range of leave options available to them and unsure where to start. Navigating the complexities of leave policies, managing the required paperwork, and understanding the available benefits can be stressful, especially if the employee is already dealing with a personal or family health issue. All of these factors can contribute to feelings of uncertainty and stress during what should be a time of rest, recovery, or time focused on family needs.

 

How employers can help

By helping employees understand their rights and responsibilities, employers can reduce confusion and ensure the leave process runs smoothly.  Many insurance carriers provide educational resources and support to employers who are looking to provide more education to their employees. Education can take many forms:

  1. Manager training and resources: Information sessions or online resources can help explain state leave laws in simple terms.
  2. Online tools and videos: Leave planning tools and online benefit portals with educational resources can help employees prepare for their leave and better understand their benefits.
  3. Effective Communication: Clear channels for employees to ask questions can help them get the guidance they need when making leave requests. These channels could include an employee portal with click-to-chat capabilities, text messaging, and email communications.

By prioritizing employee education and offering clear, accessible resources about state leave benefits, employers can reduce confusion, ensure smoother processes, and enhance employee satisfaction.

SMRU 7648322 Exp. 02/20/2028