Where You Owe Paid Family Leave

When you owe paid family leave (and where)

Federal law does not require paid family leave for ordinary private employers. Federal FMLA provides unpaid, job-protected leave for covered employers and employees. But 13 places — California, Colorado, Connecticut, Delaware, D.C., Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, and Washington — are paying state PFML benefits in 2026.

The practical rule is location-based: check the state where the employee actually works. If an employee works in a PFML state, you may need to set up state contributions even if your business has no office there. Maryland and Virginia are next; their mandatory programs start in 2027-2028.

How to audit your paid-leave exposure this week

• List every employee by their actual work state (not residence, not your HQ).
• If any work in a PFML state, confirm whether registration or payroll setup is required.
• Check who pays the contribution: employer, employee, or split shares.
• If FMLA also applies, send the FMLA designation notice within 5 business days.
• For past gaps, review the contribution history before the next claim or audit.

How small mistakes become big state assessments

• A remote employee works in Washington, but payroll is still set up only for the employer's home state.
• A private plan lapses, but deductions continue from employee paychecks.
• An employee returns from PFML and is penalized for taking the leave.
• PFML is treated like an optional company benefit instead of a state contribution program.

Track every employee by work state, not headquarters

Almost every paid-family-leave mistake starts with tracking the wrong state. List employees by where they actually work, then match that location to the state PFML rules. That one recordkeeping habit makes the rest of the audit easier: contributions, FMLA notices, leave records, and payroll history all point back to the same work-state record.