State and Local Paid Family Leave Laws Create Challenges for Employers, Lawyers Say
Many states and municipalities' efforts to update workplace policies and extend rights beyond the federal Family and Medical Leave Act are presenting difficulties for employers, particularly large ones that operate in numerous states.
April 03, 2018 at 03:22 PM
5 minute read
Many states and municipalities' efforts to update workplace regulations governing paid leave beyond the federal Family and Medical Leave Act are presenting difficulties for employers, particularly large ones that operate in numerous states, labor and employment experts said.
At least 7 states and D.C. have introduced legislation recently that offers or expands paid family or medical leave: California, New Jersey, New York and Rhode Island currently require paid family leave, which is funded through employee payroll deductions and existing temporary disability insurance programs.
New York's Paid Family Leave Act went into effect in January and guarantees eight weeks of paid leave in 2018, increasing to 12 weeks by 2021, when caring for an infant or a family member. Washington, D.C., enacted a paid family leave law in February 2017 that takes effect in July 2020. Washington state passed a measure to create a paid family leave program in July 2017, with benefits starting in 2020, according to the National Conference of State Legislatures. Last month, the New Hampshire House approved a state-run program that would offer six weeks of paid family and medical leave insurance and 60-percent wage replacement. The state Senate Finance Committee has a scheduled hearing on the measure later this month. In Maryland, the Senate passed a bill that would give tax credits to businesses that offer employees paid sick leave. The bill needs the House of Delegates' approval before moving to the governor's desk.
These measures are in addition to those that are already in place or scheduled to go into effect in several other states and municipalities, said Sherry Leiwant, co-founder and co-president of A Better Balance, a New York City-based nonprofit legal organization that works to advance working families' rights, and drafted the language in many of these bills. Austin, Texas, for example, became the first city in that state to pass a paid sick leave policy in February, when the city council approved a bill that will, beginning in October, allow workers to accrue one paid hour off for every 30 hours worked.
“With these issues, it's an intersection between labor rights and women's rights and a recognition that there should be minimum standards on these issues, as well as how much money you get in your paycheck,” Leiwant says of the current trend.
There is no federal law governing paid sick leave in the United States, although the overwhelming majority of states have enacted some sort of policy, Leiwant said.
The federal Family and Medical Leave Act, enacted in 1993, requires covered employers to provide workers with job-protected and unpaid leave for qualified medical and family reasons but still leaves many gaps, said Amanda Farahany of Atlanta-based plaintiffs employment firm Barrett & Farahany.
In addition to mandating that the time off be unpaid, the FMLA has several restrictions, including, as one example, the requirement that the employer have 50 or more employees.
“The states are filling in what FMLA does not have,” Farahany said.
But as the Austin case demonstrates, it's not just the states that are looking to fill in those gaps, said Albert Randall, a labor lawyer at Franklin & Prokopik in Maryland. Many municipalities, in some cases the more politically liberal locales within a more conservative state or, in other instances, local governments that feel the state is not acting quickly enough, also have gotten into the game, creating difficulties for many employers, Randall said.
“What large employers, or at least those that operate in multiple jurisdictions, are dealing with is the fact that there is no one definition,” he said. “Now you're getting the states, the counties and even larger incorporated cities that are coming up with their own definitions.”
Randall cites as an example family leave measures that could be so broadly defined that they include paid time off for domestic violence victims or for parents to attend school-related activities and events for their children.
“Given the promulgation of these types of regulations across the country, many employers have been forced to move to paid time off,” he said. “So they either try to word their PTO broadly enough that it encompasses these various types of definitions, or they are tasked with [developing] separate leave policies and definitions for their PTO policies depending on the jurisdictions.”
But Randall offered a couple of tips for employers trying to navigate this trend in paid leave: First, maintain an ability, either through counsel or the HR department, to monitor developments in this area at all levels, particularly at the county and municipal level, which are more difficult to track, Randall said. Also, be aware of the ambiguity in many of these states' laws, particularly around the issue of when an individual becomes entitled to the benefit, and identify those areas where the ambiguities lie, he added. “Much of this legislation is passing without the specificity that an employer would like,” Randall said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNLRB Blisters Skilled Care Home Chain That Terminated Nursing Assistant Who Complained About Wages
6 minute readPreparing for 2025: Anticipated Policy Changes Affecting U.S. Businesses Under the Trump Administration
Employers Race to File NLRB Petitions to Gain Upper Hand in Union Organizing
5 minute readTrending Stories
- 1Avantia Publicly Announces Agentic AI Platform Ava
- 2Shifting Sands: May a Court Properly Order the Sale of the Marital Residence During a Divorce’s Pendency?
- 3Joint Custody Awards in New York – The Current Rule
- 4Paul Hastings, Recruiting From Davis Polk, Continues Finance Practice Build
- 5Chancery: Common Stock Worthless in 'Jacobson v. Akademos' and Transaction Was Entirely Fair
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250