As we bid farewell to 2023 and step into the promising horizon of 2024, it's crucial to highlight the remarkable strides made in the landscape of Paid Parental Leave (PPL). This review encapsulates the newest and revamped policies, showcasing the expanding realm of paid family leave (PFL) programs across the nation. 70% of employers were looking to add or expand paid parental leave in 2023, so here’s a glimpse into the recent changes in PFL and a peek into the anticipated transformations in the coming year.
Oregon unveiled its state-funded PFL program in September 2023, providing a safety net for working parents with a generous allowance of up to 12 weeks of paid leave alongside job protection. This inclusive initiative encompasses support for family, medical, or safe leave. This includes birth, adoption, and foster care, as well as providing time and support for employees to care for themselves or loved ones.
To learn more, you can visit Oregon’s Paid Leave website.
Exciting news ahead; Colorado’s much-anticipated PFL program is set to launch on January 1, 2024. The program, Family and Medical Leave Insurance (FAMLI), was approved in 2020 and ensures all Colorado workers have access to up to twelve weeks of paid leave for the birth, adoption, or fostering of a new child. The program also covers medical care for self or family members, leave for domestic violence, or military leave.
Employers and employees have been contributing premiums since November 2023 to fund this program and eligible employees can start applying for benefits through the My FAMLI+ Portal today. The program has a one month retroactive period, helpful for employees to plan ahead.
You can visit Colorado’s FAMLI website for more information.
The momentum doesn’t stop with Colorado. Several existing programs across the nation are undergoing enhancements in 2024. Notable among these updates is California's removal of the wage cap for PFL and State Disability Insurance (SDI) deductions. Additionally, legislation in Maryland, Maine, Delaware, and Minnesota is on the radar, gearing up for new PFL programs in the next few years. For more information, our PFL Guide is a valuable asset for employees and employers alike.
It’s important to note that this review focuses solely on public programs, excluding the scope of private or voluntary initiatives. Public PFL programs are state-funded and mandated by law, whereas private programs are established by employers to support their workforce voluntarily. Examples of existing private PFL programs are in New Hampshire, Alabama, and Florida. In these states, companies work with their short term disability (STD) carriers to enhance their benefits, but they’re not mandated by state law.
This is just the beginning. Inspired by what we’ve seen over the past year, here are five of our predictions for the world of insurtech, famtech, and benefits in 2024:
More State Mandated PFL Programs: The demand for federal action will continue to increase, keeping policy demand in national discourse. According to a recent poll, over 96% of young voters of color support paid parental leave, including 85% of voters in battleground states. However, funding remains a hurdle and the U.S. is far from wide sweeping federal legislation so more states will need to step up to the plate.
AI Integration: As AI continues to impact the workplace, there’s a clear opportunity. We expect to see more and more AI integration to improve efficiency and accuracy for insurance claims, benefit management, and client relations. AI, like chatbots, can also help employees understand what’s available to them so they can make the right benefit decisions for themselves and their families.
More Employee Demands for PPL: As more states acknowledge the imperative nature of PFL, employee expectations for paid parental leave will continue to increase. Paid leave still remains at the top of the list for employees, and will continue to be at the center of many employee negotiations and employment conversations. Many companies are already using PPL as a way to attract and retain talent, out-competing larger organizations.
Higher Demand for EAP Utilization: EAP programs have historically been underutilized, but there’s a growing awareness of mental and emotional health and the need for these programs. 85% of employees currently don’t use their mental health benefits despite being available, so we expect a higher demand for utilization as companies are looking to maximize the resources available.
Continued Support for Working Parenthood + Expansion of Care Economy: Despite the forecast for a more stable 2024, 2023 has highlighted the demand for socially conscious and social impact infrastructure. Many companies lose parent employees by not having equitable policies or programs, like paid parental leave, or expanding the care economy.
To help companies navigate the path forward, Parento’s Paid Parental Leave insurance emerges as a pioneering solution, solving the headaches of affording and managing paid parental leave. Anchored by gender-neutral paid parental leave insurance, Parento’s scalable and affordable suite of products supports all workplaces and bridges gaps in coverage, especially for companies with a footprint across multiple states.
State programs have come a long way, but the paid parental leave landscape is still complicated and fragmented.
Even in states with PFL coverage, Parento’s insurance can bolster and fortify the scope of benefits, fostering a more competitive landscape for companies to tackle 2024 with confidence. To learn more about how Parento can help, chat with our sales team.
