Insights
December 19, 2025

What's Changing in Paid Family Leave in 2026: Your Complete Guide

A primer and complete breakdown on everything you need to know about PFL in 2026.
Written by
Dirk Doebler
Category
Insights

The Paid Family Leave landscape is evolving faster than ever, and 2026 brings some of the most significant changes we've seen yet. From two major state program launches to groundbreaking NICU coverage expansion and meaningful benefit increases across the board, employers need to understand exactly what's coming. 

Here’s a primer and breakdown on everything you need to know about PFL in 2026.

The Big News: Three New States Launch PFL in 2026

Minnesota and Delaware officially launch their state-run paid family and medical leave programs on January 1, 2026, and Maine follows with benefit payments starting May 1, 2026. This now brings the number of mandatory programs to 13, including D.C., and there is talk of additional program expansion in 2027. 

Minnesota: NEW!

Minnesota's program launches January 1st and is one of the most generous launches we've seen. 

  • Length of leave:
    • 12 weeks of medical leave for an employee's own serious health condition
    • 12 weeks of family leave for bonding with a new child, caring for a family member, military family support, or safety leave
    • Up to 20 weeks total when combining both types in a single benefit year
  • Wage replacement: 55-90% of regular wages on a sliding scale, with lower earners receiving higher replacement rates
  • Maximum weekly benefit: $1,423

They still have a waiting period (7 days after the qualifying event) and they do offer job protection, kicking in after 90 days of employment. 

Delaware: NEW!

Delaware's program, also launching January 1, 2026, takes a different approach from most states:

  • Length of leave:
    • 12 weeks of paid leave per year for family leave, medical leave, or bonding
  • Wage replacement: 80% of weekly wages, one of the highest rates in the country
  • Maximum weekly benefit: $900

What sets Delaware apart: employers actually administer the program for their own employees (training and determining eligible claims and remitting payment directly to the employer) while the state reimburses employers and handles appeals. This is different from most state programs where the state handles everything directly.

As of July 2025, employers can no longer require employees to exhaust their PTO before using PFL, but employees can still elect to supplement (“top off”) their PFL leave with PTO. Fortunately, this is now at the employee’s discretion. 

Maine: Rolling Out in May

Maine's program has a slightly different timeline, with contributions that started January 1, 2025, and benefits beginning May 1, 2026. More information is expected in Q1 2026. 

  • Length of leave:
    • 12 weeks of paid leave for family leave, medical leave, military exigency, service member leave, or safety after abuse/violence
  • Contribution rates: 1% of wages for employers with 15+ employees (split up to 50/50 with employees); 0.5% for employers with fewer than 15 employees

Colorado Becomes First State with NICU Leave

Colorado is breaking new ground as the first state in the nation to offer additional paid leave specifically for NICU parents. Starting January 1, 2026:

  • 12 additional weeks of paid leave while a newborn is receiving inpatient care in a NICU
  • Separate from bonding leave, meaning parents can take the full 12 weeks of NICU leave during hospitalization, then take their full 12 weeks of bonding leave once the baby comes home
    • The NICU leave must be taken intermittently (not all at once) and it doens’t reduce other entitlements in FAMLI (e.g. for future non-child bonding leave events such as medical coverage)
  • Up to 24 weeks total for parents with a NICU baby (or up to 28 weeks if the birthing parent also experiences pregnancy/childbirth complications requiring medical leave)

This is massive and a major victory for parents, especially as NICU hospitalizations continue to rise. Today, one-third of children are born via c-section delivery and over 15% of newborns will experience complications that may require a NICU stay. Any parent who's had a child in the NICU knows the impossible choice between being at your baby's bedside and being worried this will eat into your already limited parental leave. 

Other Notable State Program Changes

California: Record-High Benefits Continue

California's 2025 increases continue into 2026 with further adjustments:

  • Wage replacement: 70-90% (increased from 60-70% in 2024)
  • Maximum weekly benefit for 2026: $1,765 (up from $1,681 in 2025)
  • State Average Weekly Wage: $1,789 (up from $1,704 in 2025)
  • Employee contribution rate: 1.3% (up from 1.2% in 2025)
  • No wage cap on contributions since 2024

The tiered benefit structure means employees earning up to 70% of the state's average weekly wage (about $63,000 annually) receive 90% wage replacement, while higher earners receive 70% up to the maximum. This progressive structure significantly benefits lower and middle-income workers who need it most.

New York: Double-Digit Contribution Increase

New York's updates for 2026 show the financial pressure these programs face:

  • Maximum weekly benefit: $1,228.53 (up from $1,177.32 in 2025)
  • State Average Weekly Wage: $1,833.63 (up from $1,757.19)
  • Employee contribution rate: 0.432% (an 11.31% increase from 0.388% in 2025)
  • Maximum annual employee contribution: $411.91 (up from $354.53)
  • Benefit duration: 12 weeks at 67% of average weekly wage

The contribution rate increase is the largest we've seen in recent years and reflects program utilization that exceeded initial projections. Employers need to update payroll systems and communicate these changes to employees before January 1.

Washington: Expanded Job Protection and Shorter Claim Minimums

Washington's 2026 changes focus on accessibility and worker protection:

  • Job protection expanded dramatically: The employer size threshold drops from 50 employees to just 25 employees in 2026, then to 15 employees in 2027, and eventually to 8 employees by 2028
  • Service requirements reduced: Down to just 180 days with no hours-worked requirement
  • Minimum claim duration cut in half: From 8 consecutive hours to just 4 consecutive hours
  • Maximum weekly benefit for 2026: $1,647
  • Prevents leave stacking: FMLA and PFML must run concurrently when employers provide proper written notice
  • Benefits continuation: Employers must continue health benefits during any PFML leave, not just when it runs concurrently with FMLA

These changes mean significantly more Washington employees will have job-protected leave in 2026, which has major implications for workforce planning and temporary staffing.

Oregon: New Employer-Friendly Changes

Oregon made several important adjustments effective January 1, 2026:

  • Blood donation leave added: Employees can now use paid sick time to donate blood through approved programs
  • Disability insurance coordination: Private disability insurers can no longer require employees to apply for or exhaust Oregon Paid Leave before accessing disability benefits

The disability insurance change is significant because it means employees may have access to income support for weeks beyond their paid leave period, potentially extending their leave.

What Prepared Employers Are Doing Now

The most forward-thinking employers aren't trying to manage this complexity in-house. They're recognizing that paid family leave compliance is becoming a specialized function requiring:

  • Real-time tracking of multi-state requirements
  • Automated contribution calculations
  • Integrated claims administration
  • Employee communications that account for state-specific rules
  • Coordination with existing benefits like STD/LTD
  • Risk management and compliance monitoring

This is exactly why Parento exists. We provide a one-stop solution that simplified compliance, reduces administrative burden, saves significant time and money, and improves the employee experience so employers can focus on productivity and scaling. 

Connect with us to learn about your options. <insert link to schedule> 

Don't Wait Until December

These changes take effect January 1, 2026 (May 1 for Maine). That means:

  • Payroll systems need updating now
  • Employee communications should go out in December at the latest. We have a handy toolkit to help you launch and announce Open Enrollment 
  • HR teams need training on new requirements before year-end
  • Leave policies need to updated, especially if you have remote employees working in one of these states 

Ready to simplify your 2026 paid family leave compliance? Let's talk about how Parento can help you navigate these changes while providing better support to your employees during life's most important moments.

This post provides general information about state paid family leave programs as of December 2025. Specific requirements vary by state, employer size, and individual circumstances. Parento is not offering legal or tax advice.

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