2025 Paid Family and Medical Leave Updates: What Employers Need to Know

As 2025 approaches, several states have announced updates to their Paid Family and Medical Leave programs - as they all go by different names, we’ll refer to these programs collectively as “Paid Leave”. Staying on top of these changes is essential for employers to stay compliant, adjust payroll deductions, and keep employees informed.

We’ve outlined the key updates below and shared some tips to help your organization get ready. It’s a lot to cover, so buckle up!

What Can Change in Paid Family Leave Programs?

Paid Leave is often tied to wage growth and economic conditions, which means adjustments are made annually to reflect these changes. Below are the main elements that may change year-to-year:

1. Benefit Amount
   States may increase the maximum weekly benefit to reflect rising wages or cost-of-living adjustments.

2. Benefit Length
   The number of weeks an employee can take for Paid Leave may be extended. 

3. Other Benefit Terms
   Other terms may change as well, such as how Paid Leave is coordinated with accrued PTO and sick leave.

4. Contribution Rate
   The percentage of an employee’s wages contributed to the Paid Leave fund may be adjusted, either increasing or decreasing based on program funding requirements.

5. Maximum Employee Contribution
   Many states set a cap on the maximum annual amount employees can contribute to the program, which may change over time.

6. Taxable Wage Cap
   The wage base subject to Paid Leave contributions may increase, especially in states that tie the cap to the Social Security taxable wage base or state-specific measures.
   
   

Key Updates in 2025

Below, we’ve outlined the anticipated updates for Paid Leave programs across states. This chart has been updated as of December 1, 2024.

California

Colorado

Connecticut

Delaware

The new Delaware Paid Family Leave program begins on January 1, 2026.

Participating in Delaware Paid Leave is mandatory for most businesses with 10 or more employees working in Delaware.

Starting January 1, 2025:

• All employers with 10 or more employees must register with LaborFirst.

• Employers with 10 or more employees that do not provide the mandated benefits either through the Delaware Paid Leave plan or an approved private plan will face penalties.

• The Department of Labor will assess contributions to the Delaware Paid Leave plan.

• Employers who share the cost of the plan with their employees will begin deducting employee contributions from their employees’ paychecks.

• Employers’ quarterly contributions are collected retroactively, 30 days after each quarter ends, on the same schedule as Delaware Department of Labor Division of Unemployment Insurance.

More information can be found here.

D.C.

Employers have until February 1, 2025 to post the updated notice and provide a copy to all covered employees. 

Note: New contribution rate (0.75%) went into effect 7/1/2024 and new max benefit ($1,153) went into effect 9/29/2024.

Hawaii (TBU)

Expected to announce in December.

Maine (NEW-2026)

The new Maine Paid Family and Medical Leave begins on May 1, 2026.

Participating in Maine Paid Family and Medical Leave is mandatory for most businesses with at least 1 employee working in Maine.

Starting January 1, 2025 you must start withholding contributions. More information can be found here.

Maryland (NEW-2026)

The new Maryland Family and Medical Leave Insurance program begins on July 1, 2026.

Participating in Maryland Family and Medical Leave Insurance is mandatory for most businesses with at least 1 employee working in Maryland.

Starting July 1, 2025 you must start withholding contributions. More information can be found here.

Massachusetts

Minnesota (NEW-2026)

The new Minnesota Paid Leave program begins on January 1, 2026.

Participating in Minnesota Paid Leave is mandatory for most businesses with at least 1 employee working in Minnesota.

No contributions will need to be withheld until January 1, 2026. More information can be found here.

New Hampshire

This is a voluntary paid family and medical leave program that you must opt into.

New Jersey

New York

Oregon

Note: New max benefit ($1,568.60) went into effect 7/1/2024.

Rhode Island

Note: New max benefit ($1,070) for both TDI and TCI went into effect 7/1/2024.

Washington

How to Prepare for 2025 Changes

1. Monitor State-Specific Announcements
   Stay informed about updates in the states where your company operates, as requirements can vary widely—including annual notice obligations.

2. Update Payroll Systems
   Update payroll configurations to reflect new contribution rates, maximum employee contributions, and taxable wage caps. These adjustments must be in place before the first paycheck of 2025, as retroactive deductions are generally not allowed.

3. Communicate with Employees
   Notify employees of any changes to their payroll deductions, especially if contribution rates or caps are increasing. Proactive, clear communication builds trust and avoids confusion.

4. Review Leave Policies
   Update your internal leave policies to align with new benefit amounts, lengths, and eligibility requirements, as well as any language you’ve included on the state programs.

5. Consider Investing in a Leave Management Tool
   Paid Leave programs are constantly evolving, and the risk of non-compliance is real. A leave management tool can serve as your single source of truth, saving your team countless hours and reducing stress while ensuring you stay compliant.