Paid Family and Medical Leave Overview - MetLife

Disability

Group Benefits

Paid Family and Medical Leave Overview

February 2021

Navigating and complying with the various Paid Family and Medical Leave laws can be complicated -- but it doesn't have to be. This guide helps outline what you need to know for existing programs as well as for future programs to help be compliant. The information will help you understand how each of the states are implementing paid leave programs and what the future may look like.

Paid Family and Medical Leave Overview

Table of Contents

PFML timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2020: A year in review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 PFML programs -- far from the shallow end now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 States with sick leave laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 State plans with key dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 What does compliance look like? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 PFML coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 We are here to help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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Paid Family and Medical Leave Overview

PFML timeline

Statutory disability laws first appeared back in the 1940s when men were coming back from war and were considered the primary income source while women were expected to stay at home to raise a family. Todays families have a very different dynamic where it is common to have both parents working and adult age children still living in the same home, contributing to the household expenses.

Statutory Disability Laws

1940s RI, CA, NJ

1950s NY

1960s HI

Federal

1990s FMLA

Statutory Paid Family

Statutory Paid Family & Medical Leaves

2000s CA, NJ

2014 2016 2017 2018 2019 2020

RI

DC WA MA CT, OR CO

In November 2020, Colorado's general election voted in a state PFML program that included a state tax associated with the benefits. This reflects the public consensus that paid leave is necessary and workers are willing to make financial contributions to fund the benefit plans.

Given this change in dynamic, in recent years paid leaves have risen to the top of conversation within larger corporations and within our own governments to help mitigate a family's financial risk if any income earner cannot work due to their own or a family member's medical needs. The United States, Papua New Guinea, Suriname (the smallest country in South America) and a few island countries in the Pacific Ocean are the only countries in the United Nations that do not require employers to provide paid family leave for new parents.

2020: A year in review

What you need to know:

WA and DC started paying benefits for their PFML programs

MA started accepting applications for benefits in December for their official start date on January 1, 2021

CT launched their PFML website that included an Employer Registration section supporting their own governmental PFML program and published private plan guidelines supporting employers who already have similar benefits

A Federal program offering paid parental leaves to many government workers began in October

NY and NJ expanded their existing programs

CO PFML law was passed by general election

In total, 21 states discussed proposed PFML bills

COVID-19 temporary paid leave legislation led to many states adopting new or making permanent changes to their paid sick leave laws, which are different than these Paid Family and Medical Leaves.

2020 state legislation was filled with emergency orders to protect workers due to the unprecedented COVID-19 pandemic. The terms `quarantine', `isolation', `telemedicine' and `alternative' work locations are now a normal part of our business as usual. Employers are rethinking their business model to define a new normal, offering more permanent work from home opportunities.

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Paid Family and Medical Leave Overview

PFML -- far from the shallow end now

The Paid Family and Medical Leave Landscape As of March 2021

State Status 7 Approved and active 3 Approved ? future start date 27 Proposed bill 8 Executive Orders 2 DI only 5 No plan at this time

MetLife Offerings Self-Insured and Insured

WA OR

ID NV CA

UT

AZ

AK

Federal Workers

MT WY CO

NM

HI

ME

ND SD

NE KS OK

MN WI

IA IL

MO

AR MS

MI

OH IN

KY TN

VT NH

NY

MA

CT

RI

PA NJ

MD

DE

DC WV

VA

NC

SC

AL

GA

LA TX

FL

PR

For Producer or Broker/Dealer Use Only Not for Use with the General Public

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Paid Family and Medical Leave Status Approved and active Approved - future start date

Proposed bill

Executive Orders DI only No plan at this time

Number of States, Etc. 7 3

27

8 2 5

List of States, Etc. CA, DC, MA, NJ, NY, RI, WA CO, CT, OR AR, AZ, DE, FL, GA, IA, IL, IN, KY, ME, MI, MN, MO, MS, MT, ND, NE, NH, OH, OK, PA, SC, TX, UT, VT, WI, WV, WY ID, KS, MD, NC, NM, TN, VA HI, PR AK, AL, LA, NV, SD

Paid Family and Medical Leave Overview

States with sick leave laws

Sick leaves are for the immediate need. They normally replace 100% of wages and are available without certification such as from a doctor or providing proof of absence. On the other hand, Paid Family and Medical Leaves are designed for the longer absence, up to 26 weeks and do require certification that the absence has merit. PFML normally provide a percentage of an employee's wages to encourage them to return to work.

State mandated (also referred to as statutory) Paid Family, Own Medical, and Disability leave laws are typically designed to provide basic benefits to `all' workers in their jurisdiction; therefore, we see differences in each state's plan designs, funding, and eligibility.

States are providing guidance on minimum standards for PFML programs that help smaller employers compete for and retain talent by providing benefits many larger Employers already provide their Employees.

Status

18 Approved states

27 Approved in municipalities

33 None

Municipalities

CA Berkeley Emeryville Long Beach Los Angeles (2) Oakland San Diego San Francisco Santa Monica

IL Chicago Cook County

LA New Orleans MD Montgomery County MN Duluth

Minneapolis St. Paul NM Bernalillo County NY New York City Westchester County PA Pittsburgh Philadelphia TX Austin Dallas San Antonio WA Seattle SeaTac Tacoma

WA OR

ID NV CA

UT

AZ

AK

MT WY CO

NM

HI

ME

ND SD

NE KS OK

MN WI

IA IL

MO

AR MS

MI

OH IN

KY TN

VT NH

NY

MA

CT

RI

PA WV

VA

NJ

DE MD DC

NC

SC

AL

GA

LA TX

FL

PR

5

Sick Leave Law Status Approved in States

Approved in Municipalities

None

Number of Locations 18

27

Locations States, etc.: AZ, CA, CO, CT, DC, GA, IL, MA, MD, ME, MI, NJ, NV, NY, OR, RI, VT, WA Municipalities in State CA: Berkeley, Emeryville, Long Beach, Los Angeles (2), Oakland, San Diego, San Francisco, Santa Monica. Municipalities in State IL: Chicago, Cook County. Municipalities in State LA: New Orleans. Municipalities in State MD: Montgomery County. Municipalities in State MN: Duluth, Minneapolis, St. Paul. Municipalities in State NM: Bernalillo County. Municipalities in State NY: New York City, Westchester County. Municipalities in State PA: Pittsburgh, Philadelphia. Municipalities in State TX: Austin, Dallas, San Antonio. Municipalities in State WA: Seattle, SeaTac, Tacoma.

33

States: AK, AL, AR, FL, HI, IA, ID, IN, KS, KY, LA, MN, MO, MS, MT, NC, ND, NE, NH, NM, OH, OK, PA, PR, SC, SD, TN, TX, UT, VA, WI, WV, WY

Paid Family and Medical Leave Overview

Activity in 2021 --

? VA DI law expansion (VA SB 567) to include 12 weeks of paid maternity leave for birthing mothers -- effective 7/1/2021.

? CT and OR regulations build out for their own state programs. Both offer private plan opt outs if an employer does not want to use the state administrative program. CT allows insured and fully insured; OR offers self-insured only.

? PA, ME, NH, and VT have had strong support for state PFML programs. Northeast states have always competed for a skilled workforce, therefore paid leave programs are top of mind for the state's new legislators.

? HI PFL may be slower than expected due to the state's economy heavy dependence on travel/vacation which was halted during COVID-19.

30%

of US workers to be covered under Statutory DI, PFL or PFML Laws by 2024*

Region California Colorado Connecticut District of Columbia Hawaii Massachusetts New Jersey New York Oregon Rhode Island Washington SUM PFML/DI States TOTAL US Workers

*Source:

2020 November Workforce (thousands)* 13,764 2,252 1,375 506 439 2,935 3,320 7,385 1,552 403 2,761 36,698 121,197

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