How Do the FMLA and State Paid Leaves Interact with Each Other and What Employers Need to Know

On January 14, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued an opinion letter stating that employers cannot require employees to use their employer-provided paid time off, including vacation time, while the employee is taking leave under the FMLA and receiving pay under a state or local paid family and medical leave (PFML) program. The WHD explained that the DOL’s FMLA regulations on substitution of paid leave apply to leave taken under a PFML program in the same way they apply when an employee is on FMLA leave and receiving benefits under a paid disability plan. Similarly, we recently reported on similar requirements under California law here.

As of March 16, 2025, 13 states (California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, and Washington) and the District of Columbia have enacted paid mandatory paid family and medical leave programs, with some states having voluntary programs (New Hampshire and Vermont) as well.

Employers need to (1) be aware of the differences between the federal and state programs, (2) know how to administer various types of leaves when an employee needs to be out; and (3) make sure they are not violating any provisions of the multiple leave laws.

Key Differences Between FMLA and State PFML Programs

1. Paid vs. Unpaid Leave
   • The FMLA provides eligible employees with unpaid leave with job protection. “The statute also allows the employee to elect, or an employer to require the employee, to “substitute” accrued employer-provided paid leave (e.g., paid vacation, paid sick leave, etc.) for any part of the unpaid FMLA entitlement period. The term “substitute” means that either the employer or employee, on their own, can decide to have employer-provided paid leave run concurrently with the unpaid FMLA leave.”
   • State PFML programs typically provide wage replacement benefits during leave. Some provide actual paid leave (as opposed to wage replacement only) and job protection during leave but this varies from jurisdiction to jurisdiction.
2. Eligibility Requirements
   • Under FMLA, employees must have worked for at least 12 months and accumulated at least 1,250 hours with an employer that has at least 50 employees within a 75-mile radius.
   • State PFML programs often have different eligibility thresholds, sometimes covering part-time workers and those employed by smaller businesses.
3. Covered Reasons for Leave
   • FMLA covers leave for the birth or adoption of a child, a serious health condition of the employee or their immediate family member, or military-related exigencies.
   • State PFML programs often cover the same reasons as the FMLA but many also expand upon these reasons, sometimes covering additional caregiving responsibilities, victims of domestic violence, and broader definitions of family.

How FMLA and State PFML Interact

1. Concurrent Leave Usage
   • If an employee qualifies for both FMLA and state PFML, the two types of leave typically run concurrently, when applicable, meaning an employee cannot “stack” the leaves for an extended absence.
   • Employers can require employees to use FMLA while receiving paid benefits under state programs to ensure job protection. However, as set forth above, if an employee is receiving paid PFML benefits, the employer cannot also require an employee to run other employer-provided paid leave concurrently under the new WHD guidance.
2. Job Protection Considerations
   • FMLA guarantees job restoration upon return, while some state PFML programs do not offer explicit job protection.
3. Employer Obligations
   • Employers must coordinate FMLA leave with state PFML benefits, ensuring proper documentation and compliance with both laws.
   • Some state programs require employer and/or employee payroll contributions, whereas FMLA does not impose any direct cost on employers.

Conclusion

As more states implement paid family and medical leave programs, the interplay between federal FMLA and state PFML laws continues to evolve. Employers and employees must stay informed about their respective rights and obligations to ensure seamless leave administration and compliance. Understanding how these programs interact can help facilitate a smooth leave experience while maintaining workforce stability and legal compliance.

While both programs provide leave for family and medical needs, FMLA focuses on job protection with unpaid leave, whereas state PFML programs provide wage replacement but may not always guarantee job security. Employers and employees must carefully coordinate these benefits to maximize leave rights while ensuring compliance with applicable laws.

Contact Rimon Law for further assistance in navigating the coordination of leaves under FMLA and State or Local PFML programs.

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This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with Rimon, P.C. or its affiliates.