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Paid Family and Medical Leave (PFML) continues to become a required benefit in a growing number of states – next year alone, 4 new states are joining the list: Delaware, Maryland, Maine, and Minnessota. While, admittedly, this is exciting for us as a PFML carrier, there are grander things at play – it’s a benefit that comes with a series of added benefits for employees, who need to take leave, and employers alike. Let’s take a closer look at our 5 things to love about PFML:
- Helps prioritize family and address well-being during moments that matter
PFML helps employees focus better on life’s most important moments by reducing the stress factors related to paid time off balances, potential income loss, and work obligations. Depending on the state, PFML programs also provide job security and/or continuation of health benefits. By providing this added layer of support, PFML can help strengthen the foundation of our personal and professional lives – whether it is to bond with a new child, care for a loved one in need, attend to personal health situations, or other covered events.
- Provides income replacement
As briefly mentioned above, PFML adds financial support during critical times by providing partial income replacement, which is a key difference from unpaid protections offered by the Family Medical Leave Act (FMLA).
- Supports employees who usually have less access to benefits or can’t afford to take off
Without PFML, low-wage workers may encounter more financial difficulty than high earners when needing to take time off from work for covered events like the ones listed above.
- Helps advance gender equality in bonding and caregiving
PFML encourages employees of all genders to take leave to care for a family member and/or bond with a new child. It helps new parents overall, not only moms, to build those critical early bonds with the newest addition to the family, fostering a balance for both parents between work and life events. Learn more about why it’s important for dads to bond, too.
- Enhances attraction and retention of talent
Lastly, let’s take a look at the employer perspective: while PFML as a state-required benefit may not necessarily be a key differentiator for all employers to attract talent, studies have shown that it may help reduce turnover and associated costs as it cultivates loyalty, trust, and retention by creating an environment that values an employee’s well-being. According to H. Luke Shaefer, the director of the University of Michigan’s Poverty Solution, "people who go on leave are more likely to stay in a job, resulting in a short-term loss for employers for a long-term gain, and that paid leave programs can have a positive impact on labor force participation for those most likely to need to take leave."1
PFML is more than a benefit: It is also an investment in people - and one that is worth opening our hearts for. So, this Valentine’s Day, let’s spread some love for PFML! Share this article using #LovePFML.
1Ross, L. (2024). “Experts, policymakers highlight new studies showing statewide Paid Family and Medical Leave would benefit workers, economy.” Available at: https://poverty.umich.edu/2024/11/14/experts-policymakers-highlight-new-studies-showing-statewide-paid-family-and-medical-leave-would-benefit-workers-economy/ [Accessed 27 December 2024].
The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company a NY-domiciled carrier (principal office in Garden City, NY) and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, with licensing depending on the state.
This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of Maine’s applicable laws and regulations as of the publication date and may change as regulations evolve or Maine Department of Labor issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.