Federal Paid Family Leave Proposal Could Ease State Patchwork

The Bipartisan House Working Group released drafts of two bills that would incentivize uniform state paid family leave laws. 

Why it matters: Although the bills would not override state laws or establish a mandatory federal paid leave scheme, they aim to standardize various state paid family leave programs and incentivize state participation. 

The two-bill framework includes:

Interstate Paid Leave Action Network Act (I-Plan Act), which would create an interstate program to harmonize administration of and compliance with state paid leave programs. 

• States participating in the program would adopt a single policy and administration standard - meaning compliance requirements for employers would be uniform across the different state participants.

• Participant states would receive federal grant money to carry out the program.

The Paid Family Leave Public-Private Partnership Act, which would establish a grant program to incentivize states to establish paid leave programs that participate in the I-Plan. 

• Grants would be conditional on the following criteria, among others:

  • Participation in the I-Plan;

  • Partnership with a private entity to assist with administration;

  • Programs must provide wage replacement of at least a 50% rate and at least six weeks of paid family leave.

The bad news: The framework would not preempt any state laws - a key goal of any federal paid leave law for large employers. 

The good news: Even without preemption, the framework’s design could potentially result in significantly more coordination and uniformity among different state paid leave programs than exists today. 

What’s next: After soliciting more stakeholder input, the Working Group plans to introduce the bills in early 2025. HR Policy has worked closely with the Working Group and will provide them with additional input.

• Please contact Greg Hoff ([email protected]) or Spencer Bell ([email protected]) to provide input for our comments to these proposals.