Glossary · Compliance
PFML (Paid Family and Medical Leave)
State-mandated paid leave programs that fund time off for family and medical reasons, typically through payroll-tax contributions.
A growing number of states (CA, NJ, NY, RI, WA, MA, CT, OR, CO, MD, DE, ME, MN) have enacted PFML programs. Funding mechanisms vary: some are employer-paid, some employee-paid, and some split. Benefit duration and wage-replacement rates also vary materially.
PFML compliance is one of the highest-friction areas of multi-state employment, and PEO administration is frequently cited as a primary reason for PEO adoption among employers with workforces in multiple PFML states.
Related terms
- FMLA (Family and Medical Leave Act)Federal law providing eligible employees of covered employers up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons.
- PFL (Paid Family Leave)A subset of state paid-leave programs covering bonding with a new child or caring for a family member with a serious health condition.
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