7 States with the Best Family and Medical Leave Programs — and How They Could Affect Your Finances

For decades, maternity leave was placed in the hands of businesses and their human resource departments. Paid time off to care for a newborn, not to mention job protection for new parents, varied dramatically between companies. In 1993, then-President Bill Clinton signed the Family and Medical Leave Act (FMLA) to provide unpaid job protection for U.S. workers on leave to care for family members or newborns.

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It was an important first step toward supporting parents in the workplace, as well as workers who would eventually become the “sandwich generation,” the cohort currently caring for children and aging parents.

In 2002, California introduced a state-administered family medical leave program, followed by New Jersey and Rhode Island, according to the Department of Labor website.

It wasn’t until decades later, in 2017, that New York joined these states, introducing the most robust Paid Family Leave program at the time. The legislation kicked off a trend of state programs that support families caring for young children, older adults, ill or injured family members, and military families with a deployed spouse.

“For years, paid leave just wasn’t on the radar in most states. When New York introduced PFL in 2017, phasing in the benefits up to the maximum of 67% of an employee’s average weekly wage, it launched a trend,” Michael S. Cohen, president and CEO of The DBL Center, a New York-based insurance wholesaler, said. “Now, 13 states and Washington D.C. require employers to provide paid family and medical leave, with two more starting in 2026.”

Another 10 states have voluntary paid family leave programs, according to the Bipartisan Policy Center.

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How PFML Affects Your Paycheck

Your state’s paid family and medical leave policies can affect how you plan for maternity leave or the steps you take if you’re caring for an older parent or other family member. In states that offer PFML, 12 weeks is the standard benefit duration. Most states allow you to take incremental leave in hours or days, which can be handy to plan for things like doctor’s appointments or if you’re sharing caregiving duties with another family member.

The premium cost is typically 1% or less of an employee’s pre-tax wages and is sometimes shared between the employer and employee. The difference in your paycheck is negligible for a benefit that can help so many families.

New couples planning for children may want to consider state PFML policies before they buy a home, especially if they have job flexibility or can work remotely. Salary continuity of $1,000+ per week, in some cases, can make a big difference when you’re planning for a baby.

In the case of remote workers, most employees will file for PFML in the state where they work, regardless of where the company’s office is located, according to Cohen. However, employers may not always be aware of state laws outside their home state, so it’s important for workers to understand the benefits available.

PFML is available for both the birthing and non-birthing parent, so a couple can take their 12 weeks separately, eliminating potential daycare costs for the first six months of an infant’s life.

Which State Has the Best Paid Family and Medical Leave Program?

The DBL Center recently released a list of 7 states with the best PFML programs available through private carriers.

“The cost savings and personalized service provided when businesses can write PFML through a private carrier exceeds anything offered through any of the state insurance funds,” Cohen explained. “Plus, when a business owner privatizes required benefits, a knowledgeable broker can help them use that savings on dental, vision, long-term care or group life insurance. Workers and business owners both win with better benefits.”

To calculate the best states for PFML, The DBL Center factored in the maximum weekly benefit; the cost of the premium and whether it’s funded by employees, employers, or shared; and which businesses are required to provide the benefit. Then, it compared the maximum benefit to the cost of living in that state to determine which state offered the best benefit relative to the cost of living.

Here are the 7 states where you’ll get the most bang for your buck if you have to file a PFML claim.

Will More States Introduce PFML?

“Minnesota will roll out paid family and medical leave starting in 2026,” Cohen confirmed. Along with that, Maryland’s paid family and medical leave program will begin offering benefits in January 2028.

Until the U.S. introduces a federal program, states with PFML offer new parents and anyone caring for a loved one a financial benefit to make challenging times easier. Understanding the benefits available in your state can help you take advantage of these programs when you need them.

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This article originally appeared on GOBankingRates.com: 7 States with the Best Family and Medical Leave Programs — and How They Could Affect Your Finances