What is paid family leave?

Paid family leave (PFL) is a benefit that allows eligible employees to take time off work—with partial pay—to care for a new child, a seriously ill family member, or to address certain family-related needs like military deployments. Unlike unpaid leave under the Family and Medical Leave Act (FMLA), paid family leave provides wage replacement during the leave period.

For small business owners, understanding how paid family leave works—especially in states where it's required—is key to staying compliant and supporting your team during life’s big moments. With Homebase, employers can manage time off requests, track leave balances, and maintain accurate records all in one place.

What does paid family leave cover?

Paid family leave programs vary by state, but generally allow employees to take time off for:

Bonding with a new child – including birth, adoption, or foster placement
Caring for a seriously ill family member – such as a spouse, parent, or child
Assisting with a family member’s military deployment

Some states also include additional qualifying events, like caring for extended family members or addressing issues related to domestic violence.

How is paid family leave different from FMLA?

While both PFL and FMLA support employees taking time off for family or medical reasons, there are key differences:

FMLA is a federal law that guarantees up to 12 weeks of unpaid, job-protected leave but only applies to certain employers (those with 50+ employees) and employees (who have worked 1,250 hours in the past 12 months).
Paid family leave is typically administered at the state level and offers partial wage replacement for eligible employees.

Some states require employers to participate in their PFL program even if they don’t meet the size requirements for FMLA.

Which states offer paid family leave?

As of 2025, the following states have active paid family leave programs:

Each program has different eligibility criteria, benefit amounts, and contribution rules. Some are funded by employee payroll deductions, while others involve shared contributions from employers.

How much does paid family leave pay?

Benefit amounts vary by state and are typically a percentage of the employee’s average weekly wage, up to a capped amount. For example:

California: About 60-70% of weekly wages for up to 8 weeks
New York: 67% of weekly wages, up to a set cap, for up to 12 weeks
Washington: Up to 90% of weekly wages, depending on income

Employers should check their state’s specific guidelines for current benefit rates and duration.

What are employer responsibilities?

If you operate in a state with a PFL program, here’s what you need to know:

Withhold employee contributions if the program is funded via payroll taxes
Submit payments to the state agency on schedule
Notify employees of their rights under the program
Track leave balances and requests for compliance and planning
Ensure job protection where applicable (in some states or if FMLA applies)

Failing to comply with your state’s PFL requirements could result in penalties, so it’s important to stay informed.

With Homebase Payroll, you can set up automatic tax withholdings and track leave records so everything stays organized.

Try Homebase Payroll today to streamline compliance and employee leave management.

Should small businesses offer paid family leave even if it’s not required?

Even if your state doesn’t mandate paid family leave, offering it voluntarily can be a great way to support employees and build a positive workplace culture. Providing paid leave:

Shows employees that you care about their well-being
Helps retain talent, especially among working parents
Improves morale and reduces burnout
Makes your business more competitive when hiring

Offering flexible or partially paid leave policies can also give you more control over costs while still providing meaningful support.

How Homebase helps you manage time off and leave

Tracking time off—especially when it’s for something as important as family leave—can get tricky without the right tools. Homebase makes it easier by:

Allowing employees to request leave directly through the app
Automatically tracking accrued PTO and leave balances
Helping schedule around employee availability
Generating reports for compliance and recordkeeping

Sign up for Homebase to keep leave policies clear, fair, and easy to manage.

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