PFML Can Be Daunting To Employers, But It Doesn't Have To Be - Insurance News | InsuranceNewsNet

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January 21, 2021 From the Field: Expert Insights
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PFML Can Be Daunting To Employers, But It Doesn’t Have To Be

By Rene McDonald

With more U.S. households dependent upon dual incomes and a growing sandwich generation of full-time workers raising children and caring for aging family members simultaneously, paid family medical leave is in the interest of everyone who has a job.

At the turn of 2020, paid family leave was on the minds of millions of Americans – it was seen as a nonpartisan issue –– considered a must-have and not a nice-to-have. However, what we did not know going into 2020, was that our way of life was going to be upended by the COVID-19 pandemic –– an event that has served as an unexpected catalyst, pushing the need for paid family medical leave laws more urgently than ever before.

The Increasing Relevance Of Paid Family Medical Leave

In the context of the pandemic, paid family medical leave has taken on a new meaning and a new level of relevance. While Americans have adjusted to social distancing and, in many cases, the remote workplace, the daily juggle of work-life balance has become increasingly challenging and stressful. The pandemic has underscored the importance and necessity of paid family medical leave. For example, states such as New York have expanded their existing PFML law to include employees with dependents under mandatory quarantine, among other changes.

Meanwhile, employers are navigating how to survive the impact of COVID-19 on their businesses and their people. Being competitive and compliant with new and evolving legislation around paid family medical leave was one of the greatest challenges and concerns for U.S. employers before the pandemic hit. Today, we are seeing companies work harder than ever before to stay on top of evolving legislation.

Unprepared And Overwhelmed Employers

A new study reveals that nearly half of U.S. employers are unprepared to administer paid leave programs, citing lack of bandwidth and expertise as two key areas of concern. These findings shed light on the complexity faced by employers when integrating paid leave programs with existing policies due to varying state requirements.

For overwhelmed employers and human resource teams, this is the perfect time for delegation. Partnering with in-house legal or communications teams is a good starting place; however, smaller companies often have one HR person to manage PFML compliance in addition to other human resources responsibilities. In either case, outsourcing administration to an insurance carrier is another option that can help unburden employers and ensure program compliance.

Err On The Side Of Over-Communication

When it comes to promoting important benefits like PFML to employees, it can’t be done often enough. There is no reason for employees not to take advantage of a benefit the employees, and often the company, is already paying for such as PFML. In order to help workers take advantage of paid leave, state law requires employers to, at the very least, inform employees of their paid leave benefits by posting a notice in a conspicuous location.

In today’s largely remote virtual workforce, this is not enough. Best practices can include meeting employees where they are, erring on the side of over-communication to make sure their employees understand what paid leave options are available to them. Using every tool in the toolbox such as intranet, newsletters, social media and virtual meetings to talk about paid leave options should all be part of an ongoing conversation, especially now as we navigate open enrollment and beyond.

Prioritize Employee Health

Focusing on both the health and mental health of employees is paramount for employers amid a pandemic. It is critical for employers to educate and inform employees of their rights to take time away from work when needed. Whether it’s to have a baby, adopt or foster a child, take care of a sick family member, or care for an individual's own serious medical condition, PFML gives employees the time they need to focus on what matters most. Supported and engaged employees are also loyal and productive employees. Having an employer that prioritizes employee health is critical in the time we are living in.

At the end of the day, paid family medical leave is here and not going away as we see more and more states joining the conversation. Employers should make sure they're aware of and understand these laws so they can ensure compliance and educate employees on their rights. Prepared and proactive employers who engage their organizations from the top down will experience a win-win.

Rene McDonald is a product manager at The Standard. She can be reached at [email protected].

© Entire contents copyright 2021 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

 

Rene McDonald

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