s morestates join the PFML fold, employers with employees located in morethan one state (including remote workers) may be required to updatetheir plans more frequently than normal. (Photo:Shutterstock)

Life happens. Whether it's becoming a new parent, a caregiverfor an ailing family member or other similar event, having theflexibility to take extended time off from work is an importantbenefit for which millions of U.S. workers do not qualify for paidtime off. While the Family Leave Medical Act of 1993 provides up to12 weeks of unpaid time off, the stress between upholding familyobligations and losing income is taking a toll on employees' healthand financial wellness as well as their employers in the form oflower morale.

According to LIMRA, 77 million Americans ages 18 to 64identify as unpaid family caregivers, with about80 percent of that population working full-time.Additional research shows that while more women arechoosing to become mothers, they are also increasing time spent atwork and on child care. Men are also under obligatory stress, with76 percent of new fathers only takingone week of paternity leave.

Related: How close are we to a federal paid family leavelaw?

Unless employers and government intervene with financiallysustainable and easily administered paid family and medical leave(PFML) plans, the outlook for millions of workers is grim, andtheir long-term financial instability will only deepen Americans'current financial crisis.

The political landscape continues to influence when, where and whether PFML could becomeavailable to workers across the U.S., and while a federal solutionmight be ideal for consistency, it will be a slower, more costlyprocess. Understanding how the availability of paid family medicalleave can make or break workers' financial health, some states havetaken matters into their own hands.

California, Rhode Island, New York, New Jersey, Washington,Massachusetts, Connecticut, Oregon and the District of Columbiahave passed paid family leave laws to date. Even though just15 percent of private sector employees were covered byavailable programs in 2018, the emergence of new state-run laws andheightened emphasis on the need for such programs shows promise fora faster and broader financial wellness reach; however, it alsoraises new considerations for benefits brokers and consultants.

Rather than becoming standardized, each state puts its own stampon PFML legislation, making it challenging for individuals andemployers, especially those who operate and have employees inmultiple states, to interpret the laws and keep a pulse on emergingones. Brokers have an opportunity to add value by familiarizingthemselves with the respective states' legislations, provisions andrequirements and guiding clients through the complexities ofstates' respective leave programs. To do so, there are a few keyquestions to keep in mind:

1. Where do current plans need to be optimized to meet newor forthcoming requirements? By keeping a pulse on theregulatory landscape, brokers can engage employers early aboutdesign changes to minimize administrative burden and prioritizebenefits that improve overall financial wellness.
2. How does the plan account for workers in multiplestates? As more states join the PFML fold, employers withemployees located in more than one state (including remote workers)may be required to update their plans more frequently than normal.Brokers who can design modular plans that require fewer changesversus a complete overhaul will have a competitive edge indemonstrating consultative value to their customers.
3. What does the state now provide that my client nolonger needs to? Avoiding excess coverage will createspace for employers to diversify plan options and deliver solutionsthat best suit employees' needs. If the employer eliminates abenefit already provided by the state, the employer is then freedto either offer additional financial wellness benefits or enhanceexisting ones.
4. Which carriers will help optimize the end-userexperience? Life events associated with PFML tend to be astressful time full of change. Selecting a carrier that providesadministrative assistance in multiple states, as well as holisticfinancial wellness programs that provide support beyond a singlelife event such as budgeting tools, student loan assistance andoverall financial planning, ensures a comprehensive absencemanagement experience beyond simply what is required by statute.Considering the integration with other medical or absence benefitsand simplifying the claims filing process for employees can helpemployers sustain employee satisfaction with their overall benefitspackage.

The advent of PFML brings a new dynamic. Insurance and time offbenefits are no longer siloed to an individual looking to care foroneself. Workers need paid time off to care for a family member orassist loved ones when a family member is deployed abroad on activemilitary service. Taking on the role of caregiver also creates newfinancial considerations and strains such as medical bills orincreased spending on household items that individuals may havenever prepared for. This is an opportunity for employers not onlyto rethink the benefits that are important to employees, but alsohow they are presented. Grouping benefits based on the financialgaps they are filling will help employees understand the coveragethey need.

More employers are beginning to recognize there is a "Return onWellness" to be gained by devoting resources to their employees'physical and financial wellness. Lower financial stress results inincreased worker productivity and offering benefits that truly helpworkers address the array of financial concerns they willexperience over their lifetimes gives employers a competitiveadvantage when it comes to recruitment and retention of top talent.With more than 60 percent of Americans having takenor expecting to take time off from work for family or medicalreasons, PFML will continue to be one of the most valuable suchbenefits both for early-stage workers and for those counting themonths until they retire.

Leston Welsh is head of productsfor Prudential Group Insurance.

Read more: 

• Paid family leave benefits saw major gains in2018
• Tax bill provision designed to spur paid familyleave to lower-wage workers
• Americans love paid family leave — just maybe notwhen others take it