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

Life happens. Whether it's becoming a new parent, a caregiver for an ailing family member or other similar event, having the flexibility to take extended time off from work is an important benefit for which millions of U.S. workers do not qualify for paid time off. While the Family Leave Medical Act of 1993 provides up to 12 weeks of unpaid time off, the stress between upholding family obligations and losing income is taking a toll on employees' health and financial wellness as well as their employers in the form of lower morale.

According to LIMRA, 77 million Americans ages 18 to 64 identify as unpaid family caregivers, with about 80 percent of that population working full-time. Additional research shows that while more women are choosing to become mothers, they are also increasing time spent at work and on child care. Men are also under obligatory stress, with 76 percent of new fathers only taking one week of paternity leave.

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

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

The political landscape continues to influence when, where and whether PFML could become available to workers across the U.S., and while a federal solution might be ideal for consistency, it will be a slower, more costly process. Understanding how the availability of paid family medical leave can make or break workers' financial health, some states have taken matters into their own hands.

California, Rhode Island, New York, New Jersey, Washington, Massachusetts, Connecticut, Oregon and the District of Columbia have passed paid family leave laws to date. Even though just 15 percent of private sector employees were covered by available programs in 2018, the emergence of new state-run laws and heightened emphasis on the need for such programs shows promise for a faster and broader financial wellness reach; however, it also raises new considerations for benefits brokers and consultants.

Rather than becoming standardized, each state puts its own stamp on PFML legislation, making it challenging for individuals and employers, especially those who operate and have employees in multiple states, to interpret the laws and keep a pulse on emerging ones. Brokers have an opportunity to add value by familiarizing themselves with the respective states' legislations, provisions and requirements and guiding clients through the complexities of states' respective leave programs. To do so, there are a few key questions to keep in mind:

1. Where do current plans need to be optimized to meet new or forthcoming requirements? By keeping a pulse on the regulatory landscape, brokers can engage employers early about design changes to minimize administrative burden and prioritize benefits that improve overall financial wellness.
2. How does the plan account for workers in multiple states? As more states join the PFML fold, employers with employees 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 changes versus a complete overhaul will have a competitive edge in demonstrating consultative value to their customers.
3. What does the state now provide that my client no longer needs to? Avoiding excess coverage will create space for employers to diversify plan options and deliver solutions that best suit employees' needs. If the employer eliminates a benefit already provided by the state, the employer is then freed to either offer additional financial wellness benefits or enhance existing ones.
4. Which carriers will help optimize the end-user experience? Life events associated with PFML tend to be a stressful time full of change. Selecting a carrier that provides administrative assistance in multiple states, as well as holistic financial wellness programs that provide support beyond a single life event such as budgeting tools, student loan assistance and overall financial planning, ensures a comprehensive absence management experience beyond simply what is required by statute. Considering the integration with other medical or absence benefits and simplifying the claims filing process for employees can help employers sustain employee satisfaction with their overall benefits package.

The advent of PFML brings a new dynamic. Insurance and time off benefits are no longer siloed to an individual looking to care for oneself. Workers need paid time off to care for a family member or assist loved ones when a family member is deployed abroad on active military service. Taking on the role of caregiver also creates new financial considerations and strains such as medical bills or increased spending on household items that individuals may have never prepared for. This is an opportunity for employers not only to rethink the benefits that are important to employees, but also how they are presented. Grouping benefits based on the financial gaps they are filling will help employees understand the coverage they need.

More employers are beginning to recognize there is a "Return on Wellness" to be gained by devoting resources to their employees' physical and financial wellness. Lower financial stress results in increased worker productivity and offering benefits that truly help workers address the array of financial concerns they will experience over their lifetimes gives employers a competitive advantage when it comes to recruitment and retention of top talent. With more than 60 percent of Americans having taken or expecting to take time off from work for family or medical reasons, PFML will continue to be one of the most valuable such benefits both for early-stage workers and for those counting the months until they retire.

Leston Welsh is head of products for Prudential Group Insurance.

Read more: 

• Paid family leave benefits saw major gains in 2018
• Tax bill provision designed to spur paid family leave to lower-wage workers
• Americans love paid family leave — just maybe not when others take it