Loving paid leave to death
Plus nixing noncompetes, reining in spam, and tax relief for dying rich
The state’s Paid Family & Medical Leave program might be the Legislature’s most popular policy this century. Twelve paid weeks off for new parents1 or folks dealing with a medical problem, at a fairly low cost — what’s not to like?
And that’s the problem: it’s being loved to death.
The PFLM fund last year started dipping in the red, and projections show the red ink is going to get worse. It is projected to be insolvent in 2030 if nothing is changed, in large part because claims have doubled in just four years. The Employment Security Department has been raising a red flag for a bit, but amped up the warnings last year with scenarios that could force a 40% or more cut in maximum benefits over the next decade. The 2026 Legislature responded with some tweaks, but the consensus is that it’s a good issue to hammer out off-season.
Why you should care: The looming insolvency queues up complex negotiations between labor, business, bureaucrats and lawmakers on both sides of the aisle who don’t want to see the program die. There are many potential fixes, but in the end, either it needs more money (workers and employers pay more) or benefits need to be cut. The ESD projections suggest both are probably needed, but in what doses? Mostly, you should care because nearly 270,000 people got paid leave last year, and who knows when you might need it.
