In 2025, the U.S. continued shifting from a handful of early adopters toward a broader state-driven patchwork of paid family and medical leave (PFML) programs, increasing complexity and administrative strain for employers. Several states expanded benefit triggers and advanced programs whose first benefit years begin in 2026. Notable actions included Colorado’s targeted expansion, providing up to an additional 12 weeks of PFML benefits for parents with babies in NICU (Neonatal Intensive Care Unit) starting January 1, 2026, and New York’s new paid prenatal appointment leave, which became effective January 1, 2025. States such as Minnesota have completed implementation of PFML benefits, with employer premium collection scheduled and benefits effective as of January 1, 2026. At the same time, legislative pushback and reversals such as Missouri’s repeal of a voter-approved sick-leave measure and Maryland’s third implementation delay of its PFML program reflect that the legal landscape remains contested and in flux.

Leaves of absence, particularly paid time away from work, are increasingly viewed as a core element of competitive employee benefit packages. Organizations are transforming the employee absence experience through strategic initiatives, policy evolution and rapid technological advancement. Employers are also prioritizing supportive resources and personalized guidance to enhance the leave journey, while the continued expansion of mandated programs is prompting more comprehensive and inclusive policies. Innovations such as real-time data integration and AI-powered solutions are streamlining absence management and enabling holistic program administration. Together, these developments are anticipated to shape a more responsive, compliant and employee-focused approach to absence and leave management in 2026.