Sun Life US announced it has expanded its Family Leave Insurance (FLI) offering to Arizona, Wyoming, and Pennsylvania, bringing the total number of states where its fully insured paid family leave coverage is available to 14.
Sun Life already offers FLI in Alabama, Arkansas, Florida, Kentucky, Oklahoma, Tennessee, and Texas, with further expansions expected later this year.
In February, Sun Life US expanded the program to Georgia, Louisiana, Mississippi, and South Carolina.
Family Leave Insurance broadens employees' access to paid leave benefits in states that do not mandate paid family leave programs. Employers are able to provide this coverage without needing to implement self-funded solutions.
In the US, the landscape of paid family leave (PFL) continues to evolve, marked by state-level expansions, legislative initiatives, and ongoing disparities in access.
It is worth noting that the US remains without a federal paid family leave mandate. The Family and Medical Leave Act (FMLA) of 1993 provides eligible workers with up to 12 weeks of unpaid, job-protected leave. However, this leaves many without paid options during critical family or medical events.
As of March 2024, 27% of private industry workers and 28% of state and local government workers had access to paid family leave benefits.
Last year, approximately 11.1 million workers needed leave but did not take it, with nearly 7.3 million citing the inability to afford unpaid leave as the primary reason.
Sun Life says that it has been active in supporting paid leave initiatives, including working with state legislatures to incorporate private plan options alongside mandated programs and advocating for proposals that would extend the employer federal paid leave tax credit.
Sun Life's FLI product is currently structured to align with the tax credit and will adjust in line with any future changes.
Sun Life’s FLI is based on the company’s long-standing expertise in disability leave management and return-to-work services. The offering is available to all eligible employees, regardless of the state they reside in, and provides a fully insured option intended to help small and mid-sized employers manage the financial aspects of providing paid leave.
Sun Life also administers private paid family and medical leave (PFML) benefits in several states with mandated programs.
Joi Tillman (pictured above), president of Group Benefits at Sun Life US, said FLI allows employers to provide paid family leave benefits that match their business needs and offer employees a valuable resource.
What are your thoughts on this story? Please feel free to share your comments below.
