2025 State Private Paid Leave Changes And Developments

By FOCUS, A Leonine Business

As of July 2025, 27 states and the District of Columbia have paid leave programs for private employers. These programs typically come in one of two forms. Some states mandate paid leave, with contributions from employers and employees that must be remitted to the state to maintain a fund that employees can then draw from as needed. Other states have paid leave insurance programs, which allows for paid leave plans on the insurance market that may be purchased by employers.

During the November 2024 general elections, Alaska, Missouri and Nebraska had paid leave programs approved by a majority of voters through ballot measures. However, the parameters of the Nebraska paid leave law were modified through legislation enacted in 2025; and Missouri’s program was repealed before ever becoming effective with the signing of HB 567 by Republican Gov. Mike Kehoe on July 10. Legislation is pending in Alaska that would either modify the current law or replace it with a different program. In early 2025, a paid leave program that had originally been approved via ballot measure in Michigan in 2018 finally took effect after spending time in legal limbo through various legislative maneuvers and lawsuits. Of the states that currently have a private paid leave option on the books, Colorado, Rhode Island and Washington each passed legislation in the 2025 session to expand the scope of their respective programs, while New Hampshire enacted a provision that repealed certain outreach and marketing requirements to promote paid leave insurance.

Regarding states that do not have private paid leave laws, the ones that had the most significant developments in 2025 include Hawaii, which adopted a concurrent resolution to convene a working group to develop recommendations for establishing and implementing a paid family and medical leave program; and Nevada, which passed legislation that would have established private employer paid leave requirements, however, the bill was vetoed by Republican Gov. Joe Lombardo. Efforts were made in Wisconsin again to include paid leave in the latest budget bill; however, the provisions were removed before it reached the governor’s desk. FOCUS will continue to monitor developments on paid leave programs in state legislatures across the country.

by Alexis Sly 7/21/25