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The Employer Handbook Blog
There’s a new BIPARTISAN Paid Leave Proposal in Congress. Here’s What Employers Need to Know About It.
A pair of lawmakers from opposite sides of the aisle just dropped one of the most ambitious paid leave proposals in years. It won’t create a national mandate—but it could reshape the paid leave landscape for employers across the country.
TL;DR: A new bipartisan bill—the More Paid Leave for More Americans Act—aims to boost paid family leave access through a mix of state grants and interstate coordination. For employers, this could mean more consistent multistate compliance rules down the line—but also a growing patchwork in the short term. Here’s what’s in the bill and what it could mean for your workplace.
Two New Tools, One National Goal
On April 30, Reps. Chrissy Houlahan (D-PA) and Stephanie Bice (R-OK) introduced a two-pronged legislative proposal to expand access to paid family and medical leave while reducing administrative burdens on states and employers.
The More Paid Leave for More Americans Act consists of:
- The Paid Family Leave Public-Private Partnerships Act
- The Interstate Paid Leave Action Network Act (I-PLAN Act)
Let’s break down what each part does—and how it might affect employers.
1. Paid Family Leave Public-Private Partnerships Act
This part of the bill encourages states to launch or expand paid family leave programs through competitive grants from the U.S. Department of Labor. But there’s a twist: to get the funding, a state must partner with private entities (like insurance carriers), similar to the model used in New Hampshire.
Key features:
- A three-year pilot grant program with awards ranging from $1.5 million to $7 million per state.
- States must offer at least six weeks of leave for birth or adoption.
- Leave benefits must provide:
- 67% wage replacement for low-income workers, scaling down to
- 50% replacement for higher earners.
- Employers may self-administer benefits as long as they meet or exceed state minimums.
- States must participate in I-PLAN to qualify.
Employer takeaway: In states that adopt this model, private carriers—not state agencies—could become your leave administrators. That may reduce administrative friction but could increase variation between carriers and plans.
2. Interstate Paid Leave Action Network (I-PLAN Act)
If the first bill helps states launch programs, the second helps them work together.
I-PLAN would establish a formal network of state officials (“state focals”) who agree to harmonize key aspects of their leave programs. It includes:
- Policy alignment on definitions (e.g., family member, base period, eligibility).
- Administrative standards for employer notice, payroll contributions, and opt-outs.
- A streamlined process for multistate workers to access benefits from a “primary” state.
To support implementation:
- A national intermediary would receive funding to support coordination, stakeholder engagement, and technology development for data sharing (e.g., wage histories).
- States could receive Conforming Grants and Implementation Grants—up to $8 million each—to offset administrative and small business costs.
Employer takeaway: I-PLAN is designed to reduce the compliance nightmare of navigating multiple state programs—especially for multistate employers. If it works, you might eventually see uniform definitions and fewer surprises in eligibility or payroll rules.
If you’re curious how this proposal compares to earlier federal efforts, take a look at this helpful explainer from the Bipartisan Policy Center. You’ll see how the current approach differs from everything from social insurance to pandemic-era relief.
What Happens Next
The legislation is still in its early stages. It doesn’t mandate paid leave, nor does it create a federal program. Instead, it incentivizes states to act and coordinate. For employers, especially those operating across multiple states, this approach could be a blessing—or at least a step toward clarity.
But in the meantime, businesses should prepare for:
- More states launching paid leave programs, especially with federal grant money on the table.
- Increased dialogue with insurance carriers offering employer-sponsored paid leave benefits.
- Potential adjustments to internal leave policies to align with evolving state standards and equivalency requirements.
Final Thought
The bipartisan nature of the proposal and its emphasis on public-private flexibility may give it more traction than past paid leave efforts. But even if it stalls, employers should see it as a signal: states and Congress are still actively pursuing ways to expand paid leave—and to bring employers along for the ride.