2026 Employee Benefits Market Outlook 20 Employers should be aware of any new or amended state laws taking effect in their jurisdictions in 2026, as well as any new or updated guidance that states may issue. Given the increased state leave activity in recent years, employers may continue to see states pass new PSL and PFML laws and amend older legislation to stay current with new laws. This growth in employee leave mandates is unlikely to abate in 2026, and states that currently do not have leave laws on the books may pass them in the near future. State PSL Ballot Measures Voters in several states have decided on ballot mea- sures that impact the workplace. Ballot measures have included topics such as minimum wage increases and PSL mandates. Employers should review any ballot measures applicable in their respective jurisdictions and update their employment policies, practices and proce- dures to remain compliant with any changes. With voters having approved state ballot measures enacting PSL mandates in the past, it is possible that other states could follow suit in the future. Employers should monitor any developments and seek the advice of a knowledgeable legal professional for specific guidance on implementing the required changes. Expanded Reasons for Leave States are increasingly expanding the circumstances under which eligible employees may take leave. Expanded reasons for leave include bereavement, mis- carriage, prenatal health care, school activities, blood/ organ donation, public health/emergencies and leave for parents with a child in a neonatal intensive care unit. Other developments include the expansion of victim leave laws and the augmentation of state leave pro- tections related to different types of service, such as emergency responder and military family leave. Extrapolating from recent state leave law activity, employers can expect that future state PSL and PFML laws may include these expanded reasons for leave. It is also possible that states may expand their leave laws to cover new reasons for leave that are not yet addressed, particularly in states with employee-friendly laws. Employers should stay up to date on expanded reasons for leave in their respective jurisdictions, as they may soon be required to provide additional types of leave to employees. Expanded Definitions of Family Member Besides expanding the reasons for leave, states are also broadening the definition of a family member to include individuals who are not part of the employ-ees immediate family. Such legislation may allow employees to take leave to care for a relative, such as a sibling, or for another designated person. Given the general expansion of leave laws, employers should expect that their states may choose to expand the list of individuals for whose care eligible employees may use leave. Applicable individuals may soon include any person designated by an employee, such as a friend or neighbor. Redesigning State PFML Laws to Work With the FMLA Certain states are amending their PFML laws to work more smoothly with the federal FMLA. Such amend- ments include efforts to reduce PFML or employment protection when employees take, for example, FMLA leave before using PFML in the same yeara practice known as stacking leave.