2026 Employee Benefits Market Outlook 19 Key Trends Shaping Employee Leave Expansion In recent years, there have been significant changes in employee leave laws at the state level, with a growing number of jurisdictions passing and expanding related legislation. As leave entitlements expand, various trends have emerged that employers must follow to remain legally compliant and provide a workplace with competitive benefits for employees. Notably, some states have implemented new PSL and PFML programs, while others have updated their PSL and PFML laws to stay current with the provisions of the newer legisla-tion. Other significant trends include the proliferation of PSL-focused ballot measures, additional reasons for leave, expanded definitions of family member, and the redesigning of state PFML laws to work with the federal Family and Medical Leave Act (FMLA). Another preva- lent trend has been the emergence of voluntary paid family leave insurance programs. At the federal level, courts are increasingly ruling that the USERRA requires employers to provide paid leave for military service if they compensate employees for comparable types of leave. Many of these leave trends will likely continue through 2026 and beyond. Employers should take particular note of the trends below and watch for related changes, as they may need to amend their leave poli- cies and practices in the near future to stay compliant. New and Amended State PSL and PFML Programs States across the country are enacting their own PSL laws, with close to half of all states having either PSL laws or laws mandating paid employee leave for any reason. Additionally, some states are enacting laws that address PFML for employees. In general, PFML programs provide employees with partial wage replacement during time off to care for an ill family member or for their own medical conditions. Employers should also be mindful of leave require- ments in states that were among the earliest to enact such legislation. It is a trend among these jurisdictions to update their PFML and PSL laws to stay current with the types of provisions the newer legislation contains. Amendments are being passed to provide enhanced requirements, including coverage for more employees and increased leave time.