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2025 state leave law updates: Colorado, Iowa, Oregon, Rhode Island, Vermont & Washington

Employers in Colorado, Iowa, Oregon, Rhode Island, Vermont and Washington must prepare for more 2025 leave law changes. These updates impact paid family and medical leave programs, expand eligibility and require employers to update policies and systems for compliance.

Colorado – FAMLI Program Weekly Benefit Update

Effective July 1, 2025:

  • New Maximum Weekly Benefit: $1,381.45 (up from $1,324.21)
  • Based on Updated State Average Weekly Wage (SAWW): $1,534.94

Employer action steps

Adjust private plans and benefit systems to reflect the new maximum benefit

Iowa – Equal Treatment for Adoptive Parents

Effective July 1, 2025:

  • Adoptive parents must receive the same leave treatment as biological parents.
  • Applies to all Iowa employers.
  • Covers adoptions of children up to age 6. 
  • Excludes agricultural workers and independent contractors. 
  • Disability benefits apply only if a qualifying disability exists.

Employer action steps

Update leave policies and train HR teams on post-adoption benefits

Oregon – Paid Leave Oregon (PLO) Benefit Adjustments

Effective July 6, 2025:

  • Minimum Weekly Benefit: $68.19 (up from $65.36)
  • Maximum Weekly Benefit: $1,636.56 (up from $1,568.60)

Employer action steps 

Align equivalent plans and top-offs with new benefit thresholds

Rhode Island – TDI & TCI Weekly Benefit Increase

Effective July 1, 2025:

  • Maximum Weekly Benefit: $1,489 (up from $1,444)
  • Dependent Benefit Cap: $1,103 (up from $1,070)

Employer action steps

Update payroll systems and benefit plans

New leave laws 2025

Vermont – Expanded Parental and Family Leave Act

Effective July 1, 2025:

  • Expanded Eligibility:
    • Includes airline flight crew employees under FMLA-equivalent rules
  • New and Expanded Leave Reasons:
    • Parental Leave: Recovery from childbirth, miscarriage, foster child bonding (now up to age 18) 
    • Safe Leave: For victims of domestic violence, sexual assault or stalking 
    • Qualifying Exigency Leave: For military emergencies 
    • Bereavement Leave: Up to 2 weeks within a year of a family member’s death
  • Expanded Family Definitions: 
    • Now includes grandparents, grandchildren, siblings and individuals within loco parentis relationships. 
    • Applies to both the employee’s and their spouse’s or partner’s relatives. 
  • Additional Provisions:
    • Removes 6-week cap on use of accrued leave
    • Allows use of short-term disability insurance during unpaid leave
    • Clarifies notice requirements for emergent leave
    • Introduces documentation and privacy rules for sensitive leave types
    • Expands exceptions to compensation return for safe leave

Employer action steps

Conduct a full policy review and retrain HR and benefits personnel on expanded rules.

Washington – PFML Program Benefit Update

Effective January 1, 2026:

  • New Maximum Weekly Benefit: $1,647 (up from $1,542)
  • Minimum Benefit: Remains at $100

Employer consideration

Update voluntary plans and supplemental benefit structures in advance.

How Alight Supports Employers

Alight Leave Solutions will update its leave administration services to reflect these recent legislative changes. This includes updates on paid and unpaid family and medical leave offerings, ensuring compliance with state-specific requirements, as well as training our internal teams on the changes.

 

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Employers should consult legal counsel for guidance specific to their organization.

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