Both paid family leave (PFL) and paid family and medical leave (PFML) provide people with essential time off work—plus wage replacement—to navigate major life changes. Employees can use PFL or PFML to bond with a new child, care for a sick loved one, or tend to their own personal health.
The United States doesn’t have a federally mandated paid leave program, but 14 states, along with the District of Columbia, have passed their own PFL initiatives. However, Kentucky isn’t one of them, at least not yet.
If you employ people living in Kentucky, you’re not required to offer them PFL or PFML, but you are subject to federal leave guidelines. We’ll explain exactly what that means and how to stay compliant, plus break down a few benefits of incorporating paid leave into your workplace policies.
Does Kentucky provide paid family and medical leave to employees?
Kentucky doesn’t have a state-mandated PFL or PFML program for private-sector workers. But like many other states, including Arizona and Florida, Kentucky provides eligible state employees with very modest paid leave.
Under Kentucky’s program, full-time Kentucky state employees can get up to six weeks of Employer Paid Leave (EPL) upon hire, which they can use for:
Bonding and caring for a newborn, adopted, or fostered child
Managing or recovering from a serious health condition
A state employee’s EPL renews after they’ve completed 120 months of service (10 years), and again after 240 months of service (20 years of work).
What about paid disability leave?
Kentucky doesn’t have a mandatory paid disability leave program either. Disability leave guarantees workers partial wage replacement when they can’t work due to a non-work-related illness or injury.
Unless you purchase disability insurance for your workers and split the cost of premiums with them, your employees will have to rely on unpaid federal leave when they need extended time off work.
How does federal leave work in Kentucky?
The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave for certain reasons. Not every employee in Kentucky qualifies for FMLA leave—and not every employer is obligated to comply with FMLA.
FMLA only applies to employers that have 50 or more employees working within a 75-mile radius of their business. They’re considered “covered employers,” which means their employees are entitled to federal leave for:
Bonding: With a new child, including newborn, adopted, and fostered children
Caregiving: For a spouse, child, or parent with a serious health condition
Medical reasons: Managing a serious personal health condition
Military exigency: Managing affairs when a spouse, child, or parent is on or called to active duty
Which employees qualify for FMLA leave?
FMLA eligibility requirements can be strict. In addition to working for an employer that has at least 50 employees, an employee has to:
Need leave for one of qualifying reasons listed above
Have worked for their employer for at least one year (consecutively or non-consecutively)
Have over 1,250 hours of service (roughly 25 hours a week) in the 12 months immediately before leave begins
7 steps Kentucky employers can take to comply with FMLA
If you’re a covered employer under FMLA, here’s what you need to do to follow federal law:
1. Hang an FMLA poster in your workplace
You’re required to post a flyer from the US Department of Labor (DOL) in your workplace that explains:
What FMLA leave is
Which protections are afforded to employees
How to qualify
How to file a complaint with the Wage and Hour Division
The poster should be in English and any other languages your employees regularly speak.
2. Give written notice to FMLA-eligible employees
You’re also obligated to give written notice to all your FMLA-eligible employees explaining how to request a leave and when (ideally with 30 days of notice). This can be a separate form you hand out to employees or a write-up in your employee handbook.
You can give notice immediately upon hiring someone, once a year as part of an HR refresher, or when an employee officially hits their hours or employment length requirements.
Keep in mind that if you don’t follow the DOL’s posting and notification requirements, you could be assessed for a civil money penalty.
3. Distribute the Rights and Responsibilities Notice
When one of your employees requests leave, you have five days to give them their Rights and Responsibilities Notice, which outlines the details of their leave, including the protections they can count on.
The notice explains:
The 12-month period in which the employee’s leave can take place, along with their expected leave start and return dates
The employee’s right to job protection
The employee’s right to substitute PTO for FMLA leave, and whether or not the employer will require that
The employee’s right to receive continued health insurance, and whether or not they need to continue paying health insurance premiums while on leave
Whether or not the employee needs to provide certification for the leave (in the form of a doctor’s note, for example)
You’re allowed to require certification if an employee requests leave for personal medical reasons, caregiving duties, or military exigency—but not if an employee requests a leave for bonding purposes.
4. Share the Designation Notice
Before an employee’s leave starts, you need to hand out one last document: the Designation Notice. This form lets an employee know that their requested leave qualifies as FMLA leave, and reiterates the benefits and protections they’ll receive on leave.
5. Continue paying health insurance premiums for your employee
One of the rights your employees have on federal leave is consistent health insurance. If you already provide health insurance and pay either some or all of your employees’ premiums, you need to continue paying when they’re out on leave.
6. Restore employees to the same (or comparable) role
When an employee on FMLA leave returns to work, they’re guaranteed their same role—or one comparable in pay, benefits, title, work times, and responsibilities. It’s up to you to make sure you maintain an employee’s position during leave and reinstate them when they’re back.
Related: Here’s what you need to know before terminating an employee.
7. Maintain records
It’s crucial to hold onto all payroll and personnel records related to leave for a minimum of three years. That includes payroll receipts, paystubs, official employee requests for leave, documentation of leave start and end dates, and copies of FMLA notices.
The power of offering paid leave in your workplace
Even without state support, you can still offer PFL or PFML to your employees. The benefits are countless and far-reaching.
Not only does paid leave have a wide-ranging, positive impact on public health (like reduced health issues in infants and a lower likelihood of postpartum depression for new mothers), it gives employees more financial security and peace of mind during inherently stressful periods of life.
When your employees feel supported and cared for personally and professionally, they’ll be more likely to engage in their jobs and invest in your business’s success. That level of commitment can translate to higher retention rates and workplace productivity, not to mention easier recruitment efforts when trying to hire.
How to create a PFL policy
Follow these general guidelines to build a leave policy that works for you:
1. Reflect on your goals for leave
Start by considering what you hope to gain from providing paid leave. Your answers will inform your actual policy. Think about:
Your business needs and growth plan: What are your hiring and growth goals in the short and long-term? Have you historically had issues holding onto talented employees or attracting new hires? Paid leave could help resolve those problems.
Your employee demographic: How large is your workforce, and what is the age demographic? Depending on your employee population, you might have more parental or caregiving leaves on the horizon.
Your competition: What are other employers in your field offering for PFL? What do similar businesses in different states offer? You want to make sure you’re in line with industry standards.
2. Explore insurance
You can either purchase leave insurance with a private insurance carrier or pay for leave out of your own pocket. Most businesses choose the former, since it gives you the option to split the insurance premiums with your employees.
Discuss your options with your current insurance broker and business accountant to get a feel for what’s feasible financially.
3. Determine the details
It’s important to define the particulars of your leave policy: the who, what, when, and how, if you will. Consider:
Qualifying leave situations: What constitutes PFML? Having a child, taking care of a family member, and managing a personal health condition are three bases to cover.
Leave duration: How many weeks can your employees take paid leave? Anything is better than nothing, but in general, eight weeks is a good minimum to aim for.
Wage replacement: How much wage replacement will you provide? Most state programs do 50-90% of an employee’s average weekly wage.
Leave eligibility: Who’s eligible for leave? Does it depend on the length of employment or the hours served? Remember: strive for inclusivity with your policy, making it applicable to everyone regardless of their gender or family structure.
For more insights, read through our guide to creating a paid parental leave policy.
Being a business owner in Kentucky
For more resources on running a business or hiring people in Kentucky, bookmark our comprehensive Gusto guides:
