Sun Life Expands Family Leave Insurance to 14 States Amid Evolving Paid Leave Landscape

Sun Life US has expanded its Family Leave Insurance (FLI) coverage to Arizona, Wyoming, and Pennsylvania, increasing its availability to 14 states. This expansion follows earlier rollouts in states including Alabama, Arkansas, Florida, Kentucky, Oklahoma, Tennessee, Texas, and additional states added in February such as Georgia and Louisiana.

Sun Life's FLI product offers fully insured paid family leave benefits to employees in states lacking mandated paid family leave programs, providing employers with an alternative to self-funded solutions. The absence of a federal paid family leave mandate in the U.S. means many employees lack access to paid leave despite federal protections like the Family and Medical Leave Act (FMLA), which only provides unpaid job-protected leave.

As of March 2024, just over a quarter of private-sector and state/local government workers have paid family leave benefits, leaving millions unable to afford unpaid leave during critical family or medical events. Sun Life's approach aligns with ongoing legislative efforts, including advocating for employer tax credits and incorporating private plan options alongside mandated programs.

The FLI product leverages Sun Life’s expertise in disability and leave management to deliver solutions tailored for small and mid-sized employers, aiming to manage the financial risks of providing paid family leave benefits. Additionally, Sun Life administers private paid family and medical leave benefits in states with existing mandates, supporting employers in navigating the evolving leave landscape.