Multistate Compliance

Paid Leave for Multistate Employers: Which State’s Program Applies

For most state paid leave programs, coverage follows where the work is done, not where the employee lives.

If you have remote or traveling employees, more than one state’s program can apply to your payroll. This guide explains the common rule, what the major programs say about out-of-state workers and how state leave runs alongside the FMLA.

Back to State Paid Family and Medical Leave Laws

The Detail

The Common Rule: Where the Work Is Localized

State agencies look at where the job is based, in the same way unemployment insurance does.

Work location beats home address. New York, New Jersey, California and Washington each state, in their own words, that an employee’s home state does not decide coverage. What matters is where the employee works.

Localized work. New York requires employment to be localized in the state, with any work outside it only incidental or temporary. Washington treats an out-of-state resident who works entirely in Washington as localized there, and uses the employer’s base of operations as the tiebreaker when work cannot be localized to one state.

Telecommuting. New York says the rule also applies to someone telecommuting from another state for a New York-based employer.

State by State

What the Agencies Say

The programs differ on the edge cases, so check the agency for the employee in front of you.

New York. Where the employee lives does not matter in deciding whether the job is New York employment.

New Jersey. Employees who work in New Jersey may be eligible regardless of where they live.

Connecticut. Only employees who work in Connecticut can participate. A Connecticut resident working in another state is not eligible for the Connecticut program, though the other state’s program may apply.

Washington and California. Washington applies premiums to out-of-state residents whose work is localized there. California says where you live does not affect eligibility, and looks at whether the job is based in California and State Disability Insurance is paid.

FMLA

How State Leave Works Alongside the FMLA

The federal FMLA and a state program are separate laws with separate rules.

Unpaid federal leave. FMLA leave is generally unpaid. Under 29 CFR 825.207 an employee may choose to use accrued paid leave during it, or the employer may require that, and the paid leave runs at the same time as the FMLA leave.

State programs are separate. Connecticut states that its program is separate from the FMLA, with separate applications and no job protection of its own, and that employers may allow or require accrued paid time off alongside it as long as total pay does not exceed the regular rate.

Check for each state. New Jersey ties job protection to its own rules. Whether a state’s benefit counts toward the FMLA entitlement depends on the state and the facts, so confirm with counsel or the agency before designating leave.

Worked Scenario

A Company With Employees in Three States

Mapping each employee to a program is the first step.

The facts. A Michigan employer has staff in Michigan, one employee who works from home in Connecticut and one who works from home in New York.

The result. The Connecticut-based employee falls under Connecticut’s program because the work is done there, and the New York-based employee falls under New York’s because the employment is localized there. The Michigan staff are not affected by either.

The takeaway. Keep a list of every employee’s work state and review it whenever someone relocates or goes remote.

What the Rules Connect To

Related Rules and Sources

The programs most likely to touch a Michigan employer with remote staff, and the agency pages behind this guide.

New York Paid Family Leave

Employment localized in New York decides coverage.

Connecticut Paid Leave

Only employees who work in Connecticut participate.

Washington Paid Family and Medical Leave

Localized work and the base-of-operations tiebreaker.

New York Paid Family Leave, eligibility · CT Paid Leave, coverage and eligibility · 29 CFR 825.207, substitution of paid leave

Where We Help

We map your employees to the right programs.

We list where each employee works, which state programs apply, and what your payroll provider needs to withhold and report.

Talk to us about multistate leave

Keep Reading

Related pages.

State Paid Family and Medical Leave Laws

All the state programs in one place.

Maryland Paid Family and Medical Leave

Withholding starts January 2027.

FMLA and Leave Rules

The federal baseline for leave.

Michigan Earned Sick Time Act

The Michigan sick time rules.

New Jersey Family Leave Insurance

Coverage for people who work in New Jersey.

California Paid Family Leave

Eligibility does not depend on residence.

Questions We Get

Questions that come up.

Short answers to the questions we hear most. Each links to the full page.

Which state’s paid leave applies to a remote employee?

Usually the state where the work is done or localized, not the state where the employee lives. Check each state’s agency.

Does paid leave run at the same time as FMLA leave?

Paid leave an employee uses during FMLA leave runs at the same time. State programs are separate laws, so confirm each one.

What if an employee lives in one state and works in another?

The work state’s program generally applies. Connecticut residents who work elsewhere are not covered by Connecticut’s program.

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