Paid family leave mandates have been expanding across the country for a decade.

In sharp contrast, the District of Columbia (D.C.) recently approved its fiscal year (FY) 2027 Budget Support Act (and parallel emergency legislation, the FY 2027 Budget Support Emergency Act),[1] which includes amendments that temporarily reduce benefits available under the D.C. Universal Paid Leave (UPL) program effective October 1, 2026. The change in benefits will likely require employers to review and update their notices and leave of absence policies for D.C.-based employees.

What You Need to Know

  • No Change to Paid Parental and Prenatal Leave: The new law does not affect the amount of paid leave available for parental leave (12 weeks) or prenatal leave (two weeks).
  • Paid Family Leave Cut in Half: The new law will reduce the amount of paid family leave an employee can take, from 12 weeks to six weeks.
  • Paid Medical Leave Slightly Reduced: Paid medical leave for employees will decrease from 12 weeks to 10 weeks.
  • Maximum Weekly Benefit Cap Lowered: The maximum amount of weekly income replacement benefits an employee can receive will be capped at $1,100 (down from $1,190).

First-of-Its-Kind Changes

A growing number of states and cities around the country have passed laws enacting or expanding paid leave programs, but D.C.’s new law bucks that trend. While some states (including Michigan and Missouri) have rolled back sick leave programs, D.C. is the first jurisdiction to significantly reduce benefits available to employees under a paid family and medical leave program.

As we previously reported, D.C.’s UPL program includes four types of leave for which covered employees[2] can receive wage-replacement benefits: parental, family, medical, and prenatal. Since 2022, eligible employees have had up to 12 weeks of leave available to them under the parental, family, and medical leave categories, and two weeks for prenatal leave. Employees have been permitted to take a combined maximum of 12 weeks in a 52-week period, except that parental leave and prenatal leave could be combined for up to 14 weeks of leave in the same period. Employees have also been eligible to receive up to $1,190 per week in income replacement benefits.

For UPL claims filed on or after October 1, 2026, and before October 1, 2030, many of these benefits will be reduced. Parental leave and prenatal leave will remain at 12 weeks and two weeks, respectively, and eligible employees are still able to combine them for up to 14 weeks of leave in a 52-week period. However, eligible employees will receive up to only six weeks of family leave and a maximum of 10 weeks for medical leave.

The maximum duration of family and medical paid-leave benefits within a 52-week period will be restored to 12 weeks for claims filed on or after October 1, 2030, which is the end of D.C.’s four-year budget period.

The FY 2027 Budget Support Act also reduces the maximum weekly income replacement benefits for claims filed on or after October 1, 2026. Under the amended UPL law, the weekly wage replacement benefits for all types of leave will be capped at $1,100. Unlike the duration of benefits, changes to the wage replacement amount will not revert on October 1, 2030; however, D.C. may increase the cap in the future to reflect inflation, provided D.C.’s Chief Financial Officer (CFO) certifies that sufficient funds are available in the UPL Fund to support the adjustment.

D.C. is also now required to conduct annual reviews of the UPL Fund’s financial condition, another change that will support the Fund’s long-term financial health. If an audit reveals that the Fund’s reserves are set to fall below a six-month reserve threshold, D.C.’s CFO must notify the D.C. Council and provide a proposed remediation plan.

Not Changing: Employer Costs to Fund UPL

While D.C. has reduced benefits available to eligible employees, it has not reduced the payroll tax used to fund the program, keeping the employer contribution rate at 0.75 percent of covered employee wages. As before, this tax is wholly borne by employers; employee earnings are not subject to withholdings to cover this expense.

What D.C. Employers Should Do Now

D.C.’s enactment of the parallel FY 2027 Budget Support Emergency Act means the October 1 effective date of these amendments to the UPL program is fast approaching. In the coming weeks, employers should consider taking the following actions:

  • Review and update paid leave policies and procedures for covered employees in D.C. to ensure they reflect these amendments.
  • Update the UPL notice provided to employees to the new notice published by D.C.’s Office of Paid Family Leave, which reflects these changes.
  • Advise and train human resources and payroll personnel so they are aware of the changes, can make any necessary changes to internal procedures, and can direct employees to the updated D.C. Office of Paid Family Leave website for more information.
  • Monitor the permanent FY 2027 Budget Support Act as it completes the required congressional review period, which is currently projected to end on November 20, 2026.

* * * *

For additional information about the issues discussed in this Insight, please contact the attorney(s) listed on this page or the Epstein Becker Green Employment, Labor & Workforce Management attorney who regularly handles your legal matters.

Staff Attorney Elizabeth A. Ledkovsky assisted with the preparation of this Insight.

ENDNOTES

[1] Under D.C.’s Home Rule Act, permanent legislation will only take effect after a congressional review period of 30 legislative session days and publication in the D.C. Register. The FY 2027 Budget Support Act is currently projected to complete the congressional review period on November 20, 2026. For urgent legislation, the D.C. Council frequently passes an identical bill on an “emergency basis,” which requires only the mayor’s approval and is not subject to congressional review. Emergency bills, however, will expire after 90 days unless renewed.

[2] Generally, as we previously explained here, covered employers are nonprofit and for-profit private employers that pay D.C. unemployment insurance taxes for one or more employees, and covered employees are those who spend at least 50 percent of their work time in D.C.

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