Center for American Progress

Self-Employed Workers’ Access to State Paid Leave Programs in 2023
Report

Self-Employed Workers’ Access to State Paid Leave Programs in 2023

This issue brief explains the availability of state paid family and medical leave programs for self-employed workers in the United States.

Part of a Series
In this article
A law student and a self-employed worker use an outdoor coworking space in Boston.
A law student and a self-employed worker use an outdoor coworking space at the Rose Kennedy Greenway in Boston on July 10, 2018. (Getty/The Boston Globe/Suzanne Kreiter)

To date, 13 states and Washington, D.C., have passed paid family and medical leave laws, including two new additions this year.1 These laws provide covered workers with wage replacement benefits when they need time away from work to address their own serious health need, care for a seriously ill or injured loved one, or bond with a new child.

Most, but not all, of these state laws include the opportunity for self-employed workers—including freelancers, independent contractors, and sole proprietors—to access coverage. Access to these benefits is important for self-employed people who experience the same health and family needs as all workers but almost always lack access to any form of paid leave unless they have access to an insurance system.

This issue brief explains the status of coverage for self-employed workers under state paid leave programs. Future pieces in this series will explore in more detail why these workers need paid leave and the benefits it provides.

The availability of paid leave in the states

For employees, coverage under state paid leave laws is generally automatic: Employees have a legal right to the coverage, and they, and/or their employers, are legally required to contribute. In contrast, no existing state paid leave program automatically covers self-employed workers.2 Where states have extended the opportunity for paid leave coverage to self-employed workers, they have done so on a voluntary, opt-in basis.3

Twelve of the 14 existing state paid leave programs allow—or will allow, when they are up and running—self-employed people to voluntarily opt in to coverage: California,4 New York,5 Washington state,6 Massachusetts,7 Connecticut,8 Oregon,9 Colorado,10 Maryland,11 Delaware,12 Minnesota,13 Maine,14 and Washington, D.C.15 Nationwide, about a quarter, or 24.7 percent, of nonemployer small businesses are located in states that currently pay paid leave benefits and allow self-employed people to opt in; when all currently passed paid leave programs are fully implemented, that number will rise to about 32 percent.16

Opting in to a state paid leave program typically means submitting an application or notice to a state agency or enrolling through an online portal, providing documentation, and then complying with the state’s rules.17 When self-employed people opt in to a state paid leave program, they must pay contributions into that program’s insurance system. In exchange, subject to state-specific eligibility rules, self-employed people become eligible for cash benefits when they are unable to work as a result of covered health or caregiving needs, set as a percentage of their self-employment income. More information is provided in the following subsections.

Benefits

State paid leave programs provide cash benefits, out of an insurance fund, to those who cannot work due to serious health or family needs.18 Typically, covered needs at least include addressing one’s own serious health needs, caring for a loved one’s serious health needs, or bonding with a new child; some programs also cover needs in relation to military deployment or sexual or domestic violence.19 If self-employed people opt in and meet the eligibility requirements, they can apply for and receive cash benefits to cover their lost income when they cannot work for a covered reason.

Benefits are set as a percentage of self-employment income, up to a weekly cap. This can be either a flat rate, where all workers receive the same percentage of their income, or a progressive rate based on income.20 Typically, programs that have progressive rates replace a higher percentage, most commonly 90 percent, of the portion of workers’ income below a certain amount and replace income above that amount at a lower percentage, most commonly 50 percent.21 This creates a sliding scale, where lower-income workers—including lower-income self-employed workers who opt in to coverage—receive a higher percentage of their own income.

Benefits are available for a period of weeks, with 12 weeks being one common maximum time limit per need. The exact available duration varies by state and may vary by purpose.22 If appropriate, self-employed workers may be able to take benefits on an intermittent basis, rather than as a single unit, to cover recurring absences, such as those due to medical appointments.23

Costs

State costs to opt in to coverage vary widely. Contributions are typically set as a percentage of a self-employed person’s income, adjusted annually. Rates vary by state: On the low end, contribution in Washington, D.C., is currently 0.26 percent of income,24 and on the high end, opting in to coverage in California typically costs an astronomical 6.9 percent of income.25 All other programs are below 1 percent, with most between 0.45 percent and 0.65 percent. (see Table 1) In every program except Washington, D.C.’s, contributions are capped, usually by only applying the contribution to income up to a certain amount, most commonly at or about the maximum amount subject to taxation for Social Security26—which is currently $160,200.27

In five state programs, self-employed people pay the same amount as employees with the same income. This can mean either that costs are split between employees and employers but self-employed people pay only the employee share—as in Colorado, Oregon, Washington, and Maine28—or that only employees contribute, and self-employed people pay the same amount as employees, as is the case in Connecticut.29

In at least six other programs,30 self-employed workers must pay a higher share of income than employees. In four states, employers and employees both contribute,31 but self-employed workers must pay both the employer and employee shares, potentially resulting in much higher rates than employees pay.32 In Washington, D.C., employees do not contribute to the cost of the program, but self-employed people who opt in pay the full employer contribution.33

Eligibility and waiting periods

For employees, eligibility is typically dependent on meeting a minimum amount of covered earnings or time worked over a fixed period of time prior to the use of leave.34 For the self-employed, except in Colorado,35 eligibility for benefits is typically tied to requirements that workers must meet following opting in to the program. These could include a minimum time that must pass following opting in; a minimum period of time or minimum dollar amount for which the worker must pay into the system; or both.36 In Washington, D.C., and New York, workers who fail to opt in within a certain period of time following becoming self-employed face a longer waiting period—one year in Washington, D.C., and two years in New York.37 In order to opt in, most programs require self-employed people to commit to staying in the program for a certain period of time, typically three years.38

How many self-employed people have opted in?

The number of self-employed people who opt in has remained shockingly low across all programs that offer the option. The six fully implemented programs that allow people to opt in report that for the most recent available time period, an approximate 120,828 total self-employed people opted in out of 6.7 million nonemployer small businesses in those states—an opt-in rate of about 1.80 percent. While opt-in rates vary, even Massachusetts, with the highest opt-in rate, has numbers equivalent to only 7.39 percent of total nonemployer small businesses; rates in the other fully implemented states are much lower. (See Table 2)

Why usage remains so low merits further research and examination. One likely driver of low usage is low awareness: Workers cannot use a program they do not know exists. Low awareness is an ongoing challenge for paid leave programs generally for both employees and self-employed workers, requiring continual outreach and educational investments. Because of the opt-in system, the stakes are even higher for self-employed workers, as they must deliberately enroll in the program, typically for some period of time prior to using it. However, many self-employed workers do not seek out information about paid leave until they have an urgent need for it, at which point it may be too late. More research is needed to identify best practices in education and outreach to engage self-employed workers as well as implement these practices in all states.

Even where workers are aware of programs, however, other barriers may exist. In California, for example, the cost of opting in puts coverage out of reach for many self-employed people. In 2023, covered employees must pay in at a rate of 0.9 percent of their income up to a maximum contribution of $1,378.48 per year, based on maximum income subject to the contribution of $154,164 per year.39 California’s program is fully employee funded, with no employer contribution, so this contribution represents the full amount being paid into the fund on behalf of employees. However, someone who opts in to the program for self-employed workers must typically pay 6.93 percent of their net profit on their first $154,164 in income—nearly eight times the rate of an employee making the same amount.40 However, in exchange, self-employed people are eligible for fewer weeks of benefits—a maximum of 39 weeks compared with 52 weeks for employees.41As a result, self-employed people must pay much more for less.

In New York, self-employed workers face a different challenge. Those who wish to opt in to the state’s paid family leave program must do so within 26 weeks of becoming self-employed. If they do not, they face a mandatory two-year waiting period after electing paid family leave coverage before they can access the benefits—in other words, they must pay premiums for a full two years before becoming eligible for these benefits.42 This deadline is not widely known, and many self-employed people inadvertently miss their window to opt in without triggering the waiting period.43 As noted above, other programs have waiting periods after workers opt in but before they qualify for benefits, but none are close in length to New York’s two-year period.

More work remains to ensure that opportunities to opt in to state paid leave programs are well understood and designed in a way that meets the needs of the self-employed workforce. In addition, the two state paid leave programs that do not currently allow self-employed workers to opt in to coverage—New Jersey and Rhode Island—should be amended to add this option.

Endnotes

  1. These states are California, New Jersey, Rhode Island, New York, Washington, Massachusetts, Connecticut, Oregon, Colorado, Maryland, Delaware, Minnesota, and Maine. Molly Weston Williamson, “The State of Paid Family and Medical Leave in the U.S. in 2023” (Washington: Center for American Progress, 2023), available at https://www.americanprogress.org/article/the-state-of-paid-family-and-medical-leave-in-the-u-s-in-2023/; Molly Weston Williamson, “Fast Facts About Minnesota’s New Paid Leave Law,” Center for American Progress, May 19, 2023, available at https://www.americanprogress.org/article/fast-facts-about-minnesotas-new-paid-leave-law/; Molly Weston Williamson, “Fast Facts About Paid Leave in Maine,” Center for American Progress, July 11, 2023, available at https://www.americanprogress.org/article/fast-facts-about-paid-leave-in-maine/.
  2. The one exception is the covered business entity provision in Massachusetts’ law. However, in practice, this provision likely does not cover any workers. This topic will be addressed in greater detail in a future article.
  3. Molly Weston Williamson, Sherry Leiwant, and Julie Kashen, “Constructing 21st Century Rights for a Changing Workforce: A Policy Brief Series” (New York: A Better Balance, 2019), pp. 7–8, available at https://www.abetterbalance.org/wp-content/uploads/2020/12/ABB_Policy-Brief1-pdf.pdf.
  4. Cal. Unemp. Ins. Code § 708.5, available at https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=UIC&sectionNum=708.5 (last accessed August 2023); Employment Development Department, “Disability Insurance Elective Coverage (DIEC),” available at https://edd.ca.gov/en/payroll_taxes/Disability_Insurance_Elective_Coverage/ (last accessed June 2023).
  5. NY Work. Comp. Law § 212(4)(b), available at https://www.nysenate.gov/legislation/laws/WKC/212 (last accessed August 2023); New York State, “Self-Employed Individuals,” available at https://paidfamilyleave.ny.gov/self-employed-individuals (last accessed June 2023).
  6. Was. Rev. Code § 50A.10.010, available at https://app.leg.wa.gov/RCW/default.aspx?cite=50A.10.010 (last accessed August 2023); Washington Paid Family and Medical Leave, “Self-employed: Electing Coverage,” available at https://paidleave.wa.gov/elective-coverage/ (last accessed June 2023).
  7. Mass. Gen. Laws, title 22, Chapter 175M, § 2(j), available at https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175M/Section2 (last accessed August 2023); Commonwealth of Massachusetts, “Paid Family and Medical Leave coverage for self-employed individuals,” available at https://www.mass.gov/info-details/paid-family-and-medical-leave-coverage-for-self-employed-individuals (last accessed June 2023).
  8. Conn. Gen. Stat. § 31-49m, available at https://www.cga.ct.gov/current/pub/chap_557.htm – sec_31-49m (last accessed August 2023); Connecticut Paid Leave, “I’m a Sole Proprietor or Self-Employed,” available at https://ctpaidleave.org/s/sole-proprietor-and-self-employed?language=en_US (last accessed June 2023).
  9. Or. Rev. Stat. § 657B.130, available at https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html (last accessed August 2023); Paid Leave Oregon, “You can choose coverage,” available at https://paidleave.oregon.gov/self-employed/overview.html (last accessed June 2023).
  10. Col. Rev. Stat. § 8-13.3-514, available at https://casetext.com/statute/colorado-revised-statutes/title-8-labor-and-industry/labor-i-department-of-labor-and-employment/labor-conditions/article-133-family-and-medical-leave/part-5-paid-family-and-medical-leave-insurance/section-8-133-514-elective-coverage (last accessed August 2023); Colorado Family and Medical Leave Insurance Program, “Can self-employed workers get paid family leave? Yes! Here’s how.”, January 13, 2023, available at https://famli.colorado.gov/news-article/can-self-employed-workers-get-paid-family-leave-yes-heres-how.
  11. Md. Code, Lab. & Empl., § 8.3-201, available at https://casetext.com/statute/code-of-maryland/article-labor-and-employment/title-83-family-and-medical-leave-insurance-program/subtitle-2-scope-of-title/section-83-201 (last accessed August 2023).
  12. Del. Code, tit. 19, § 3717, available at https://delcode.delaware.gov/title19/c037/index.html#3717 (last accessed August 2023). The statue refers to small businesses, rather than specifically to the self-employed. However, it is the intent of the agency to allow the self-employed to opt in under this provision. Further clarification will be needed.
  13. Chapter 59, H.F. 2, Section 268B.11, 93rd Minnesota Legislature, regular sess. (May 25, 2023), available at https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/.
  14. Chapter 412, Subchapter 6-C, Section 850-G, 131st Maine Legislature, 1st special sess. (July 11, 2023), available at http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0163&item=14&snum=131.
  15. D.C. Code § 32-541.05, available at https://code.dccouncil.gov/us/dc/council/code/sections/32-541.05 (last accessed August 2023); DC Paid Family Leave, “Self-Employed Individuals,” available at https://dcpaidfamilyleave.dc.gov/self-employed/ (last accessed June 2023).
  16. Author’s calculations based on U.S. Small Business Administration, “Small Business Profiles for the States, Territories, and Nation 2022” (Washington: 2022), available at https://advocacy.sba.gov/wp-content/uploads/2022/08/State_Profiles_2022.pdf.
  17. Commonwealth of Massachusetts, “Opt in and contribute to PFML as a self-employed individual,” available at https://www.mass.gov/info-details/opt-in-and-contribute-to-paid-family-and-medical-leave-as-a-self-employed-individual (last accessed July 2023); DC Paid Family Leave, “Self-Employed Individuals”; Washington Paid Family and Medical Leave, “Self-employed: Electing Coverage,” available at https://paidleave.wa.gov/elective-coverage/ (last accessed June 2023).
  18. Williamson, “The State of Paid Family and Medical Leave in the U.S. in 2023.”
  19. Ibid.
  20. Ibid.
  21. A Better Balance, “Comparative Chart of Paid Family and Medical Leave Laws in the United States,” December 1, 2021, available at https://www.abetterbalance.org/resources/paid-family-leave-laws-chart/.
  22. Ibid.
  23. National Partnership for Women and Families, “State Paid Family & Medical Leave Insurance Laws” (Washington: 2022), p. 9, available at https://nationalpartnership.org/wp-content/uploads/2023/02/state-paid-family-leave-laws.pdf.
  24. DC Paid Family Leave, “Update to the Paid Family Leave Tax Rate,” available at https://dcpaidfamilyleave.dc.gov/wp-content/uploads/2022/06/PFL-Tax-Rate-Update-1-2.pdf (last accessed June 2023).
  25. Employment Development Department, “Benefits and Premium Amounts – Disability Insurance Elective Coverage,” available at https://edd.ca.gov/en/Disability/Self-Employed_Benefit_Amounts (last accessed June 2023). For purposes of this program, California effectively defines income for the self-employed as net profit. Those whose net profit is lower than $4,600 pay a flat rate of $318.78, which is a higher effective rate than the standard 6.9 percent.
  26. The cap on contributions is explicitly tied to the Social Security contribution base in Connecticut, Colorado, Massachusetts, Maine, Maryland, Minnesota, and Washington state. Conn. Gen. Stat. § 31-49g(b)(1), available at https://www.cga.ct.gov/current/pub/chap_557.htm (last accessed August 2023); Col. Rev. Stat. § 8-13.3-507(6), available at https://casetext.com/statute/colorado-revised-statutes/title-8-labor-and-industry/labor-i-department-of-labor-and-employment/labor-conditions/article-133-family-and-medical-leave/part-5-paid-family-and-medical-leave-insurance/section-8-133-507-pre (last accessed August 2023); Me. Stat., tit. 26, § 850-F(6), available at http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0163&item=14&snum=131 (last accessed August 2023); Md. Code, Lab. & Empl., § 8.3-601(a)(2)(II), available at https://casetext.com/statute/code-of-maryland/article-labor-and-employment/title-83-family-and-medical-leave-insurance-program/subtitle-6-contributions/section-83-601-contributions (last accessed August 2023); Mass. Gen. Laws tit. 22, ch. 175M, section 6(f), available at https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175M/Section6 (last accessed August 2023); Minn. Stat. § 268B.11(3), available at https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/ (last accessed August 2023); Was. Rev. Code § 50A.10.030(4), available at https://app.leg.wa.gov/RCW/default.aspx?cite=50A.10.030 (last accessed August 2023). In Oregon, the cap on contributions is set at $132,900, which was the Social Security contribution base in 2019, when the statute was passed; this amount will be annually adjusted in subsequent years based on regional inflation. Or. Rev. Stat. 657B.150(1)(c), available at https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html (last accessed August 2023); Or. Rev. Stat. § 657B.150(9), available at https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html (last accessed August 2023); Or. Admin. R. 471-070-2030(1), available at https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=6880 (last accessed August 2023); Social Security Administration, “Contributions and Benefit Base,” available at https://www.ssa.gov/oact/cola/cbb.html (last accessed June 2023). In California, the limit is currently $153,164 of net income. Employment Development Department, “Benefits and Premium Amounts – Disability Insurance Elective Coverage.” In New York, paid family leave contributions are capped at $87,785.88 of annual income, while disability insurance premiums are not capped. New York State, “Cost and Deductions,” available at https://paidfamilyleave.ny.gov/cost (last accessed June 2023).
  27. Social Security Administration, “Contributions and Benefit Base.”
  28. For sources showing that both employers and employees pay into the programs, see Was. Rev. Code § 50A.10.030(3), available at https://app.leg.wa.gov/RCW/default.aspx?cite=50A.10.030 (last accessed August 2023); Or. Rev. Stat. § 657B.150(2)(b), available at https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html (last accessed August 2023); Col. Rev. Stat. § 8-13.3-507(5), available at https://casetext.com/statute/colorado-revised-statutes/title-8-labor-and-industry/labor-i-department-of-labor-and-employment/labor-conditions/article-133-family-and-medical-leave/part-5-paid-family-and-medical-leave-insurance/section-8-133-507-premiums (last accessed August 2023); Me. Stat., tit. 26, § 850-F(5), available at http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0163&item=14&snum=131 (last accessed August 2023). For sources showing that self-employed workers pay only the employee share in Colorado, Washington, and Maine, see Col. Rev. Stat. § 8-13.3-507(4)(a), available at https://casetext.com/statute/colorado-revised-statutes/title-8-labor-and-industry/labor-i-department-of-labor-and-employment/labor-conditions/article-133-family-and-medical-leave/part-5-paid-family-and-medical-leave-insurance/section-8-133-507-premiums (last accessed August 2023); Was. Rev. Code § 50A.10.010(1); Me. Stat., tit. 26, § 850-F(5). In Oregon, technically, the statute leaves it to the director’s discretion to set the rate for self-employed people, but the director set the self-employed contribution rate at 60 percent of the total rate, which is exactly equal to what employees pay. Or. Rev. Stat. § 657B.150(6), available at https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html (last accessed August 2023); Or. Admin. R. 471-070-2030(1), available at https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=6880 (last accessed August 2023). At present, the total rate is 1 percent, so the self-employed contribution rate is 0.6 percent (60 percent of 1 percent). Notably, in all four of these states, smaller employers are exempted from paying the employer share of contributions, so self-employed people are, in effect, treated as if they are the employees of small employers. Or. Rev. Stat. § 657B.150(4)(a), https://www.oregonlegislature.gov/bills_laws/ors/ors657B.html; Was. Rev. Code § 50A.10.030(5)(a), available at https://app.leg.wa.gov/RCW/default.aspx?cite=50A.10.030 (last accessed August 2023); Col. Rev. Stat. § 8-13.3-507(5); Me. Stat., tit. 26, § 850-F(5), available at http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0163&item=14&snum=131 (last accessed August 2023).
  29. Conn. Gen. Stat. § 31-49g(b)(1), available at https://www.cga.ct.gov/current/pub/chap_557.htm (last accessed August 2023).
  30. Final regulations are needed to determine the share to be paid by self-employed people who opt in to coverage in Delaware.
  31. MA Gen Laws, title 21, Ch. 175M, section 6(c), available at https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175M/Section6 (last accessed August 2023); Md. Labor and Employment Code Ann. § 8.3-601(e), available at https://casetext.com/statute/code-of-maryland/article-labor-and-employment/title-83-family-and-medical-leave-insurance-program/subtitle-6-contributions/section-83-601-contributions (last accessed August 2023); Minnesota Statute § 268B.14(3), available at https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/ (last accessed August 2023).
  32. Ironically, in all three states, smaller employers pay either no or a reduced employer contribution, meaning that self-employed workers pay more than they would if they were the sole employee of a business. Ibid. In New York, employees cover the full cost of paid family leave coverage and self-employed workers pay the same amount; however, employers and employees, at least on paper, split the cost of temporary disability coverage for workers’ own serious health needs, but self-employed people must cover the full cost of coverage. NY Workers’ Comp. Law § 209(3), available at https://www.nysenate.gov/legislation/laws/WKC/209 (last accessed August 2023).
  33. D.C. Code § 32-541.03(b), available at https://code.dccouncil.gov/us/dc/council/code/sections/32-541.03 (last accessed August 2023).
  34. Williamson, “The State of Paid Family and Medical Leave in the U.S. in 2023.”
  35. In Colorado, a self-employed person who opts in will be immediately eligible without needing to satisfy any other requirements through the definition of “covered individual.” Colorado Family and Medical Leave Insurance Program, “Individuals and Families,” available at https://famli.colorado.gov/individuals-and-families (last accessed June 2023). Col. Rev. Stat. § 8-13.3-503(3)(a), available at https://casetext.com/statute/colorado-revised-statutes/title-8-labor-and-industry/labor-i-department-of-labor-and-employment/labor-conditions/article-133-family-and-medical-leave/part-5-paid-family-and-medical-leave-insurance/section-8-133-503-definitions (last accessed August 2023).
  36. In California, self-employed workers need to have paid in for at least four months. Employment Development Department, “Fact Sheet: Disability Insurance Elective Coverage Program,” available at https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de8714cc.pdf (last accessed June 2023). In D.C, self-employed workers need to have earned and reported their self-employed income for at least one quarter of the past five completed calendar quarters. 7 DCMR § 3500.1(c)(2)(B), available at https://dcpaidfamilyleave.dc.gov/downloads/regulations/ (last accessed August 2023). In Massachusetts, self-employed workers need to have made at least two calendar quarters of contributions and must have earned self-employment income equivalent to the monetary eligibility rule for employees. Mass. Gen. Laws tit. 22, ch. 175M, §1, available at https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175M/Section1 (last accessed August 2023); 458 CMR 2.06(3), available at https://casetext.com/regulation/code-of-massachusetts-regulations/department-458-cmr-department-of-family-and-medical-leave/title-458-cmr-200-family-and-medical-leave/section-206-optional-coverage-for-self-employed-individuals-or-employers-not-subject-to-mgl-c-175m (last accessed August 2023). In Minnesota, self-employed workers will be eligible for benefits on the first day of the first calendar quarter after opting in. Minn. Stat. § 268B.11(1)(a), available at https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/ (last accessed August 2023). In New York, self-employed workers are eligible for paid family leave benefits 26 weeks after electing coverage, except as described in this issue brief. New York State, “Self-Employed Individuals.” In Oregon, self-employed workers will need to have earned at least $1,000 in taxable self-employment income to qualify for benefits; in addition, they will need to have been paying in for at least one quarter for reduced benefits and for at least one year for full benefits. Or. Admin. R. 471-070-2005(1), available at https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=6880 (last accessed August 2023); Paid Leave Oregon, “Self-employed Coverage,” available at https://d1o0i0v5q5lp8h.cloudfront.net/paidleave/live/assets/resources/Paidleave-selfemployed-EN.pdf (last accessed June 2023). In Connecticut, self-employed workers are eligible for benefits after three calendar months have passed since enrollment. CTPL-010-SPSE(d), available at https://ctpaidleave.my.salesforce.com/sfc/p/#t00000004XRe/a/t0000002DJl5/X5ZDcmO_gmXCBjZ5akpGgbDLiYD9cZk.bKLJ_K5BOrI (last accessed August 2023). Because Washington state, unusually, sets eligibility for employees based on hours worked, rather than earnings, the eligibility standard for the self-employed uses an earnings test to approximate the same amount of hours worked following the person opting in. Wash. Admin. Code § 192-510-030, available at https://apps.leg.wa.gov/wac/default.aspx?cite=192-510-030 (last accessed August 2023). Maryland will use a similar eligibility requirement for the self-employed, but regulations will be needed to clarify how the self-employed will qualify for paid leave following election. Md. Code, Lab. & Empl., § 8.3-201(c), available at https://casetext.com/statute/code-of-maryland/article-labor-and-employment/title-83-family-and-medical-leave-insurance-program/subtitle-2-scope-of-title/section-83-201 (last accessed August 2023). In Maine, self-employed workers do not need to meet the earnings requirement that applies to employees, but regulations will be needed to clarify when the self-employed qualify for paid leave following election. Me. Stat., tit. 26, § 850-A(9), available at http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0163&item=14&snum=131 (last accessed August 2023).
  37. In Washington, D.C., workers must opt in during the first open enrollment window for which they are eligible, typically meaning within 60 days of becoming self-employed, to avoid this longer waiting period. 7 DCMR 3402.5, available at https://dcpaidfamilyleave.dc.gov/downloads/regulations/ (last accessed August 2023); DC Paid Family Leave, “Self-Employed Individuals.” In New York, workers must opt in within 26 weeks of becoming self-employed to avoid the longer waiting period. 11 CRR-NY 363.6(j), available at https://govt.westlaw.com/nycrr/Document/I59cac1c8527911e78de8feddd4b9ac3d?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1 (last accessed August 2023).
  38. Mass. Gen Laws. tit. 21, ch. 175M, § 2(j), available at https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175M/Section2 (last accessed August 2023); Was. Rev. Code § 50A.10.010(1); Md. Code, Lab. & Empl. § 8.3-201(c)(1), available at https://casetext.com/statute/code-of-maryland/article-labor-and-employment/title-83-family-and-medical-leave-insurance-program/subtitle-2-scope-of-title/section-83-201 (last accessed August 2023); Or. Rev. Stat. § 657B.150(6); Col. Rev. Stat. § 8-13.3-514(1); Conn. Stat. § 31-49m, available at https://www.cga.ct.gov/current/pub/chap_557.htm (last accessed August 2023). In Minnesota, the commitment will be two years, or 104 consecutive calendar weeks. Minn. Stat. § 268B.11(1)(a), available at https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/59/ (last accessed August 2023). In Washington, D.C., the three-year minimum commitment applies only to those who did not opt in during the first open enrollment period for which they were eligible. D.C. Code § 32-541.05(a)(2),” available at https://code.dccouncil.gov/us/dc/council/code/sections/32-541.05 (last accessed August 2023); 7 DCMR § 3402.7, https://dcpaidfamilyleave.dc.gov/downloads/regulations/ (last accessed August 2023).
  39. Employment Development Department, “2023 Contribution Rates, Withholding Schedules, and Meals and Lodging Values,” available at https://edd.ca.gov/en/Payroll_Taxes/Rates_and_Withholding#:~:text=SDI%20Rate,for%20each%20employee%20is%20%241%2C378.48 (last accessed June 2023).
  40. Employment Development Department, “Benefits and Premium Amounts – Disability Insurance Elective Coverage.” available at https://edd.ca.gov/en/Disability/Self-Employed_Benefit_Amounts (last accessed June 2023). Those whose net profit is less than $4,600 pay a flat rate of $318.78, which is a higher effective rate than the standard 6.93 percent.
  41. Cal. Unemp. Ins. Code § 708.5(i) limits DIEC benefits for the self-employed to 39 times the workers’ weekly benefit amount. In contrast, for employees, disability benefits can be paid as much as 52 times the workers’ weekly benefit amount.
  42. 11 CRR-NY 363.6(j)).
  43. Meghan Racklin and Molly Weston Williamson, “The Time Is Now: Building the Paid Family and Medical Leave New Yorkers Need,” A Better Balance, February 23, 2023, available at https://www.abetterbalance.org/the-time-is-now/.

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Women’s Initiative

The Women’s Initiative develops robust, progressive policies and solutions to ensure all women can participate in the economy and live healthy, productive lives.

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Photo shows a mother wearing a mask with her 1-year-old daughter on her lap. A nurse in dark-blue scrubs gives the child a vaccine in her leg

Millions of Americans are self-employed, whether they call themselves freelancers, independent contractors, entrepreneurs, or small-business owners. When a serious health need strikes or a new child arrives, the self-employed need time away from work just as employees do but all too often cannot afford to take it—unless there’s a paid leave program to protect them. This series explores who the self-employed are, what paid leave means for them, and the state of play in federal and state policy on paid leave for this population.

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