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State leave law updates for Jan 1, 2026

Cocoon Support avatar
Written by Cocoon Support
Updated over a week ago

Several states are implementing new paid leave programs or making updates to existing ones that come into effect on Jan 1, 2026. Cocoon’s product will support these new laws, and we’ve also compiled some helpful information and FAQs to keep you in the loop. Please note: the list below is not exhaustive.

Washington

What’s changing?

Washington State House Bill 1213 goes into effect on 01/01/2026. This bill makes several changes to Washington Paid Family & Medical Leave (WA PFML) that Cocoon’s product will take into account, including:

  • Changing employee eligibility requirements for job protection under WA PFML

  • Imposing new notice requirements for employers if they want to:

    • exercise a new opportunity to prevent “stacking” of WA PFML job restoration rights on top of FMLA job-protected leave, and/or

    • require employees to affirmatively exercise job restoration rights by returning to work on the first scheduled work day following exhaustion of WA PFML leave

  • Reducing the minimum claim duration from 8 to 4 hours

  • Expanding employee rights to health benefits continuation to any period employees are entitled to WA PFML job protection

What you need to know

As of 1/1, Cocoon will automatically assume you want to prevent employees from stacking WA PFML and FMLA leave time and will update your employee notices accordingly. We take this approach because:

  • Most employers prefer to run job-protection under FMLA and state leave laws concurrently whenever possible

  • Concurrent use of WA PFML & FMLA creates a smoother return-to-work process for employees, reducing the likelihood of confusing experiences where employees have rights to WA PFML wage replacement without a right to job protection

  • It tends to simplify the leave experience by reducing additional documentation cycles, minimizing confusion for employees and managers

While employers do have the right to allow employees to stack the programs, Cocoon will only support concurrent use to give your team the most predictable and straightforward experience. If you have any concerns, please reach out to [email protected].

Delaware

What’s changing?

Delaware Paid Leave comes into effect for employees on January 1, 2026. Cocoon’s product will begin supporting it that same day, however, Cocoon will assume you are not a covered employer for Delaware Paid Leave. This means:

  • You may need to update your “Federal & state coverage” settings (see below).

  • If you update your settings to reflect that your company meets employer coverage requirements, eligible employees taking leave after Jan 1 will see the estimated pay they might receive from DE Paid Leave and claims they need to file

What actions do I need to take in Cocoon?

  • If your company is NOT required to participate in DE Paid Leave: No action needed. Cocoon automatically assumes you are not required.

  • If your company IS required to participate in DE Paid Leave:

    • Navigate to Federal & state Coverage your Cocoon Settings

    • Click the arrow next to Delaware to expand the Delaware section

    • Toggle the appropriate button On depending on whether your company employs either 10-24 employees in Delaware, or 25+ employees (see screenshot below)

How do I know if my company is required to participate in Delaware Paid Leave?

To summarize: employers are exempt from the program if they…

  • Have fewer than 10 employees in Delaware

  • Are federal government employers

  • Have seasonal operations and close to the public for a month or more

Minnesota

What’s changing?

Minnesota Paid Leave starts paying leave benefits on January 1st, 2026 to employees who work in MN and take leave for a qualifying life event. Before this, Minnesota had no state program to help employees with pay during leave. Under the new program, they may be eligible for up to 12 weeks of pay from the state.

What happens for employees who have already planned leaves to start on or after Jan 1, or employees whose leaves started before Jan 1 but don’t end until after Jan 1?

Cocoon proactively emailed these employees to tell them their leave plan might have been updated, and to log in to Cocoon to see any new actions they need to take (e.g. claims to file).

Colorado

Effective Jan 1, 2026, Colorado's FAMLI will now cover Neonatal Care Leave. This will allow parents to take up to 12 additional weeks of paid time off while their newborns are in the NICU.

See Your guide to NICU Leave in Colorado to learn more about how Cocoon supports this new law.

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