What is Paid Family Leave (PFL)?

Generally, no. Sick pay is usually reserved for short, health-related absences, for example a cold or flu, staying home to care for a child who is normally in school, or recovering from minor outpatient or dental procedures.

However, third-party sick pay differs from "regular" sick pay in that it is paid by somebody other than the employer (usually an insurance company that specializes in this kind of coverage for employers). Because third-party sick pay is almost always used for absences of a longer duration, it generally fits the definition of PFL.

Pay you receive from your employer, an insurer, or the government during the time you are unable to work due to a serious illness or injury is considered PFL income.

For example, if you are still getting paid while away from work for a long period of time due to major surgery, serious injury, chemotherapy, or pregnancy complications, you are receiving PFL pay.

Typically, companies that offer paid medical leave or disability do so through a third party insurer. You may receive a W-2 from that insurer to report the PFL income you received during the time you were out, or you may see the income reported as third-party sick pay on your regular W-2.

If you are getting paid during your leave, yes. Unpaid maternity or parental leave is not PFL.

No. Paid time off work due to the death of an immediate family member does not fit the definition of PFL.

The 1993 Family and Medical Leave Act, or FMLA, entitles eligible employees to take an unpaid, job-protected leave of up to 12 workweeks in a 12-month period for family- and medical-related reasons.

Because FMLA is unpaid, it does not fit the definition of PFL.