Bipartisan paid family and medical leave bills moving through both chambers of the Ohio General Assembly would fundamentally change how merit shop contractors manage workforce planning and payroll. With more than three-quarters of Ohio workers currently lacking access to paid family leave, the political momentum behind this legislation is real—and so are the implications for your bottom line.
Key Takeaways
- Bipartisan bills in the Ohio House and Ohio Senate would create a state-run program offering up to 14 weeks of paid job-protected leave for new parents, medical emergencies, and caring for a family member with a serious health condition.
- More than 75% of Ohio workers lack employer-provided paid leave today, fueling both legislative pressure and workforce expectations in a tight construction labor market facing a 60,000-worker regional deficit.
- The proposal would be funded through payroll contributions (estimated 0.4%-0.8% of wages), administered by the Ohio Department of Job and Family Services, and layered on top of existing federal FMLA obligations.
- For a 100-worker crew averaging $60,000 annually, employer costs could reach $18,000 per year in direct contributions—plus overtime and backfill expenses when employees take leave.
- Engage now through the ABC Action App, the Free Enterprise Alliance, and by attending the ABC Legislative Conference 2026 to shape this legislation before it becomes law.
Background: Why Ohio Paid Family Leave Is Moving Now
The Ohio bill reflects growing bipartisan recognition that the state’s workforce lacks adequate support for family and medical needs. Some public-sector employees may have access to paid parental leave beyond the federal minimums set by the FMLA, but private-sector workers—especially in construction—have largely been left behind. Paid leave can positively impact maternal health and reduce infant mortality rates, arguments that resonate across party lines.
For ABC Ohio Valley members—owners, CFOs, HR leaders, and benefits administrators at commercial and industrial contractors across Southwest and West Central Ohio, Northern Kentucky, and Southeastern Indiana—the 60,000-worker regional construction workforce shortage makes this personal. Benefits like paid leave have become a front-line recruiting tool, and contractors who already provide paid leave report a 15-25% recruiting advantage.
ABC Ohio Valley supports voluntary, market-driven benefits solutions while raising concerns about additional payroll taxes and administrative burdens on Ohio employers.
Overview of the Proposed Ohio Paid Family and Medical Leave Program
Current House and Senate bills, supported by bipartisan sponsors, propose a state-run insurance model offering up to 14 weeks of paid time off at approximately 85% wage replacement, subject to a cap. This expands significantly on the 12 weeks of unpaid leave currently available under federal law.
The program would cover three qualifying categories:
- Bonding with a new child (birth, adoption, or having begun fostering children)
- Caring for a family member with a serious health condition or a new health diagnosis
- The employee’s own serious medical condition is preventing work
Additionally, the program addresses military family leave situations, such as addressing qualifying exigencies or legal and financial arrangements related to a family member’s (including a son’s) active duty or injury. Leave may be taken to care for a service member’s son or to manage issues arising from the service member’s deployment or injury.
Bill details may change through amendments. ABC Ohio Valley is monitoring committee hearings to keep members informed.
Program Structure: Who Funds and Administers Ohio Paid Leave
Proposals for paid leave often include a payroll contribution split between employers and employees, typically in the 0.4%-0.8% range. Contributions would be capped at a wage ceiling similar to Social Security.
The state agency—likely the Ohio Department of Job and Family Services—would:
- Collect premiums through payroll tax filings
- Adjudicate claims directly from employees
- Remit benefits to workers (employers don’t write checks)
Exemptions from employer contributions for paid leave typically apply to businesses with fewer than 15 employees.
Employee Eligibility, Covered Reasons, and Benefit Levels
Not every worker qualifies immediately. Employees are eligible for FMLA leave if they have worked for a covered employer for at least 1 year and 1,250 hours in the previous 12 months. The state program would use wage-based thresholds, potentially covering more workers.
Eligibility for paid leave typically includes parents who are welcoming a new child or caring for a stillborn infant at least 20 weeks into gestation. For a craft worker earning $1,200 per week, an 85% replacement yields approximately $1,020 per week—up to $14,280 over 14 weeks.
Multi-state contractors must track how “Ohio wages” apply to employees working on projects in Ohio, Kentucky, and Indiana.
Employer Obligations and Payroll Cost Impact
While the state pays benefits, employers handle:
- Withholding and remitting payroll contributions
- Posting required notices at offices and jobsites
- Quarterly wage reporting and records retention
- Coordinating with existing PTO policies
For a $5 million annual payroll at 0.3% employer rate, direct costs equal $15,000 annually. Add overtime premiums for backfill (10-20%), and the financial hit compounds quickly. However, workforce benefits associated with paid leave can help businesses attract and retain talent, reduce turnover costs, and create a competitive environment.
Interaction with Federal FMLA
The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons. To qualify for paid family leave under state programs, an employee must work for an employer that has at least 50 employees within a 75-mile radius.
State leave would run concurrently with FMLA where both apply. During Family and Medical Leave Act leave, employers are required to maintain the employee’s health coverage under any group health plan on the same terms as if the employee had continued to work. Upon returning from FMLA leave, most employees must be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms.
Timeline and Probability of Passage
As of April 2026, bills remain in committee with hearings expected through spring. Floor votes could occur by fall 2026, with contributions potentially starting mid-2027 and benefits by 2028-2029. Given bipartisan sponsorship and 75% public support, the probability of passage is moderate to high.
Action Steps for Merit Shop Contractors Right Now
- Inventory current policies and quantify existing paid leave costs
- Meet with payroll providers to confirm system readiness
- Designate an internal point person to track legislation and attend ABC briefings
- Engage in advocacy through the ABC Action App and attend the ABC Legislative Conference 2026
Almost everybody agrees: whether this bill passes or not, the market already expects paid leave. Contractors offering benefits today gain recruiting leverage now.
FAQ: Ohio Paid Family Leave for Construction Employers
Will my Northern Kentucky crews be covered?
Coverage ties to Ohio-sourced wages. Employees performing and taxed in Ohio are covered; work exclusively in Kentucky or Indiana would not be. Code hours by state carefully.
Can I offer my own plan instead?
Many state programs allow approved private plans meeting statutory standards. Ohio’s bill will determine if opt-out options exist. Weigh administrative complexity against participation in the state plan.
How do overlapping workers’ comp claims work?
Paid family leave typically doesn’t duplicate wage replacement from workers’ comp or short-term disability. Benefits may be reduced to prevent double-dipping. Work with your TPA to establish coordination procedures.
How can I stay informed?
Download the ABC Action App for real-time alerts. Designate an internal contact for ABC government affairs updates. Report cost estimates and operational concerns to ABC Ohio Valley staff to strengthen advocacy efforts.
