New IPLAN Act Aims to Standardize Paid Leave Across States: What It Means for Multi-State Workers

The new Interstate Paid Leave Action Network Act of 2025 (IPLAN Act) is essentially an effort to get state-run paid family and medical leave programs to play nicely together. Right now, if you’ve worked in three different states, each with its own paid leave program, and you need to take time off to care for a new baby or a sick relative, figuring out your eligibility and benefits is a bureaucratic nightmare. This bill aims to fix that by creating a national network where participating states agree to standardize their rules and share data.

The Interstate Paid Leave Network: One-Stop Shopping for Benefits

The core of the IPLAN Act (Section 3) is establishing the Interstate Paid Leave Action Network itself. Think of it as a consortium of states whose main job is to draft an IPLAN Agreement. This agreement will create unified standards for nearly everything: what counts as a ‘benefit week,’ how they calculate your base period for earnings, who qualifies as a ‘family member,’ and how long you have to wait before benefits kick in. For you, the worker, this means if you move from Oregon to Colorado, the rules for applying for paid leave should be much more predictable and less confusing. For employers, especially those with offices or construction sites in multiple states, this standardization is a huge administrative win, cutting down on the need to track dozens of different state regulations.

Finally: Portability for the Mobile Worker

One of the most significant changes is buried in the administrative standardization rules (Section 3). The bill mandates that IPLAN create a single, simple process where a worker who has employment history in several participating states can apply to one state program that will process the claim using all of that combined work history to calculate the benefits. For example, if you’re a traveling nurse or a software consultant who’s spent the last two years working six months each in four different states, you won't have to file four separate claims and try to piece together your eligibility. This is a massive improvement in benefit portability and accessibility.

Follow the Money: Grants and the National Intermediary

To grease the wheels, the bill authorizes grants to states (Section 5). States get Conforming Grants (up to $8 million annually) just for agreeing to participate in the network and designate a ‘State Focal’—a paid leave expert who attends the IPLAN meetings. They get Implementation Grants (also up to $8 million) if they actually sign and implement the IPLAN Agreement. States can use this money for administrative costs, like upgrading technology, or to help small businesses with their payroll contributions related to paid leave.

This whole operation is supported by a National Intermediary (Section 4), a non-governmental group funded by a federal grant (up to $10 million annually). This intermediary is responsible for running the meetings, producing an annual report comparing all state programs, and, most importantly, building the shared technology system that will allow states to securely process those cross-state claims. This tech is the backbone of the entire project, allowing for quick data sharing and ensuring program integrity.

The Fine Print: What About Private Plans?

The bill also addresses private, employer-provided paid leave plans (Section 2). If your company offers its own plan instead of using the state program, that plan must meet or beat the requirements of the state program where you work. This is a crucial protection, ensuring that employers can’t offer a substandard plan just to save money. IPLAN is tasked with creating a standard way to check if an employer’s plan is financially equivalent, comparing things like leave duration, wage replacement rate, and benefit caps all together.

While the goal is coordination, there’s a slight catch in the grant funding (Section 5). The Secretary of Labor can withhold grant money if a state isn't participating in “good faith.” Since “good faith” isn’t strictly defined, it gives the Department of Labor some administrative discretion, which could be a point of friction down the road if a state drags its feet or tries to skirt the agreement. Overall, however, the IPLAN Act is a clear move toward making paid leave less of a confusing patchwork and more of a coherent system for the millions of Americans who move between states for work.