As summer winds down, the Disability Management Employer Coalition (DMEC) hosted its 2025 Annual Conference in vibrant Austin, TX, a city known for its live music, bold flavors, and innovative spirit. The dynamic setting was the perfect backdrop for this year’s conversations around the ever-evolving world of absence, accommodations, compliance, and employee wellness. Professionals from across the industry gathered to unpack new legislation, discuss workplace trends, and explore tech-driven solutions to modern challenges. Here are three key themes that emerged from this year’s conference:

1) Championing Wellbeing

Mental health has been a conference staple in recent years, but 2025 brought a more integrated, human-centered approach. Discussions extended beyond mental illness to resilience, emotional intelligence, caregiving, and holistic employee support strategies. The rise of neurodiversity, trauma-informed leadership, and care-inclusive policies showcased how employers are adapting to meet a broader spectrum of employee needs.

– In the session, “Compassionate Leave: Reimagining Employee Well-Being,” presenters explored how companies are expanding leave programs to support emotional well-being, not just physical health.

– A dynamic discussion titled “Neurodiversity in the Workplace: Employee Expectations and Employer Obligations” highlighted how organizations can create inclusive environments and meet accommodation needs for neurodiverse employees.

– In “Empowering Caregivers in the Workplace: A Collaborative Approach to Well-Being,” panelists shared strategies to support the growing population of working caregivers through benefits design and workplace flexibility.

2) Technology & AI

This year’s sessions made one thing clear: we’re at a true inflection point when it comes to technology. With AI, data integration, and digital tools maturing, organizations are rethinking how leave is managed, from predictive analytics to employee experience platforms. Several thought leaders challenged the industry to balance automation with empathy, and to ensure tech doesn’t come at the cost of compliance or care.

3) Compliance & Accommodation Strategies

Compliance remains a foundational topic, and this year brought a new level of pragmatic guidance and real-world scenarios. Sessions ranged from ADA accommodations and “good faith” practices to FMLA audits and courtroom insights. The clear takeaway? Employers must remain agile and informed while developing repeatable, scalable compliance frameworks.

– The Preconference Workshop, “Taking Back Your Plan: A Practical Guide for Effective Policy Development,” run by Spring Consulting Group, helped employers navigate federal, state, and local leave laws as they build or update internal policies. We also explored benchmarking strategies and outlined the changes employers need to get their benefit programs back on track.

– In “Recent Jury Verdicts Involving Leave and Accommodation Issues,” a legal expert reviewed real court outcomes to help employers better understand risk and strengthen their policies.

– A panel-led session, “Getting Alice out of Wonderland: How to Address the Realities of Accommodations Management,” shared tactical guidance on how to navigate tricky and often ambiguous accommodation requests.

Final Thoughts

The DMEC 2024 Annual Conference in Nashville was a resounding success, filled with opportunities to learn, connect, and share best practices. From deep dives into compliance and mental health to exploring the latest technological innovations, the conference offered something for everyone. As always, it was a pleasure to reconnect with industry leaders and bring back fresh ideas to enhance our consultative offerings. We’re already looking forward to what next year’s conference will bring!

Title:

AVP – Absence and Disability

Joined Spring:

I joined Spring in January 2024

Hometown:

Chesterfield, MA (near Northampton)

At Work Responsibilities:

I help employers navigate complex absence and disability laws and develop customized absence and disability programs that are both compliant and strategically aligned with their goals. Simultaneously, I support absence and disability vendors in developing and launching new products, from drafting policy forms to creating marketing collateral.

Outside of Work Hobbies/Interests:

Cycling, pickleball, gardening

Fun Fact:

In high school, my summer softball team made it to nationals 2 years in a row. I was an academic all-American squash player in college.

Do You Have Any Children?

Two amazing adult humans, ages 28 and 25 – and 3 equally awesome grandchildren with a 4th arriving at the beginning of 2026!

Favorite Band/Musician:

I have loved Melissa Etheridge since I played frisbee with her and her band on the lawn of my dorm at Smith College in 1990 and she signed my cassette of her first album! I have seen her in concert at least 20 times.

Favorite Book:

A Gentleman in Moscow

Spring Consulting Group is contracted with the State of Maine to conduct actuarial studies of the Maine Paid Family & Medical Leave (PFML) trust fund. You can read the full press release here.

As spring unfolded, the 2025 Disability Management Employer Coalition (DMEC) Compliance Conference brought together absence management professionals from across the nation to explore emerging trends, compliance strategies, and innovative solutions in the world of leave management. Held in Columbus, Ohio, this year’s conference offered in-depth sessions on pressing issues, including compliance, mental health accommodations, technological advancements, and diversity in the workplace. Here’s a look at some of the key topics that were discussed:

1) Navigating Complex Compliance Challenges

With the ever-changing landscape of leave and accommodation laws, staying compliant remains a top priority for employers. This year’s conference offered valuable insights into managing the intersection of federal and state regulations. Experts shared practical advice on how to avoid common mistakes and streamline compliance efforts across diverse workforces. Here are some noteworthy sessions:

This session offered a deep dive into upcoming changes to the Department of Labor’s regulations and what HR teams need to do to stay ahead of the curve.

Speakers unpacked the complexities of these intersecting laws and shared strategies for managing situations where they overlap.

Our team was joined by a regulator, attorney, carrier, and employer to outline the different use cases and provide audience members with a framework for making a decision about whether they should file a private plan or stay with the state.

2) Mental Health Support

Mental health remains a cornerstone of today’s workplace benefits, and the conference didn’t shy away from tackling this critical issue. Sessions focused on creating a supportive environment for employees experiencing mental health challenges. These discussions provided actionable strategies for maintaining compliance while prioritizing employee well-being:

Experts explored best practices for managing mental health claims, with a focus on the unique complexities of psychological disabilities in the workplace.

This session helped employers navigate the delicate balance of offering accommodations while staying compliant with ADA and FMLA guidelines.

A deep dive into how mental health conditions are handled under Long-Term Disability (LTD) policies and the ongoing challenge of achieving true mental health parity in benefits.

3) Innovations in Leave and Accommodation Management

Technology continues to transform the way employers manage leave and disability claims. This year’s conference highlighted cutting-edge tools and strategies, including the use of artificial intelligence (AI) to streamline compliance processes, as well as other technologies to support for disability management. These sessions explored how employers can leverage technology and data-driven insights to improve leave management and drive better outcomes:

This session explored how AI is reshaping leave management, helping employers automate compliance and improve accuracy in decision-making.

One of the most forward-thinking sessions, this presentation discussed the growing role of psychedelic-assisted therapies in managing mental health conditions in the workplace.

Participants learned about five new tools designed to optimize Return-to-Work (RTW) and Stay-at-Work (SAW) programs, improving the experience for both employers and employees.

The 2025 DMEC Compliance Conference provided a comprehensive overview of the challenges and opportunities facing HR and absence management professionals today. From navigating complex compliance requirements to embracing new technologies and supporting employee mental health, the conference highlighted the evolving nature of leave and accommodation management. With valuable insights and actionable strategies, attendees left the conference better equipped to address the needs of their diverse workforces while staying compliant with an ever-changing legal landscape. We’re already looking forward to what next year’s conference will bring!

There was a flurry of activity at the federal level that involved state and local paid family and medical leave (PFML) programs in the days leading up to President Trump’s inauguration. Both the Department of Labor (DOL) and the Internal Revenue Service (IRS) provided additional guidance and clarification, which is summarized in this Alert.

I. DOL Opinion Letter Clarifies Interaction of FMLA and State of Local PFML Programs

As the paid leave landscape has evolved, employers have struggled with how to reconcile compliance with the Family and Medical Leave Act (FMLA) with that of state or local paid family and medical leave (PFML) programs. While running FMLA, PFML, and other leaves concurrently has been a common and often recommended practice, understanding specific rules that apply in these scenarios has long been a concern for employers. The Department of Labor, in recently issued DOL Opinion Letter FMLA2025-1-A, finally addresses the interplay between the FMLA and state or local PFML programs when an employee’s absence qualifies for both.

The core issue explored in the opinion letter is how the FMLA’s “substitution” rule operates in these concurrent leave scenarios, particularly regarding the use of PFML and whether the same principles as those that apply to disability plans and workers’ compensation benefits apply to PFML. The substitution rule generally allows an employee to elect, or an employer to require that an employee, substitute accrued employer-provided paid leave (including vacation, PTO, or sick leave) while also falling under the protections of unpaid FMLA leave, which means that the employee can elect to have, or an employer can require, that the employer-provided paid leave run concurrently with FMLA leave. Employers have long been uncertain how to apply the rule when state or local PFML benefits are also involved.

The opinion letter clarifies that the FMLA substitution rule does not apply when employees receive benefits under a state or local PFML program, just as it does not when the employee is receiving paid disability or workers’ compensation benefits. This clarification means employees can choose, or be required by their employer, to use their state or local PFML concurrently with FMLA leave. The DOL emphasizes that this coordination is permissible even if the state or local law does not explicitly address the interaction with FMLA and offers employers a clearer framework for managing these often complex leave situations.

Another key takeaway from the opinion letter is that using state PFML concurrently with FMLA leave does not diminish the employee’s protections under FMLA. The FMLA’s 12 weeks of leave remain protected, regardless of whether the employee receives state or local PFML benefits during that time, thereby ensuring that employees receive the full federal protection of the FMLA while also accessing state or local benefits.

Additionally, the DOL’s guidance touches upon the implications of PFML providing partial income replacement. If an employer offers employer-provided accrued paid leave benefits in addition to state or local PFML, the opinion letter suggests that these employer-provided benefits can also be used concurrently with FMLA leave to “top off” the PFML benefit.

This opinion letter is significant because it provides much-needed clarity in an area where confusion often arises. The increasing prevalence of state and local PFML programs necessitates clear guidance on how these laws interact with the FMLA. By addressing the substitution rule in this context, the DOL helps employers navigate the complexities of concurrent leave and ensures employees understand their rights and options.

Ultimately, FMLA2025-1-1 aims to streamline the administration of FMLA leave when state or local PFML is involved, promoting a more consistent and predictable approach for both employers and employees. It reinforces the principle that the FMLA provides a baseline of protection, which can be supplemented by state benefits, without diminishing the federal entitlement.

Next Steps for Employers:

Employers should carefully review DOL Opinion Letter FMLA202-1-A and ensure that their current policies and procedures are consistent with the new guidance.

II. Navigating the Tax Implications of State PFML Programs

    The rise of state-level PFML programs has brought a wave of tax-related questions from employers, employees, and other stakeholders. Previously, state guidance on PFML taxation was often vague, leaving many to seek expert advice. However, the IRS issued Revenue Ruling 2025-4, providing much-needed clarity on these complex issues.

    Federal Tax Implications:
    State Tax Implications:

    State tax treatment of PFML contributions and benefits varies. Employers must consult the specific laws, rules, regulations, and guidance for each state program to ensure compliance.

    PFML Contribution Requirements:

    In 2025, state PFML programs have varying requirements for employee and employer contributions when the employer participates in the state plan. Exceptions may apply based on employer size or private plan offerings. Consult the specific state program details for accurate contribution requirements.

    Next Steps for Employers:

    Employers should carefully review Revenue Ruling 2025-4 and any related state guidance. During the 2025 transition period, adjustments to taxation practices may be necessary. This may include updating employee handbooks, policies, FAQs, payroll systems, and other relevant resources. Proactive compliance is crucial, as employers are generally responsible for the correct administration of these programs.

    For further questions or assistance regarding either the DOL Opinion Letter or the IRS Revenue Ruling, please contact Spring.

    We recently published an article on Neebc.org spotlighting some Paid Family and Medical Leave updates across New England in 2025. You can find the full article here.

    As summer winds down, the Disability Management Employer Coalition (DMEC) hosted its 2024 Annual Conference in the energetic city of Nashville, TN. Known for its rich musical heritage, Nashville provided a lively backdrop for this year’s event, bringing together professionals from across the absence management spectrum to discuss the latest trends, challenges, and best practices. Here are some key highlights from the conference.

    1) The Future of Paid Family and Medical Leave (PFML)

    The focus on mental health remains prevalent as organizations continue to find innovative ways to support employee well-being. This year’s conference offered valuable insights into how mental health is evolving in the benefits industry:

    -The session The Importance of a Guided Claim Experience emphasized the need for compassionate and informed support during the claims process, which can significantly impact employee well-being.

    – I was joined by a group of leave solution leaders to examine findings from a recent leave report which looked at various factors including recruitment, retention, productivity, moral, and more with a focus on how successful employers are addressing leave managementns on benefits spend and workplace culture.

    – One of the catchiest presentations, Walk, Crawl, Run: The PWFA Turns One, reflected on the one-year anniversary of the Pregnancy Workers Fairness Act (PWFA) and best practices for HR teams to stay compliant.

    2) ADA/FMLA Compliance Updates

    Navigating the complex web of federal, state, and local regulations remains a critical challenge for employers. This year’s sessions provided valuable guidance on staying compliant while managing diverse and geographically dispersed workforces:

    3) Telework Accommodations

    As companies continue to navigate the post-pandemic landscape, finding the right balance between remote work and returning to the office is top of mind. The conference sessions provided practical insights into managing this transition effectively:

    – The session “You Can Have Paid Leave AND a Productive Workforce. Here is the Secret Sauce.” explored how flexible work arrangements can coexist with robust paid leave policies to enhance employee satisfaction and productivity.

    – Council from Reliance Matrix explained how many employers are quick to provide leave of absence to workers with a medical condition, whereas many alternative compliant leave options exist in their presentation, Encouraging Employees to Stay at Work or Return to Work.

    –Another eye-catching session, We Goofed. Now What? An Accommodations Tale, brought light to a common scenario in which an employer fails to provide adequate accommodations under the ADA and/or PWFA; as well as best practices to address said employees’ needs.

    4) Tech/AI’s Role in Absence Management

    Technology continues to play a transformative role in the absence and disability management space, offering new ways to streamline processes and improve decision-making:

    – Spring’s in-house attorney, Lynne Noel, together withPatagonia’s Senior Manager, Leave of Absence, Lauren Shipper, discussed Using Benchmarking to Refresh Your Program. They highlighted the importance of leveraging data to stay competitive and refine absence management programs. Insights provided actionable strategies for using benchmarking as a tool for continuous improvement.

    – A group of data analytic experts explained the practical parameters of AI solutions in claims processes and the upsides and dangers to implementing AI systems in their presentation, The Transformation: How AI is Enhancing Analytics and Optimizing Decision-Making.

    – During the session, The Future of AI in Leave and Disability Management, three leave and disability administrators discussed the current state of AI in the industry and how it can help streamline processes and improve employee satisfaction.

    Final Thoughts

    The DMEC 2024 Annual Conference in Nashville was a resounding success, filled with opportunities to learn, connect, and share best practices. From deep dives into compliance and mental health to exploring the latest technological innovations, the conference offered something for everyone. As always, it was a pleasure to reconnect with industry leaders and bring back fresh ideas to enhance our consultative offerings. We’re already looking forward to what next year’s conference will bring!

    Every industry has its own challenges and nuances. Since our client base is widely varied, we routinely partner with our clients to tackle unique, industry specific obstacles as they build out customized employee benefit programs and strategies. When it comes to the airline sector, a specific pain point relates to adequate long term disability coverage for their licensed pilot employees.

    Background

    Pilot union contracts typically require airlines (the employer) to provide long term disability (LTD) insurance to their pilots, but this coverage has become nearly impossible to procure in the traditional LTD market, for a range of risk reasons:

    Pilots are humans like the rest of us, but given the stressful nature of their job and the consequences of their environment, they might be in greater need of LTD coverage than the average worker. For example, the FAA estimates the prevalence of substance misuse is 8.5% among pilots, with other sources placing that rate as high as over 15%1.

    Sensibly, the FAA’s regulations around pilot licensing are very stringent, so there is a large risk that a pilot will lose their license over a medical condition, including the substance issues referenced above. As a result, the gap in the market for conventional LTD coverage has yielded a specialty market specific for pilots, which is based on the loss of a pilot’s license instead of the traditional definitions of disability, which are based on the ability to perform either the material and substantial duties of one’s own occupation or any occupation which could be reasonably expected to perform in light of their background. Since these loss of license plans are generally structured either as a monthly benefit while a pilot is grounded or as a lump sum, pilots who do not lose their license essentially have no product option available that provides income replacement as a traditional LTD plan would. In addition, even when the specialty coverage would provide a benefit, it is limited in availability and, with very little competition, premiums are high and there is minimal, if any, room for customization.

    Potential Solution

    At Spring, we often say that captives are the whiteboard of insurance, meaning that they can be leveraged and crafted in a diverse range of ways to solve for unique and evolving challenges. LTD coverage for pilots can be added to that whiteboard.

    Most airlines currently have a captive insurance company, which they may only be utilizing for property and casualty (P&C) lines of coverage. Even when an airline does have employee benefits in their captive, they are typically not leveraging the captive for long term disability insurance or other voluntary benefits.

    Long tail risks such as disability are particularly beneficial for captives. Traditionally, when premiums are paid to carriers they hold and maintain any investment income earned on reserves. When funding these long-term liabilities through a captive, the investment income earned is held until the time of loss and stays within the captive.  These investment returns are substantial and serve as yet another benefit for placing disability coverages into the captive.

    Having employee benefits (including LTD) in a captive provides the following advantages:

    The biggest benefits for airlines placing LTD through their captive program is creating greater control of customization of coverage and are less susceptible to market volatility and pricing by moving away from the commercial market.

    Having a combined P&C and employee benefits captive program, which incorporates LTD, would further strengthen the airline’s overall captive and risk management strategy by offering risk diversification, since LTD risks are unrelated to the existing P&C risks underwritten in the captive. Along with projected increased profits of the LTD line of coverage, this approach increases the number of statistically independent exposures, which improves the stability of the overall program. In addition to LTD, medical stop loss could also be added to the captive to protect against catastrophic claims and create more predictability.

    Action Plan

    LTD insurance for pilots has been an issue for years in the airline industry, and no optimal commercially available solution has come forth. Captive insurance has long been a strategic approach to niche or especially challenging insurance obstacles and essentially how and why captives were born. The LTD commercial market is prime for disruption, and for those willing to move towards a more flexible and beneficial program, a captive insurance company can provide an answer.

    1 https://thehill.com/opinion/healthcare/4336555-the-faa-must-prioritize-pilot-well-being-to-improve-flight-safety/#:~:text=The%20FAA%20estimates%20the%20prevalence,identify%20these%20grave%20health%20concerns

    The absence management conversation is a critical component of every employer’s broader employee benefit strategy discussion these days, especially given the competitive talent market and the rapidly evolving regulatory landscape surrounding leave of all types and at all levels (federal, state, local). Now, more than ever, employers and employees need to understand how all available benefits, including supplemental health plans, such as Accident, Critical Illness, and Hospital Indemnity, work together. Compliance isn’t the only consideration, though. Employers need to be sure not to duplicate processes which can increase costs as well as to ensure a smooth and positive employee experience.

    Understanding supplemental health products and the benefits provided by them ensures that those paying for the coverage will fully utilize the benefits available. Since Accident, Critical Illness, and Hospital Indemnity benefits are paid when an accident occurs, a critical illness is diagnosed, or a hospital stay is required due to injury or illness, they offer a way to fill in the financial gaps left by traditional health insurance, disability coverage, and paid leave benefits. The lump sum benefits paid by the supplemental health plans can be used to cover out-of-pocket expenses like medical copays and deductibles, as well as to supplement the income replacement benefits provided by paid leave and/or disability plans.

    The good news is that insurance carriers have made significant progress over the last few years toward the integration of absence and supplemental health products.1 Many are, now, not only bundling supplemental health products with their core disability and absence products and offering a package discount to the core products when quoting, but also tackling the more complex issue of how to ensure that employees enrolled in supplemental health plans are receiving the financial benefit of the products they pay for with payroll deductions.

    To ensure that supplemental health plan participants receive the benefits they are entitled to under their policies, most carriers are digging into questions like:

    Carriers are also reviewing their processes to find efficiencies and create a better claimant experience. This internal retrospection has led to things like coordinated leave, disability, and supplemental health claim intake and the sharing of medical information across all claims. Many carriers are not only building out coordinated claim paths and workflows for leave, disability, and supplemental health claims, but they are also having their leave and disability claim specialists conduct routine analysis of current leave and disability claim files to see what other coverages an insured is eligible for and whether the medical information on file could be used to adjudicate the corresponding supplemental health benefit claims. Some carriers who have access to medical claim files offer auto-generated notifications, which are sent to supplemental health plan participants, reminding them of their supplemental health benefits based on the medical claim data. Software and technology companies as well as third-party administrators (TPAs) who often handle leave benefit administration are also focused on product improvements in the areas of artificial intelligence (AI), automations, self-service portals, communications, intake, and reporting. All these claim process adaptations alleviate steps for the insured and make it easier, overall, for them to know what benefits are available and be able to utilize them. They also help claimants to maximize the value of the benefits for which they are paying and enhance the customer experience that is top of mind for employers of all types, sizes, and industries.

    1 Spring Consulting Group.  2022-2023 Integrated Disability, Absence, and Health and Productivity Vendor Benchmarking Survey.