The new leave program would:
- Require employees and employers to each contribute 0.2% of wages through a new payroll tax;
- Provide employees on leave up to 66% of their wages, capped at $4,000 a month, for up to 12 weeks;
- Provide paid leave for Family and Medical Leave Act purposes, including a serious personal or family health issue, to care for a newborn or newly adopted child, or for circumstances arising from a loved one’s military deployment or serious injury; and
- Guarantee portable coverage so that workers who have multiple jobs, change jobs, or are self-employed are provided with the same leave benefit as traditional employees.
The legislation would NOT preempt state and local laws, nor provide a safe harbor for similar or more generous employer leave programs. Many employers already provide paid leave for some FMLA situations, often through a disability insurance program. Under the bill, those employers and their employees would still be required to pay the premiums.
Outlook: With 197 cosponsors, there is a good chance the House will pass the legislation, but its fate is less certain in the Senate. Since it is a tax measure, the FAMILY Act could be included in the next budget reconciliation bill later this year, which only requires 51 votes in the Senate.