Paid Family and Medical Leave

This week, the Senate began the hearing process for Paid Family and Medical Leave, SF2/HF2. Today, Senate Jobs and Economic Development committee heard the bill, and tomorrow Senate Labor will hear the bill. HM is closely monitoring the bill as a one size fits all mandate is challenging for small businesses. HM is weighing in appropriately and working in coalitions to give feedback on the legislation. 

Key components of the Paid Family and Medical Leave legislation, as drafted: 

• Establishment of a state-administered paid leave insurance program. 
  
• Payroll tax of 0.7%. 
  
• Employer will pay a yearly premium on employees taxable wages. Employer may deduct up to 50% of premium for employees wage. 
  
• Beginning on January 1, 2026 premiums may increase or decrease annual percentage rates based on the formula set by the state.  
  
• Funds partial wage replacement benefits for 12 weeks of paid parental and family leave; and 12 weeks of paid medical leave.  
  
• Employees could miss up to 24 weeks of work, plus potentially add Earned Safe and Sick Time or Family Medical Leave Act.  
  
• Effective January 1, 2024.  

Read SF2/HF2 

Read Senate Counsel Research Summary

Read HM Written Testimony for SF2