Paid Family and Medical Leave Overview.
The Paid Family and Medical Leave (PFML) program provides partial wage replacement to employees on leave for specified family and medical reasons. The Employment Security Department (ESD) administers the PFML program.
Qualified employees are eligible for the following maximum leave amounts per calendar year:
Available Leave.
Paid family leave benefits are provided when an employee is bonding after the birth or placement of a child under the age of 18, because of a family member's serious health condition, or for a military exigency.
Paid medical leave benefits are provided for an employee's own serious health condition which includes, among other circumstances, any period of incapacity due to pregnancy or for prenatal care.
When applying for leave based on a serious health condition, pregnancy, or birth of a child, the ESD requires certification of the condition, with information provided by the employee and the health care provider.
Collective Bargaining Agreements.
The PFML program provides that parties to a collective bargaining agreement (CBA) in existence on October 19, 2017:
Confidential Records.
With some defined exceptions, the ESD must keep information regarding individuals and employers under the PFML program private and confidential. The ESD does not publicly list employers that have approved voluntary plans under the PFML program.
Joint Legislative Audit and Review Committee.
The Joint Legislative Audit and Review Committee (JLARC) is composed of an equal number of House of Representatives and Senate members, Democrats and Republicans. The JLARC nonpartisan staff conduct performance audits, program evaluations, special studies, and sunset reviews.
Available Leave.
Paid family leave benefits are provided during the seven calendar days following the death of the family member for whom the employee would have qualified for medical leave for the birth of their child; or would have qualified for family leave to bond with their child during the first 12 months after birth, or during the first 12 months after the placement of a child under age 18 with the employee.
Any paid leave benefits used in the first 6 weeks after childbirth, when eligibility is based on pregnancy or prenatal care, must be medical leave unless the employee chooses to use family leave. Certification of a serious health condition is not required for this use of medical leave.
Collective Bargaining Agreements.
The section exempting pre-existing CBAs expires December 31, 2023.
Confidential Records.
The ESD must publish on its website a current list of all employers that have approved voluntary plans under the PFML program.
Actuarial Services, Reports.
Calendar Year 2022.
The Office of Financial Management (OFM) must enter into a contract with a public or private entity for actuarial services to provide a report to the Legislature by October 1, 2022, on the following:
This contract is exempt from competitive procurement requirements. The ESD may share data with the OFM for the actuarial services. The OFM and ESD may request assistance from the State Actuary, including forming a data-sharing agreement between the State Actuary and the ESD for PFML actuarial purposes.
The Office of Actuarial Services (Office) is established within the ESD.
Calendar Year 2023.
Beginning January 1, 2023, the Office must report annually, by November 1, to the PFML Advisory Committee (Advisory Committee) on the:
The report must be submitted to the Legislature in calendar years 2023 through 2028. Beginning October 1, 2023, the ESD must report quarterly to the Advisory Committee on premium collections, benefit payments, the PFML account balance, and other program expenditures.
Legislative Task Force.
A legislative task force on PFML program premiums (Task Force) is created with members from both chambers and parties of the Legislature, the voting members of the Advisory Committee, and Governor appointees representing the Governor's Office and the ESD. Staff support for the Task Force must be provided by nonpartisan legislative staff.
The Task Force must review the reports to the Legislature and make recommendations for legislative changes to the premium provisions to ensure the lowest premium rates necessary to maintain solvency while limiting fluctuations in rates.
The Task Force must convene its first meeting by November 4, 2022, and issue a final report to the Governor and Legislature by December 30, 2022.
Joint Legislative Audit and Review Committee.
By October 1, 2024, JLARC must conduct a performance audit analyzing the implementation of the PFML program. The analysis must include, at a minimum, the following components:
The ESD may share data with JLARC for the purpose of conducting performance audits.
Other.
Beginning July 1, 2022, and until 12 months after the end of the COVID-19 state of emergency, the ESD must ask PFML program applicants whether their requested leave is related to the COVID-19 pandemic. Such disclosures are limited to monitoring potential impacts on the solvency and stability of the PFML account and subject to certain privacy and data sharing provisions.
The striking amendment allows data sharing from the ESD to:
(In support) The current version of the bill is essentially a vehicle to assess the program and its financial health, using both short- and long-term assessments. The bill should better position the Legislature and the PFML Advisory Committee to make any changes to this important program. The proposed policy changes should be easily incorporated into ESD's current work. The current problems with the PFML program were a surprise. The full PFML Advisory Committee supports this bill.
(Opposed) None.