SB 1632 Summary

• Establishes a family and medical leave insurance program in Arizona, effective January 1, 2027, providing up to 26 weeks of paid leave for serious health conditions and up to 24 weeks for new child care, family member care, military family exigencies, and domestic/sexual violence situations.

• Requires equal employer-employee payroll contributions (1:1 ratio) beginning January 1, 2026, with contribution rates set annually by the Industrial Commission based on sound actuarial principles and fund balance requirements.

• Provides weekly benefits ranging from $100 minimum to $1,000 maximum (adjusted annually to 90% of state average weekly wage), calculated at 90% of average weekly wage for lower earners and a tiered formula for higher earners.

• Protects employees from retaliation and guarantees job restoration to equivalent position upon leave completion, health benefit continuation during leave, and enforcement through director investigations, civil actions, and court remedies including damages and attorney fees.

• Allows self-employed individuals to elect coverage for minimum three-year periods and permits intermittent or reduced leave schedules with prorated benefits, while maintaining coordination with federal Family and Medical Leave Act requirements.