HF 3505 Summary

• Creates a family and medical leave benefit insurance program administered by the Department of Employment and Economic Development, providing up to 12 weeks of paid leave per 52-week period for qualifying events including serious health conditions, pregnancy, bonding with newborns or adopted children, and caring for family members.

• Imposes a payroll tax on employers and employees (starting at 0% in 2017, 0.05% in 2018, and 0.1% in 2019, with rates adjusting to 0.27% combined beginning January 1, 2020) to fund the program, with wages subject to tax capped at the Social Security wage base.

• Establishes weekly benefit payments ranging from 55-80% of average weekly wage depending on income level, with a maximum benefit amount equal to the state's average weekly wage, and requires employers to maintain health insurance coverage for employees on leave.

• Allows employers to opt out of one or both programs if they provide equivalent private plans approved by the commissioner, and permits self-employed individuals to elect coverage with a minimum two-year commitment.

• Creates a special revenue fund account for the program and appropriates general fund money in fiscal year 2017 for administrative setup and implementation.