S.F. No. 1205 Summary

• Establishes paid family and medical leave program administered by the Department of Employment and Economic Development, providing wage replacement benefits for employees taking qualifying leave for family care, bonding, pregnancy, serious health conditions, qualifying exigencies, or safety leave

• Employer premiums and coverage start January 1, 2023, with initial rates of 0.6% on taxable wages for employers participating in both family and medical programs; self-employed individuals may elect coverage and pay half the employee premium rate

• Employee benefits include up to 12 weeks annually for serious health conditions or pregnancy, and up to 12 weeks for bonding, family care, safety leave, or military exigencies; weekly benefits calculated as a percentage of wages with a maximum equal to the state's average weekly wage

• Allows private plan substitution where employers may apply for approval to provide equivalent private plans instead of participating in the state program, subject to commissioner approval and oversight requirements

• Appropriates $10.8 million in FY2022 and $23.25 million in FY2023 for program administration, outreach, and technology systems, with ongoing appropriations in subsequent years funded through the paid family medical leave account from premium collections