SF2 - Paid Family and Medical Leave Benefits Bill Summary

• Creates new paid family and medical leave program: Establishes a state-administered family and medical benefit insurance program (Chapter 268B) providing wage replacement benefits for employees taking leave for bonding, family care, serious health conditions, qualifying exigencies, and safety leave, effective July 1, 2025.

• Premium structure and employer-employee cost sharing: Employers pay minimum 50% of annual premiums (0.7% initial rate on taxable wages); employees pay remaining portion through wage deductions, with small business exclusions for employers with fewer than 30 employees.

• Benefit amounts and duration: Weekly benefits calculated as percentage of wages (90% up to 50% of state average wage, declining percentages above), capped at state's average weekly wage; employees can receive up to 12 weeks annually for medical leave or family/bonding leave combined.

• Private plan alternative: Allows employers to establish approved private plans meeting or exceeding state program standards instead of participating in the public system, subject to commissioner oversight and annual approval/oversight fees.

• Appropriations and implementation: Allocates $122.3 million in start-up and administrative costs across fiscal years 2024-2025; requires actuarial study; modifies related benefit programs (medical assistance, MFIP) to account for family and medical leave benefits.