NC Paid Family Leave Insurance Act (S418) Summary

• Establishes a paid family leave insurance program effective January 1, 2024, with benefits beginning January 1, 2025, administered by the Division of Employment Security.

• Provides wage replacement benefits to covered employees for qualifying reasons including new child care, serious health conditions, caring for family members, military service-related needs, and qualifying exigencies, with maximum durations of 12-26 weeks per application year depending on reason.

• Benefit amounts replace 90% of weekly wages up to the state average weekly wage and 50% above that threshold, with minimum weekly benefit of $100 and maximum of 100% of state average weekly wage.

• Employers must contribute payroll amounts determined by the Assistant Secretary using actuarial principles for 2024-2025, then adjusted annually to maintain a fund balance of at least 140% of prior fiscal year expenditures; employers cannot deduct more than 50% of contributions from employee wages.

• Prohibits retaliatory actions, maintains employee health benefits during leave, requires job restoration upon return, and allows intermittent or reduced leave schedules; violations subject to damages, liquidated damages, attorney fees, and equitable relief recoverable in court.