HB 550 - Family and Medical Leave Insurance Summary

• Creates a paid family and medical leave insurance program administered by the Director of Job and Family Services, allowing eligible individuals to receive benefits for serious health conditions, caring for family members, or bonding with new children.

• Establishes premium system where employers deduct and withhold premiums from employee wages (sliding scale based on yearly earnings) starting July 1, 2021, with benefits payable beginning July 1, 2022.

• Provides benefit payments of up to 12 weeks per 12-month period, with weekly amounts ranging from 60-95% of average weekly wage depending on earnings level, with a maximum of $1,000 per week (adjusted annually for inflation).

• Exempts benefits from personal income tax and establishes the Family and Medical Leave Insurance Fund managed by the State Treasurer to collect and disburse payments.

• Adds employment protections preventing employers from discharging, demoting, or discriminating against employees for filing claims or receiving benefits, with civil penalties up to $3,000 per violation.