SB 254 Summary

• Department of Labor shall contract with a qualified third-party actuary by January 1, 2027, to conduct an actuarial study for a paid family and medical leave insurance program, with findings made public within 30 days of completion.

• Actuarial study must analyze startup costs, state administration costs, outreach and education expenses, required premium contributions for 5-10 year solvency, claim trends, and annual revenues, expenditures, and reserves.

• Study shall examine 12 specific program parameters including leave purposes, coverage of public/private/nonprofit employees and self-employed workers, eligibility standards, inclusive family definitions, social insurance model structure, wage replacement rates, maximum weekly benefits, maximum leave duration of at least 12 weeks per year, waiting periods up to 7 days, reinstatement rights, and state administrative costs.

• Qualified third-party actuary must model and compare costs of at least two different paid family and medical leave insurance program models based on programs adopted in other states, maintaining reserves at approximately 135% of previous fiscal year benefits paid plus 100% of administration costs.

• Department shall establish a public stakeholder working group to identify program parameters for modeling and shall promulgate necessary rules; act becomes effective November 1, 2025.