Arizona 2022 Regular Session

Arizona Senate Bill SB1644 Compare Versions

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1	1	REFERENCE TITLE: family and medical leave; benefits State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022 SB 1644 Introduced by Senators Tern: Alston, Bowie, Contreras, Gabaldon, Gonzales, Hatathlie, Marsh, Otondo, Quezada, Rios, Stahl Hamilton, Steele; Representatives Hernandez M, Solorio AN ACT amending Title 23, chapter 2, Arizona Revised Statutes, by adding article 8.2; relating to employment practices. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: family and medical leave; benefits
10	10	State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022
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12	12	Introduced by Senators Tern: Alston, Bowie, Contreras, Gabaldon, Gonzales, Hatathlie, Marsh, Otondo, Quezada, Rios, Stahl Hamilton, Steele; Representatives Hernandez M, Solorio
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14	14	REFERENCE TITLE: family and medical leave; benefits
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46	46	Senators Tern: Alston, Bowie, Contreras, Gabaldon, Gonzales, Hatathlie, Marsh, Otondo, Quezada, Rios, Stahl Hamilton, Steele; Representatives Hernandez M, Solorio
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52	52	AN ACT
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56	56	amending Title 23, chapter 2, Arizona Revised Statutes, by adding article 8.2; relating to employment practices.
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66	66	Be it enacted by the Legislature of the State of Arizona: Section 1. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding article 8.2, to read: ARTICLE 8.2. FAMILY AND MEDICAL LEAVE START_STATUTE23-382. Definitions In this article, unless the context otherwise requires: 1. "Abuse" has the same meaning prescribed in section 23-371. 2. "Application year" means the twelve-month period beginning on the first day of the calendar week in which an individual files an application for family and medical leave insurance benefits. 3. "Average weekly wage" means one-thirteenth of the covered individual's total wages for covered work paid during the quarter of the person's base period in which such total wages were highest. 4. "Base period" has the same meaning prescribed in section 23-605. 5. "Commission" means the industrial commission of Arizona. 6. "Covered individual" means a person to whom all of the following apply: (a) Meets one of the following: (i) Has been paid wages for covered work during the individual's base period equal to at least one and one-half times the wages paid to the individual in the calendar quarter of the individual's base period in which the wages were highest, and the individual has been paid wages for covered work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety times the minimum wage prescribed by section 23-363 that is in effect when the individual files a claim for benefits. (ii) Has been paid wages for covered work during at least two quarters of the individual's base period and the amount of the wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this article and the total of the individual's base-period wages is equal to or greater than the taxable limit for unemployment insurance as specified in section 23-622, subsection B, paragraph 1. (iii) Is self-employed, elects coverage and meets the requirements of section 23-382.12. (b) Meets the administrative requirements outlined in this article and in rules adopted pursuant to this article. (c) Submits an application. 7. "Director" means the director of the commission. 8. "Domestic violence" has the same meaning prescribed in section 23-371. 9. "Employee" has the same meaning prescribed in section 23-362. 10. "Employer" has the same meaning prescribed in section 23-371, except that an employer also includes this state. 11. "Family and medical leave insurance benefits" means the benefits provided under this article. 12. "Family member" has the same meaning prescribed in section 23-371. 13. "Health care provider" means any person licensed under federal law or the laws of this state to provide medical or emergency services, including doctors, nurses, emergency room personnel and certified midwives. 14. "Qualifying exigency leave" means leave based on a need arising out of a covered individual's family member's active duty service or notice of an impending call or order to active duty in the Armed Forces, including any of the following: (a) Providing for the care or other needs of the military member's child or other family member. (b) Making financial or legal arrangements for the military member. (c) Attending counseling. (d) Attending military events or ceremonies. (e) Spending time with the military member during a rest and recuperation leave or following return from deployment. (f) Making arrangements following the death of the military member. 15. "Retaliatory personnel action: (a) Means denial of any right guaranteed under this article, including either of the following: (i) Any threat, discharge, suspension, demotion or reduction of hours or any other adverse action against an employee for the exercise of any right guaranteed in this article. (ii) Reporting or threatening to report an employee's suspected citizenship or immigration status or the suspected citizenship or immigration status of a family member of the employee to a federal, state or local agency. (b) Includes interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing under this article. 16. "Safe leave" means, notwithstanding section 13-4439, absence necessary due to domestic violence, sexual violence, abuse or stalking, if the leave is to allow the covered individual to obtain for the covered individual or the covered individual's family member any of the following: (a) Medical attention needed to recover from physical or psychological injury or disability caused by domestic violence, sexual violence, abuse or stalking. (b) Services from a domestic violence or sexual violence program or victim services organization. (c) Psychological or other counseling. (d) Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking. (e) Legal services, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from the domestic violence, sexual violence, abuse or stalking. 17. "Serious health condition" means an illness, injury, IMPAIRMENT, pregnancy, recovery from childbirth or physical or mental condition that involves inpatient care in a hospital, hospice or residential medical care facility or continuing treatment by a health care provider. 18. "Sexual violence" has the same meaning prescribed in section 23-371. 19. "Stalking" has the same meaning prescribed in section 23-371. 20. "State average weekly wage" means the average monthly wage, as calculated under section 23-1041, subsection E, divided by 4.5. END_STATUTE START_STATUTE23-382.01. Eligibility for benefits Beginning January 1, 2025, family and medical leave insurance benefits are payable to an individual who both: 1. Meets the definition of covered individual under this article. 2. Meets one of the following requirements: (a) Because of birth, adoption or placement through foster care, is caring for a new child during the first year after the birth, adoption or placement of that child. (b) Is caring for a family member with a serious health condition. (c) Has a serious health condition that makes the covered individual unable to perform the functions of the employee's position. (d) Qualifies for qualifying exigency leave arising out of the fact that the family member of the covered individual is on active duty or has been notified of an impending call or order to active duty in the Armed Forces. (e) Is in need of safe leave. END_STATUTE START_STATUTE23-382.02. Duration of benefits A. The maximum number of weeks during which family and medical leave insurance benefits are payable to a covered individual in an application year is as follows: 1. Under section 23-382.01, paragraph 2, subdivision (c), twenty-six weeks. 2. Under section 23-382.01, paragraph 2, subdivision (a), (b), (d) or (e), twenty-four weeks. B. A covered individual is eligible for twenty-six weeks of leave under subsection A, paragraph 1 of this section and twenty-four weeks of leave under subsection A, paragraph 2 of this section in an application year. C. The first payment of benefits must be made to a covered individual within two weeks after the claim is filed, and subsequent payments must be made every two weeks thereafter. END_STATUTE START_STATUTE23-382.03. Amount of benefits A. The weekly amount of family and medical leave insurance benefits is determined as follows: 1. If the covered individual's average weekly wage is equal to or less than one-half of the state average weekly wage, the benefit amount is equal to ninety percent of the covered individual's average weekly wage. 2. If the covered individual's average weekly wage is greater than one-half of the state average weekly wage, the benefit amount is the sum of both of the following: (a) Ninety percent of one-half of the state average weekly wage. (b) Fifty percent of the difference of the covered individual's average weekly wage and one-half of the state average weekly wage. B. Beginning January 1, 2025, the maximum weekly benefit amount calculated pursuant to subsection A of this section is not more than $1,000 per week, except that annually, not later than October 1 of each year thereafter, the commission shall adjust the maximum weekly benefit amount to be ninety percent of the state average weekly wage and the adjusted maximum weekly benefit amount shall take effect on January 1 of the year following the adjustment. C. The minimum weekly benefit may not be less than $100 per week, except that if the covered individual's average weekly wage is less than $100 per week, the weekly benefit shall be the covered individual's full wage. D. Family and medical leave insurance benefits are not payable for fewer than eight hours of family and medical leave taken in one work week. END_STATUTE START_STATUTE23-382.04. Contributions A. Payroll contributions are authorized to finance the payment of benefits under the family and medical leave insurance program. B. Beginning January 1, 2024, Payroll contributions shall be paid by employers and employees in the ratio of one to one in an amount to be determined by the commission. C. Not later than October 1 of each year, the commission shall fix the contribution rate for the succeeding calendar year as follows: 1. For calendar years 2024 and 2025, the commission shall do so based on sound actuarial principles. 2. For calendar year 2024 and each calendar year thereafter, the commission shall first certify and publish all of the following information: (a) The total amount of family and medical leave insurance benefits paid by the commission during the previous fiscal year. (b) The total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the fiscal year. (c) The total amount equal to one hundred forty percent of the previous fiscal year's expenditures to pay for family and medical leave insurance benefits and to administer the family and medical leave insurance program. (d) The amount by which the total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the previous fiscal year is less than or greater than one hundred forty percent of the previous fiscal year's expenditures to pay for family and medical leave insurance benefits and to administer the family and medical leave insurance program. (e) The amount by which the contribution rate shall be adjusted to ensure that the family and medical leave insurance fund established by section 23-382.15 maintains or achieves an annualized amount of at least one hundred percent of the previous fiscal year's expenditures to pay family and medical leave insurance benefits and to administer the family and medical leave insurance program. The contribution rate adjustment, if any, made as the result of the commission's certification and report under this subsection supersedes the rate previously set forth and becomes effective on January 1 of the following calendar year. D. A self-employed individual who elects coverage under section 23-382.12 is responsible for the employee share of contributions set forth in subsection B of this section on that individual's income from self-employment. END_STATUTE START_STATUTE23-382.05. Reduced leave schedule A. A covered individual is entitled, at the option of the covered individual, to take paid family and medical leave on an intermittent or reduced leave schedule in which all of the leave authorized under this article is not taken sequentially. Family and medical leave insurance benefits for intermittent or reduced leave schedules shall be prorated. B. The covered individual shall provide the employer with notice of the schedule on which the covered individual will be taking the leave, to the extent practicable. Paid family and medical leave taken under this section may not result in a reduction of the total amount of leave to which an employee is entitled beyond the amount of leave actually taken. C. This section does not entitle a covered individual to more leave than required under section 23-382.02. END_STATUTE START_STATUTE23-382.06. Leave and employment protection; enforcement A. Any covered individual who exercises the covered individual's right to family and medical leave insurance benefits is entitled, on the expiration of that leave, to be restored by the employer to the position the covered individual held when the leave commenced, or to a position with equivalent seniority, status, employment benefits, pay and other terms and conditions of employment, including fringe benefits and service credits, that the covered individual had been entitled to at the commencement of leave. B. During any leave taken pursuant to this article, the employer shall maintain any health care benefits the covered individual had before taking such leave for the duration of the leave as if the covered individual had continued in employment continuously from the date the covered individual commenced the leave until the date the family and medical leave insurance benefits terminate, if the covered individual continues to pay the covered individual's share of the cost of health benefits as required before the commencement of the leave. C. This section and section 23-382.07 shall be enforced as follows: 1. On receipt of a written complaint from an employee, the director shall investigate whether the employer has violated this article. 2. If the director determines that an employer has violated this article, the director shall do any of the following: (a) With the written consent of the employee, attempt to informally resolve any pertinent issue through mediation. (b) With the written consent of the employee, request the attorney general to bring an action on behalf of the employee in accordance with this article. (c) Bring an action on behalf of the employee in the county where the violation allegedly occurred. 3. An employee may bring a civil action in a court of competent jurisdiction against the employee's employer for a violation of this article regardless of whether the employee first filed a complaint with the director. 4. An action brought under paragraph 2 or 3 of this subsection shall be filed within three years after the occurrence of the act on which the action is based. 5. If a court finds that an employer violated this article in an action brought under paragraph 2 or 3 of this subsection, the court may award the employee all of the following: (a) The full monetary value of any unpaid family and medical leave that the employee was unlawfully denied. Unpaid family and medical leave awarded pursuant to this subdivision shall be paid to the employee without cost to the employee. (b) Actual economic damages suffered by the employee as a result of the employer's violation of this article. (c) An additional amount of not more than three times the damages awarded under subdivision (b) of this paragraph. (d) Reasonable attorney fees and other costs. (e) Any other relief that the court deems appropriate, including reinstatement of employment, back pay and injunctive relief. 6. If the action was brought by the attorney general under paragraph 2, subdivision (b) of this subsection, the court shall order the employer to pay at least $1,000 per violation to this state. END_STATUTE START_STATUTE23-382.07. Retaliatory personnel actions prohibited A. It is unlawful for an employer or any other person to interfere with, restrain or deny the exercise of, or the attempt to exercise, any right protected under this article. B. An employer, temporary help company, employment agency, employee organization or other person may not take retaliatory personnel action or otherwise discriminate against a person because the person exercised rights protected under this article. These rights include all of the following: 1. Requesting, filing for, applying for or using benefits or leave provided for under this article. 2. Communicating to the employer or any other person or entity an intent to file a claim, a complaint with the commission or courts or an appeal. 3. Testifying, planning to testify or assisting in any investigation, hearing or proceeding under this article at any time, including during the waiting period and the period in which the person receives family and medical leave insurance benefits under this article. 4. Informing any person about any employer's alleged violation of this article. 5. Informing any person of a person's rights under this article. C. It is unlawful for an employer's absence control policy to count paid family and medical leave taken under this article as an absence that may lead to or result in discipline, discharge, demotion, suspension or any other adverse action. D. The protections of this section apply to any person who mistakenly but in good faith alleges violations of this article. E. There is a rebuttable presumption that an employer has violated this article if the employer takes adverse action against an employee within ninety days after the employee does any of the following: 1. Files a complaint with the director alleging a violation of this article or brings a civil action under this article. 2. Informs a person about the employer's alleged violation of this article. 3. Cooperates with the director or another person in the investigation or prosecution of the employer's alleged violation of this article. 4. Opposes a policy or practice of the employer or an act of the employer that is prohibited under this article. 5. Takes or requests leave or benefits under this article. F. An employer may overcome the rebuttable presumption established pursuant to subsection E of this section with clear and convincing evidence of all of the following: 1. That the employer's action was not retaliation against the employee. 2. That the employer had sufficient independent justification for taking the action. 3. That the employer would have in fact taken the action in the same manner and at the same time the action was taken, regardless of the employee's exercise of protected rights under this article. END_STATUTE START_STATUTE23-382.08. Coordination of benefits A. Leave taken with wage replacement under this article that also qualifies as leave under the family and medical leave act of 1993 (P.L. 1033; 107 Stat. 6) shall run concurrently with leave taken under the family and medical leave act of 1993 (P.L. 1033; 107 Stat. 6). B. A covered individual is not required to use any accrued paid sick, vacation or annual leave, including sick leave under section 23-373, or other paid time off to which the covered individual is entitled before or while receiving family and medical leave insurance benefits, except that if the employer and the covered individual agree, a covered individual may elect to use accrued paid sick, vacation or annual leave or other paid time off to supplement family and medical leave insurance benefits under this article in order to receive full pay while on leave. C. An employer may require that payment made pursuant to this article be made concurrently or otherwise coordinated with payment made or leave allowed under the terms of disability or family care leave under a collective bargaining agreement or employer policy. The employer must give employees written notice of this requirement. D. This article does not diminish an employer's obligation to comply with any of the following that provide more generous leave: 1. A collective bargaining agreement. 2. The employer's policy. 3. Any other law. E. An individual's right to leave under this article may not be diminished by a collective bargaining agreement entered into or renewed, or an employer policy adopted or retained, after the effective date of this article. Any agreement by an individual to waive the individual's rights under this article is void as against public policy. END_STATUTE START_STATUTE23-382.09. Notice; civil penalty A. Each employer shall provide written notice that complies with this section: 1. To each employee on hiring and annually thereafter. 2. To an employee when the employee requests leave under this article. 3. To an employee when the employer acquires knowledge that the employee's leave may be for a qualifying reason under section 23-382.01. B. Any noticed provided under this section shall include all of the following: 1. The employee's right to family and medical leave insurance benefits under this article and the terms under which it may be used. 2. The amount of family and medical leave insurance benefits. 3. The procedure for filing a claim for benefits. 4. The right to job protection and benefits continuation under section 23-382.06. 5. A statement that discrimination and retaliatory personnel actions against a person for requesting, applying for or using family and medical leave insurance benefits is prohibited under section 23-382.07. 6. A statement that the employee has a right to file a complaint for violations of this article. 7. The contact information for the commission where questions about rights and responsibilities under this article can be answered. C. An employer shall also display and maintain a poster in a conspicuous place accessible to employees at the employer's place of business that contains the information required by this section in English, Spanish and any language that is the first language spoken by at least five percent of the employer's workforce, provided that such notice has been provided by the commission. The director may adopt rules to establish additional requirements concerning the means by which employers shall provide such notice. D. In any case in which the necessity for leave under this article is foreseeable, the employee shall provide the employer with at least thirty days' notice before the date the leave is to begin, or, if such notice is not possible, the employee shall provide such notice as is practicable. In any case for which the necessity for leave under this article is not foreseeable, the employee shall provide such notice as is practicable. E. The amount of family and medical leave available to an employee and the amount of family and medical leave taken by an employee to date in the year shall be recorded in, or on an attachment to, the employee's regular paycheck. F. Any employer that violates the recordkeeping, posting or other requirements that the commission establishes under this section is subject to a civil penalty of at least $250 for a first violation and at least $1,000 for each subsequent or wilful violation and, if the commission or court determines appropriate, may be subject to special monitoring and inspections. END_STATUTE START_STATUTE23-382.10. Benefits appeals; confidentiality A. The director shall establish a system for appeals in the case of a denial of family and medical leave insurance benefits. B. Judicial review of any decision with respect to family and medical leave insurance benefits is allowed in a court of competent jurisdiction after a party aggrieved by the decision has exhausted all administrative remedies established by the director. C. The director shall implement procedures to ensure confidentiality of all information related to any claims filed or appeals taken to the maximum extent allowed by applicable laws. END_STATUTE START_STATUTE23-382.11. Disqualification from benefits; erroneous payments; repayment A. A covered individual is disqualified from family and medical leave insurance benefits for one year if the director determines the individual wilfully made a false statement or misrepresentation regarding a material fact, or wilfully failed to report a material fact, to obtain benefits under this article. B. If family and medical leave insurance benefits are paid erroneously or as a result of wilful misrepresentation, or if a claim for family and medical leave insurance benefits is rejected after benefits are paid, the commission may seek repayment of benefits from the recipient. The director shall exercise the director's discretion to waive, in whole or in part, the amount of any such payments for good cause. END_STATUTE START_STATUTE23-382.12. Elective coverage A. A self-employed person, including a sole proprietor, partner or joint venturer, may elect coverage under this article for an initial period of at least three years. The self-employed person must file a notice of election in writing with the director, as required by the commission. The election becomes effective on the date the self-employed person files the notice. As a condition of election, the self-employed person must agree to supply any information concerning income that the commission deems necessary. B. A self-employed person who has elected coverage may withdraw from coverage within thirty days after the end of the three-year period of coverage, or at such other times as the director may prescribe by rule, by filing written notice with the director. The withdrawal shall take effect at least thirty days after the self-employed person files the notice. END_STATUTE START_STATUTE23-382.13. Family and medical leave insurance program; rules A. The commission shall establish and administer a family and medical leave insurance program and, on or before January 1, 2025, shall pay family and medical leave insurance benefits as specified in this article. B. The commission shall establish reasonable procedures and forms for filing claims for benefits under this article and shall specify the supporting documentation that is necessary to support a claim for benefits, including any documentation required from a health care provider for proof of a serious health condition. C. The commission shall notify the employer within five business days after a claim is filed pursuant to this article. D. The commission shall use information sharing and integration technology to facilitate the disclosure of relevant information or records if an individual consents to the disclosure as required under the laws of this state. E. Information contained in the files and records pertaining to an individual under this article is confidential and not open to public inspection, other than to public employees in performing their official duties. The individual or an authorized representative of the individual may review the records or receive specific information from the records on the presentation of the individual's signed authorization. F. The director shall adopt rules as necessary to implement this article. END_STATUTE START_STATUTE23-382.14. Federal income tax If the United States internal revenue service determines that family and medical leave insurance benefits under this article are subject to federal income tax, the commission must advise an individual filing a new claim for family and medical leave insurance benefits, at the time of filing such a claim, of all of the following: 1. That the United States internal revenue service has determined that benefits are subject to federal income tax. 2. That requirements exist pertaining to estimated tax payments. 3. That the individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits in the amount specified in the federal internal revenue code. 4. That the individual is allowed to change a previously elected withholding status. END_STATUTE START_STATUTE23-382.15. Family and medical leave insurance fund A. The family and medical leave insurance fund is established consisting of contributions received pursuant to section 23-382.04 and any other monies. The commission shall administer the fund. Expenditures from the fund may be used only for the purposes of the family and medical leave insurance program, including conducting the public education campaign pursuant to section 23-382.17. Only the director or the director's designee may authorize expenditures from the fund. B. Whenever, in the judgment of the commission, there is in the family and medical leave insurance fund an amount of monies in excess of the amount deemed by the commission to be sufficient to meet the current expenditures properly payable from the fund, the state treasurer may invest, reinvest, manage or contract for, sell or exchange investments acquired with such excess monies in the manner prescribed by the laws of this state on notice from the commission. END_STATUTE START_STATUTE23-382.16. Annual report Beginning September 1, 2025 and each September 1 thereafter, the commission shall submit a report to the governor, the president of the senate and the speaker of the house of representatives, and shall provide a copy of the report to the secretary of state, that includes all of the following: 1. The projected and actual program participation by category pursuant to section 23-382.01. 2. The gender of the beneficiaries. 3. The premium rates. 4. The family and medical leave insurance fund balances. 5. Outreach efforts. 6. For leave taken under section 23-382.01, paragraph 2, subdivision (b), the family members for whom leave was taken to provide care. END_STATUTE START_STATUTE23-382.17. Public education campaign The commission shall conduct a public education campaign to inform employees and employers regarding the availability of family and medical leave insurance benefits. Outreach information shall be available in English, Spanish and other languages spoken by more than five percent of this state's population. The commission shall use monies from the family and medical leave insurance fund established by section 23-382.15 to finance the public education campaign. END_STATUTE START_STATUTE23-382.18. Sharing technology The commission is encouraged to use state data collection and technology to the extent possible and to integrate the family and medical leave insurance program with existing state policies. END_STATUTE Sec. 2. Rulemaking All rules necessary to implement this act shall be adopted within one hundred twenty days after the effective date of this act. Sec. 3. Severability If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 4. Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
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68	68	Be it enacted by the Legislature of the State of Arizona:
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70	70	Section 1. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding article 8.2, to read:
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72	72	ARTICLE 8.2. FAMILY AND MEDICAL LEAVE
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74	74	START_STATUTE23-382. Definitions
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76	76	In this article, unless the context otherwise requires:
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78	78	1. "Abuse" has the same meaning prescribed in section 23-371.
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80	80	2. "Application year" means the twelve-month period beginning on the first day of the calendar week in which an individual files an application for family and medical leave insurance benefits.
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82	82	3. "Average weekly wage" means one-thirteenth of the covered individual's total wages for covered work paid during the quarter of the person's base period in which such total wages were highest.
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84	84	4. "Base period" has the same meaning prescribed in section 23-605.
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86	86	5. "Commission" means the industrial commission of Arizona.
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88	88	6. "Covered individual" means a person to whom all of the following apply:
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90	90	(a) Meets one of the following:
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92	92	(i) Has been paid wages for covered work during the individual's base period equal to at least one and one-half times the wages paid to the individual in the calendar quarter of the individual's base period in which the wages were highest, and the individual has been paid wages for covered work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety times the minimum wage prescribed by section 23-363 that is in effect when the individual files a claim for benefits.
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94	94	(ii) Has been paid wages for covered work during at least two quarters of the individual's base period and the amount of the wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this article and the total of the individual's base-period wages is equal to or greater than the taxable limit for unemployment insurance as specified in section 23-622, subsection B, paragraph 1.
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96	96	(iii) Is self-employed, elects coverage and meets the requirements of section 23-382.12.
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98	98	(b) Meets the administrative requirements outlined in this article and in rules adopted pursuant to this article.
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100	100	(c) Submits an application.
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102	102	7. "Director" means the director of the commission.
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104	104	8. "Domestic violence" has the same meaning prescribed in section 23-371.
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106	106	9. "Employee" has the same meaning prescribed in section 23-362.
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108	108	10. "Employer" has the same meaning prescribed in section 23-371, except that an employer also includes this state.
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110	110	11. "Family and medical leave insurance benefits" means the benefits provided under this article.
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112	112	12. "Family member" has the same meaning prescribed in section 23-371.
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114	114	13. "Health care provider" means any person licensed under federal law or the laws of this state to provide medical or emergency services, including doctors, nurses, emergency room personnel and certified midwives.
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116	116	14. "Qualifying exigency leave" means leave based on a need arising out of a covered individual's family member's active duty service or notice of an impending call or order to active duty in the Armed Forces, including any of the following:
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118	118	(a) Providing for the care or other needs of the military member's child or other family member.
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120	120	(b) Making financial or legal arrangements for the military member.
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122	122	(c) Attending counseling.
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124	124	(d) Attending military events or ceremonies.
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126	126	(e) Spending time with the military member during a rest and recuperation leave or following return from deployment.
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128	128	(f) Making arrangements following the death of the military member.
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130	130	15. "Retaliatory personnel action:
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132	132	(a) Means denial of any right guaranteed under this article, including either of the following:
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134	134	(i) Any threat, discharge, suspension, demotion or reduction of hours or any other adverse action against an employee for the exercise of any right guaranteed in this article.
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136	136	(ii) Reporting or threatening to report an employee's suspected citizenship or immigration status or the suspected citizenship or immigration status of a family member of the employee to a federal, state or local agency.
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138	138	(b) Includes interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing under this article.
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140	140	16. "Safe leave" means, notwithstanding section 13-4439, absence necessary due to domestic violence, sexual violence, abuse or stalking, if the leave is to allow the covered individual to obtain for the covered individual or the covered individual's family member any of the following:
141	141
142	142	(a) Medical attention needed to recover from physical or psychological injury or disability caused by domestic violence, sexual violence, abuse or stalking.
143	143
144	144	(b) Services from a domestic violence or sexual violence program or victim services organization.
145	145
146	146	(c) Psychological or other counseling.
147	147
148	148	(d) Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking.
149	149
150	150	(e) Legal services, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from the domestic violence, sexual violence, abuse or stalking.
151	151
152	152	17. "Serious health condition" means an illness, injury, IMPAIRMENT, pregnancy, recovery from childbirth or physical or mental condition that involves inpatient care in a hospital, hospice or residential medical care facility or continuing treatment by a health care provider.
153	153
154	154	18. "Sexual violence" has the same meaning prescribed in section 23-371.
155	155
156	156	19. "Stalking" has the same meaning prescribed in section 23-371.
157	157
158	158	20. "State average weekly wage" means the average monthly wage, as calculated under section 23-1041, subsection E, divided by 4.5. END_STATUTE
159	159
160	160	START_STATUTE23-382.01. Eligibility for benefits
161	161
162	162	Beginning January 1, 2025, family and medical leave insurance benefits are payable to an individual who both:
163	163
164	164	1. Meets the definition of covered individual under this article.
165	165
166	166	2. Meets one of the following requirements:
167	167
168	168	(a) Because of birth, adoption or placement through foster care, is caring for a new child during the first year after the birth, adoption or placement of that child.
169	169
170	170	(b) Is caring for a family member with a serious health condition.
171	171
172	172	(c) Has a serious health condition that makes the covered individual unable to perform the functions of the employee's position.
173	173
174	174	(d) Qualifies for qualifying exigency leave arising out of the fact that the family member of the covered individual is on active duty or has been notified of an impending call or order to active duty in the Armed Forces.
175	175
176	176	(e) Is in need of safe leave. END_STATUTE
177	177
178	178	START_STATUTE23-382.02. Duration of benefits
179	179
180	180	A. The maximum number of weeks during which family and medical leave insurance benefits are payable to a covered individual in an application year is as follows:
181	181
182	182	1. Under section 23-382.01, paragraph 2, subdivision (c), twenty-six weeks.
183	183
184	184	2. Under section 23-382.01, paragraph 2, subdivision (a), (b), (d) or (e), twenty-four weeks.
185	185
186	186	B. A covered individual is eligible for twenty-six weeks of leave under subsection A, paragraph 1 of this section and twenty-four weeks of leave under subsection A, paragraph 2 of this section in an application year.
187	187
188	188	C. The first payment of benefits must be made to a covered individual within two weeks after the claim is filed, and subsequent payments must be made every two weeks thereafter. END_STATUTE
189	189
190	190	START_STATUTE23-382.03. Amount of benefits
191	191
192	192	A. The weekly amount of family and medical leave insurance benefits is determined as follows:
193	193
194	194	1. If the covered individual's average weekly wage is equal to or less than one-half of the state average weekly wage, the benefit amount is equal to ninety percent of the covered individual's average weekly wage.
195	195
196	196	2. If the covered individual's average weekly wage is greater than one-half of the state average weekly wage, the benefit amount is the sum of both of the following:
197	197
198	198	(a) Ninety percent of one-half of the state average weekly wage.
199	199
200	200	(b) Fifty percent of the difference of the covered individual's average weekly wage and one-half of the state average weekly wage.
201	201
202	202	B. Beginning January 1, 2025, the maximum weekly benefit amount calculated pursuant to subsection A of this section is not more than $1,000 per week, except that annually, not later than October 1 of each year thereafter, the commission shall adjust the maximum weekly benefit amount to be ninety percent of the state average weekly wage and the adjusted maximum weekly benefit amount shall take effect on January 1 of the year following the adjustment.
203	203
204	204	C. The minimum weekly benefit may not be less than $100 per week, except that if the covered individual's average weekly wage is less than $100 per week, the weekly benefit shall be the covered individual's full wage.
205	205
206	206	D. Family and medical leave insurance benefits are not payable for fewer than eight hours of family and medical leave taken in one work week. END_STATUTE
207	207
208	208	START_STATUTE23-382.04. Contributions
209	209
210	210	A. Payroll contributions are authorized to finance the payment of benefits under the family and medical leave insurance program.
211	211
212	212	B. Beginning January 1, 2024, Payroll contributions shall be paid by employers and employees in the ratio of one to one in an amount to be determined by the commission.
213	213
214	214	C. Not later than October 1 of each year, the commission shall fix the contribution rate for the succeeding calendar year as follows:
215	215
216	216	1. For calendar years 2024 and 2025, the commission shall do so based on sound actuarial principles.
217	217
218	218	2. For calendar year 2024 and each calendar year thereafter, the commission shall first certify and publish all of the following information:
219	219
220	220	(a) The total amount of family and medical leave insurance benefits paid by the commission during the previous fiscal year.
221	221
222	222	(b) The total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the fiscal year.
223	223
224	224	(c) The total amount equal to one hundred forty percent of the previous fiscal year's expenditures to pay for family and medical leave insurance benefits and to administer the family and medical leave insurance program.
225	225
226	226	(d) The amount by which the total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the previous fiscal year is less than or greater than one hundred forty percent of the previous fiscal year's expenditures to pay for family and medical leave insurance benefits and to administer the family and medical leave insurance program.
227	227
228	228	(e) The amount by which the contribution rate shall be adjusted to ensure that the family and medical leave insurance fund established by section 23-382.15 maintains or achieves an annualized amount of at least one hundred percent of the previous fiscal year's expenditures to pay family and medical leave insurance benefits and to administer the family and medical leave insurance program. The contribution rate adjustment, if any, made as the result of the commission's certification and report under this subsection supersedes the rate previously set forth and becomes effective on January 1 of the following calendar year.
229	229
230	230	D. A self-employed individual who elects coverage under section 23-382.12 is responsible for the employee share of contributions set forth in subsection B of this section on that individual's income from self-employment. END_STATUTE
231	231
232	232	START_STATUTE23-382.05. Reduced leave schedule
233	233
234	234	A. A covered individual is entitled, at the option of the covered individual, to take paid family and medical leave on an intermittent or reduced leave schedule in which all of the leave authorized under this article is not taken sequentially. Family and medical leave insurance benefits for intermittent or reduced leave schedules shall be prorated.
235	235
236	236	B. The covered individual shall provide the employer with notice of the schedule on which the covered individual will be taking the leave, to the extent practicable. Paid family and medical leave taken under this section may not result in a reduction of the total amount of leave to which an employee is entitled beyond the amount of leave actually taken.
237	237
238	238	C. This section does not entitle a covered individual to more leave than required under section 23-382.02. END_STATUTE
239	239
240	240	START_STATUTE23-382.06. Leave and employment protection; enforcement
241	241
242	242	A. Any covered individual who exercises the covered individual's right to family and medical leave insurance benefits is entitled, on the expiration of that leave, to be restored by the employer to the position the covered individual held when the leave commenced, or to a position with equivalent seniority, status, employment benefits, pay and other terms and conditions of employment, including fringe benefits and service credits, that the covered individual had been entitled to at the commencement of leave.
243	243
244	244	B. During any leave taken pursuant to this article, the employer shall maintain any health care benefits the covered individual had before taking such leave for the duration of the leave as if the covered individual had continued in employment continuously from the date the covered individual commenced the leave until the date the family and medical leave insurance benefits terminate, if the covered individual continues to pay the covered individual's share of the cost of health benefits as required before the commencement of the leave.
245	245
246	246	C. This section and section 23-382.07 shall be enforced as follows:
247	247
248	248	1. On receipt of a written complaint from an employee, the director shall investigate whether the employer has violated this article.
249	249
250	250	2. If the director determines that an employer has violated this article, the director shall do any of the following:
251	251
252	252	(a) With the written consent of the employee, attempt to informally resolve any pertinent issue through mediation.
253	253
254	254	(b) With the written consent of the employee, request the attorney general to bring an action on behalf of the employee in accordance with this article.
255	255
256	256	(c) Bring an action on behalf of the employee in the county where the violation allegedly occurred.
257	257
258	258	3. An employee may bring a civil action in a court of competent jurisdiction against the employee's employer for a violation of this article regardless of whether the employee first filed a complaint with the director.
259	259
260	260	4. An action brought under paragraph 2 or 3 of this subsection shall be filed within three years after the occurrence of the act on which the action is based.
261	261
262	262	5. If a court finds that an employer violated this article in an action brought under paragraph 2 or 3 of this subsection, the court may award the employee all of the following:
263	263
264	264	(a) The full monetary value of any unpaid family and medical leave that the employee was unlawfully denied. Unpaid family and medical leave awarded pursuant to this subdivision shall be paid to the employee without cost to the employee.
265	265
266	266	(b) Actual economic damages suffered by the employee as a result of the employer's violation of this article.
267	267
268	268	(c) An additional amount of not more than three times the damages awarded under subdivision (b) of this paragraph.
269	269
270	270	(d) Reasonable attorney fees and other costs.
271	271
272	272	(e) Any other relief that the court deems appropriate, including reinstatement of employment, back pay and injunctive relief.
273	273
274	274	6. If the action was brought by the attorney general under paragraph 2, subdivision (b) of this subsection, the court shall order the employer to pay at least $1,000 per violation to this state. END_STATUTE
275	275
276	276	START_STATUTE23-382.07. Retaliatory personnel actions prohibited
277	277
278	278	A. It is unlawful for an employer or any other person to interfere with, restrain or deny the exercise of, or the attempt to exercise, any right protected under this article.
279	279
280	280	B. An employer, temporary help company, employment agency, employee organization or other person may not take retaliatory personnel action or otherwise discriminate against a person because the person exercised rights protected under this article. These rights include all of the following:
281	281
282	282	1. Requesting, filing for, applying for or using benefits or leave provided for under this article.
283	283
284	284	2. Communicating to the employer or any other person or entity an intent to file a claim, a complaint with the commission or courts or an appeal.
285	285
286	286	3. Testifying, planning to testify or assisting in any investigation, hearing or proceeding under this article at any time, including during the waiting period and the period in which the person receives family and medical leave insurance benefits under this article.
287	287
288	288	4. Informing any person about any employer's alleged violation of this article.
289	289
290	290	5. Informing any person of a person's rights under this article.
291	291
292	292	C. It is unlawful for an employer's absence control policy to count paid family and medical leave taken under this article as an absence that may lead to or result in discipline, discharge, demotion, suspension or any other adverse action.
293	293
294	294	D. The protections of this section apply to any person who mistakenly but in good faith alleges violations of this article.
295	295
296	296	E. There is a rebuttable presumption that an employer has violated this article if the employer takes adverse action against an employee within ninety days after the employee does any of the following:
297	297
298	298	1. Files a complaint with the director alleging a violation of this article or brings a civil action under this article.
299	299
300	300	2. Informs a person about the employer's alleged violation of this article.
301	301
302	302	3. Cooperates with the director or another person in the investigation or prosecution of the employer's alleged violation of this article.
303	303
304	304	4. Opposes a policy or practice of the employer or an act of the employer that is prohibited under this article.
305	305
306	306	5. Takes or requests leave or benefits under this article.
307	307
308	308	F. An employer may overcome the rebuttable presumption established pursuant to subsection E of this section with clear and convincing evidence of all of the following:
309	309
310	310	1. That the employer's action was not retaliation against the employee.
311	311
312	312	2. That the employer had sufficient independent justification for taking the action.
313	313
314	314	3. That the employer would have in fact taken the action in the same manner and at the same time the action was taken, regardless of the employee's exercise of protected rights under this article. END_STATUTE
315	315
316	316	START_STATUTE23-382.08. Coordination of benefits
317	317
318	318	A. Leave taken with wage replacement under this article that also qualifies as leave under the family and medical leave act of 1993 (P.L. 1033; 107 Stat. 6) shall run concurrently with leave taken under the family and medical leave act of 1993 (P.L. 1033; 107 Stat. 6).
319	319
320	320	B. A covered individual is not required to use any accrued paid sick, vacation or annual leave, including sick leave under section 23-373, or other paid time off to which the covered individual is entitled before or while receiving family and medical leave insurance benefits, except that if the employer and the covered individual agree, a covered individual may elect to use accrued paid sick, vacation or annual leave or other paid time off to supplement family and medical leave insurance benefits under this article in order to receive full pay while on leave.
321	321
322	322	C. An employer may require that payment made pursuant to this article be made concurrently or otherwise coordinated with payment made or leave allowed under the terms of disability or family care leave under a collective bargaining agreement or employer policy. The employer must give employees written notice of this requirement.
323	323
324	324	D. This article does not diminish an employer's obligation to comply with any of the following that provide more generous leave:
325	325
326	326	1. A collective bargaining agreement.
327	327
328	328	2. The employer's policy.
329	329
330	330	3. Any other law.
331	331
332	332	E. An individual's right to leave under this article may not be diminished by a collective bargaining agreement entered into or renewed, or an employer policy adopted or retained, after the effective date of this article. Any agreement by an individual to waive the individual's rights under this article is void as against public policy. END_STATUTE
333	333
334	334	START_STATUTE23-382.09. Notice; civil penalty
335	335
336	336	A. Each employer shall provide written notice that complies with this section:
337	337
338	338	1. To each employee on hiring and annually thereafter.
339	339
340	340	2. To an employee when the employee requests leave under this article.
341	341
342	342	3. To an employee when the employer acquires knowledge that the employee's leave may be for a qualifying reason under section 23-382.01.
343	343
344	344	B. Any noticed provided under this section shall include all of the following:
345	345
346	346	1. The employee's right to family and medical leave insurance benefits under this article and the terms under which it may be used.
347	347
348	348	2. The amount of family and medical leave insurance benefits.
349	349
350	350	3. The procedure for filing a claim for benefits.
351	351
352	352	4. The right to job protection and benefits continuation under section 23-382.06.
353	353
354	354	5. A statement that discrimination and retaliatory personnel actions against a person for requesting, applying for or using family and medical leave insurance benefits is prohibited under section 23-382.07.
355	355
356	356	6. A statement that the employee has a right to file a complaint for violations of this article.
357	357
358	358	7. The contact information for the commission where questions about rights and responsibilities under this article can be answered.
359	359
360	360	C. An employer shall also display and maintain a poster in a conspicuous place accessible to employees at the employer's place of business that contains the information required by this section in English, Spanish and any language that is the first language spoken by at least five percent of the employer's workforce, provided that such notice has been provided by the commission. The director may adopt rules to establish additional requirements concerning the means by which employers shall provide such notice.
361	361
362	362	D. In any case in which the necessity for leave under this article is foreseeable, the employee shall provide the employer with at least thirty days' notice before the date the leave is to begin, or, if such notice is not possible, the employee shall provide such notice as is practicable. In any case for which the necessity for leave under this article is not foreseeable, the employee shall provide such notice as is practicable.
363	363
364	364	E. The amount of family and medical leave available to an employee and the amount of family and medical leave taken by an employee to date in the year shall be recorded in, or on an attachment to, the employee's regular paycheck.
365	365
366	366	F. Any employer that violates the recordkeeping, posting or other requirements that the commission establishes under this section is subject to a civil penalty of at least $250 for a first violation and at least $1,000 for each subsequent or wilful violation and, if the commission or court determines appropriate, may be subject to special monitoring and inspections. END_STATUTE
367	367
368	368	START_STATUTE23-382.10. Benefits appeals; confidentiality
369	369
370	370	A. The director shall establish a system for appeals in the case of a denial of family and medical leave insurance benefits.
371	371
372	372	B. Judicial review of any decision with respect to family and medical leave insurance benefits is allowed in a court of competent jurisdiction after a party aggrieved by the decision has exhausted all administrative remedies established by the director.
373	373
374	374	C. The director shall implement procedures to ensure confidentiality of all information related to any claims filed or appeals taken to the maximum extent allowed by applicable laws. END_STATUTE
375	375
376	376	START_STATUTE23-382.11. Disqualification from benefits; erroneous payments; repayment
377	377
378	378	A. A covered individual is disqualified from family and medical leave insurance benefits for one year if the director determines the individual wilfully made a false statement or misrepresentation regarding a material fact, or wilfully failed to report a material fact, to obtain benefits under this article.
379	379
380	380	B. If family and medical leave insurance benefits are paid erroneously or as a result of wilful misrepresentation, or if a claim for family and medical leave insurance benefits is rejected after benefits are paid, the commission may seek repayment of benefits from the recipient. The director shall exercise the director's discretion to waive, in whole or in part, the amount of any such payments for good cause. END_STATUTE
381	381
382	382	START_STATUTE23-382.12. Elective coverage
383	383
384	384	A. A self-employed person, including a sole proprietor, partner or joint venturer, may elect coverage under this article for an initial period of at least three years. The self-employed person must file a notice of election in writing with the director, as required by the commission. The election becomes effective on the date the self-employed person files the notice. As a condition of election, the self-employed person must agree to supply any information concerning income that the commission deems necessary.
385	385
386	386	B. A self-employed person who has elected coverage may withdraw from coverage within thirty days after the end of the three-year period of coverage, or at such other times as the director may prescribe by rule, by filing written notice with the director. The withdrawal shall take effect at least thirty days after the self-employed person files the notice. END_STATUTE
387	387
388	388	START_STATUTE23-382.13. Family and medical leave insurance program; rules
389	389
390	390	A. The commission shall establish and administer a family and medical leave insurance program and, on or before January 1, 2025, shall pay family and medical leave insurance benefits as specified in this article.
391	391
392	392	B. The commission shall establish reasonable procedures and forms for filing claims for benefits under this article and shall specify the supporting documentation that is necessary to support a claim for benefits, including any documentation required from a health care provider for proof of a serious health condition.
393	393
394	394	C. The commission shall notify the employer within five business days after a claim is filed pursuant to this article.
395	395
396	396	D. The commission shall use information sharing and integration technology to facilitate the disclosure of relevant information or records if an individual consents to the disclosure as required under the laws of this state.
397	397
398	398	E. Information contained in the files and records pertaining to an individual under this article is confidential and not open to public inspection, other than to public employees in performing their official duties. The individual or an authorized representative of the individual may review the records or receive specific information from the records on the presentation of the individual's signed authorization.
399	399
400	400	F. The director shall adopt rules as necessary to implement this article. END_STATUTE
401	401
402	402	START_STATUTE23-382.14. Federal income tax
403	403
404	404	If the United States internal revenue service determines that family and medical leave insurance benefits under this article are subject to federal income tax, the commission must advise an individual filing a new claim for family and medical leave insurance benefits, at the time of filing such a claim, of all of the following:
405	405
406	406	1. That the United States internal revenue service has determined that benefits are subject to federal income tax.
407	407
408	408	2. That requirements exist pertaining to estimated tax payments.
409	409
410	410	3. That the individual may elect to have federal income tax deducted and withheld from the individual's payment of benefits in the amount specified in the federal internal revenue code.
411	411
412	412	4. That the individual is allowed to change a previously elected withholding status. END_STATUTE
413	413
414	414	START_STATUTE23-382.15. Family and medical leave insurance fund
415	415
416	416	A. The family and medical leave insurance fund is established consisting of contributions received pursuant to section 23-382.04 and any other monies. The commission shall administer the fund. Expenditures from the fund may be used only for the purposes of the family and medical leave insurance program, including conducting the public education campaign pursuant to section 23-382.17. Only the director or the director's designee may authorize expenditures from the fund.
417	417
418	418	B. Whenever, in the judgment of the commission, there is in the family and medical leave insurance fund an amount of monies in excess of the amount deemed by the commission to be sufficient to meet the current expenditures properly payable from the fund, the state treasurer may invest, reinvest, manage or contract for, sell or exchange investments acquired with such excess monies in the manner prescribed by the laws of this state on notice from the commission. END_STATUTE
419	419
420	420	START_STATUTE23-382.16. Annual report
421	421
422	422	Beginning September 1, 2025 and each September 1 thereafter, the commission shall submit a report to the governor, the president of the senate and the speaker of the house of representatives, and shall provide a copy of the report to the secretary of state, that includes all of the following:
423	423
424	424	1. The projected and actual program participation by category pursuant to section 23-382.01.
425	425
426	426	2. The gender of the beneficiaries.
427	427
428	428	3. The premium rates.
429	429
430	430	4. The family and medical leave insurance fund balances.
431	431
432	432	5. Outreach efforts.
433	433
434	434	6. For leave taken under section 23-382.01, paragraph 2, subdivision (b), the family members for whom leave was taken to provide care. END_STATUTE
435	435
436	436	START_STATUTE23-382.17. Public education campaign
437	437
438	438	The commission shall conduct a public education campaign to inform employees and employers regarding the availability of family and medical leave insurance benefits. Outreach information shall be available in English, Spanish and other languages spoken by more than five percent of this state's population. The commission shall use monies from the family and medical leave insurance fund established by section 23-382.15 to finance the public education campaign. END_STATUTE
439	439
440	440	START_STATUTE23-382.18. Sharing technology
441	441
442	442	The commission is encouraged to use state data collection and technology to the extent possible and to integrate the family and medical leave insurance program with existing state policies. END_STATUTE
443	443
444	444	Sec. 2. Rulemaking
445	445
446	446	All rules necessary to implement this act shall be adopted within one hundred twenty days after the effective date of this act.
447	447
448	448	Sec. 3. Severability
449	449
450	450	If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
451	451
452	452	Sec. 4. Emergency
453	453
454	454	This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.