LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6980 NOTE PREPARED: Jan 5, 2022 BILL NUMBER: HB 1244 BILL AMENDED: SUBJECT: Bereavement and Parental Leave. FIRST AUTHOR: Rep. Bauer M BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED XFEDERAL Summary of Legislation: Paid Bereavement and Parental Leave for Public Employees: The bill provides three days of paid leave for an employee of a state agency or a political subdivision to attend the funeral of the employee's relative or grieve the death of the employee's relative or a miscarriage experienced by the employee or the employee's spouse. This bill provides 150 hours of paid leave for a full-time employee of a state agency or a political subdivision and 75 hours of paid leave for a part-time employee of a state agency or a political subdivision upon: (1) the birth of the employee's child; (2) the birth of a child to the employee's spouse; (3) the placement of a child for adoption with the employee; or (4) the stillbirth of the employee's child. Unpaid Child Bereavement Leave: The bill also provides unpaid leave of not more than 10 working days for an employee under certain circumstances related to the death of the employee's child, a stillbirth, or a miscarriage. The bill prohibits an employer from taking an adverse employment action against an employee who exercises the rights provided by the unpaid leave requirements. It allows the Department of Labor (DOL) to collect civil penalties if an employer violates the unpaid leave requirements. It provides that an employee may bring a civil action against an employer to enforce the unpaid leave requirements. Effective Date: July 1, 2022. HB 1244 1 Explanation of State Expenditures: Summary - The bill will increase expenditures for state agencies as employers as well as for State Educational Institutions (SEIs) to provide paid parental leave and bereavement leave to public sector employees as required under the bill. The bill could also result in a minor increase in costs for state employers and SEIs who violate provisions of the bill related to unpaid child bereavement leave. In addition, enforcing requirements for unpaid child bereavement leave for employees eligible for leave under the Family and Medical Leave Act (FMLA) would increase workload for the DOL. Additional Information - Paid Bereavement and Parental Leave for Public Employees: State agencies would have increased expenditures to provide paid bereavement leave when an employee or an employee’s spouse has a miscarriage. Providing four weeks of paid leave in the event of a stillbirth would also increase state expenditures. [This bill has the potential to impact all agencies as employers, thus impacting all funds that provide operating funds to agency staff.] State agencies as employers already provide 150 hours of paid parental leave to full-time state employees and 75 hours to part-time employees under Executive Order 17-31. In addition, under current state leave policy, state employees are eligible for paid funeral leave for up to three days in the event of the death of a relative. According to the Centers for Disease Control and Prevention, about 1% of pregnancies at 20 weeks or later end with a stillbirth. Annually, approximately 24,000 babies are stillborn in the United States. Estimates of the percentage of pregnancies that end in miscarriage vary; however, it is significantly more likely for a pregnancy to end in a miscarriage in early pregnancy than in a stillbirth at or after 20 weeks. State Personnel Department: The bill would create some administrative work for the State Personnel Department to change its current standardized policies for bereavement leave and parental leave. This should be able to be implemented with current resources. State Educational Institutions (SEIs): The bill will increase expenditures for SEIs. The bill requires SEIs to change and expand their current leave policies to provide paid bereavement leave and parental leave for employees. [State Educational Institutions receive state funding through General Fund appropriations.] Employee leave policies vary at the SEIs. All SEIs currently provide at least three days of paid bereavement leave. Purdue University, Indiana University, and Ball State University all provide six weeks of paid parental leave. Ivy Tech Community College offers four weeks of paid parental leave, while the University of Southern Indiana provides ten consecutive days of paid parental leave. Vincennes University and Indiana State University do not currently provide paid parental leave; however, individuals are able to take FMLA leave for up to 12 weeks and use sick or vacation time in order to receive pay during that time off. SEI parental leave policies require the employee to have worked at the college or university for 12 months prior to using the leave, while the bill will allow individuals to take paid leave after being employed for six months. The SEI leave policies do not specifically refer to leave related to a miscarriage or a stillbirth. Unpaid Child Bereavement Leave: The bill provides 10 days of unpaid child bereavement leave for employees eligible for leave under FMLA who suffer a miscarriage, stillbirth, or the death of a child. The FMLA applies to all public employers as well as to private employers with 50 or more employees. Unpaid FMLA leave can be taken for up to 12 weeks when an employee has a baby; adopts or fosters a child; cares for a seriously ill family member; or experiences a serious health condition. HB 1244 2 The bill allows employees eligible for the unpaid child bereavement leave to bring a civil action against an employer who violates the leave requirements or who takes an adverse employment action against the employee. Employers, including the state and SEI, may be required to pay the following to an individual who prevails in a civil action: compensatory damages, back pay, court costs, and reasonable attorney’s fees. Enforcement of Unpaid Child Bereavement Leave: The bill’s requirements represent an additional workload [and/or expenditure] on the DOL outside of the department’s routine administrative functions, and existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. The bill requires the DOL to make rules, investigate complaints, and impose civil penalties if employers fail to provide unpaid child bereavement leave or take adverse action against employees who request leave under the bill. The additional funds and resources required could be supplied through existing staff and resources currently being used in another program or with new appropriations. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. Explanation of State Revenues: Civil Penalties: General Fund revenues would increase if civil penalties are collected due to employers violating the provisions related to unpaid child bereavement leave. The DOL will collect civil penalties of up to $500 for the first violation and $1,000 for the second and each subsequent violation. Court Fee Revenue: A civil costs fee of $100 would be assessed when a civil case is filed. If additional civil actions occur and court fees are collected, revenue to the state General Fund may increase. A portion of the fee revenue is deposited into the State User Fee Fund. Additional fees may be collected at the discretion of the judge and depending upon the particular type of case. Explanation of Local Expenditures: Paid Bereavement and Parental Leave for Public Employees: Local units would experience increased expenditures to provide paid bereavement and parental leave as required under the bill. Unpaid Child Bereavement Leave: Local units who violate leave requirements or take adverse employment action against an employee may be required to pay the following to an individual who prevails in a civil action: compensatory damages, back pay, court costs, and reasonable attorney’s fees. Explanation of Local Revenues: Court Fee Revenue: If additional civil actions occur and court fees are collected, local governments would receive additional revenue from both a portion of the civil costs fee and other fees that would be collected. State Agencies Affected: State Personnel Department, State Educational Institutions, Department of Labor, all agencies as employers. Local Agencies Affected: All units as employers; trial courts; city and town courts. Information Sources: Centers for the Disease Control and Prevention. Pregnancy and Infant Loss. https://www.cdc.gov/ncbddd/stillbirth/features/pregnancy-infant-loss.html State of Indiana. Executive Order 17-31. Parental Leave for State Employees. HB 1244 3 https://www.in.gov/gov/files/Executive%20Order%2017-31%20Parental%20Leave.pdf State Personnel Department. Funeral Leave. https://www.in.gov/spd/files/funeralpol.pdf State Personnel Department. New Parent Leave. https://www.in.gov/spd/policies-and-procedures/family-and-medical-leave/new-parent-leave/ U.S. Department of Labor. Family and Medical Leave (FMLA). https://www.dol.gov/general/topic/benefits-leave/fmla Fiscal Analyst: Camille Tesch, 317-232-5293. HB 1244 4