North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S480 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 480
	3	+	S D
	4	+	SENATE BILL DRS45248-LR-113D
	5	+
5	6
6	7
7	8		Short Title: NC Paid Family Leave Insurance Act. (Public)
8	9		Sponsors: Senators Batch, Meyer, and Chitlik (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S480 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45248 -LR-113D
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO ENACT THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT. 2
14	15		The General Assembly of North Carolina enacts: 3
15	16		SECTION 1. Effective January 1, 2026, the General Statutes are amended by adding 4
16	17		a new Chapter to read: 5
17	18		"Chapter 96A. 6
18	19		"Paid Family Leave Insurance Act. 7
19	20		"§ 96A-1. Short title; definitions. 8
20	21		(a) This Chapter shall be known and may be cited as the "North Carolina Paid Family 9
21	22		Leave Insurance Act." 10
22	23		(b) The following definitions apply in this Chapter: 11
23	24		(1) Application year. – The 12-month period beginning on the first day of the 12
24	25		calendar week in which an individual files an application for family and 13
25	26		medical leave insurance benefits. 14
26	27		(2) Assistant Secretary. – The Assistant Secretary of the Division of Employment 15
27	28		Security. 16
28	29		(3) Covered individual. – Any person who does all of the following: 17
29	30		a. Meets the monetary eligibility criteria set forth in G.S. 96-14.1(b) or 18
30	31		is self-employed, elects coverage, and meets the requirements of 19
31	32		G.S. 96A-13. 20
32	33		b. Meets the administrative requirements outlined in this Chapter and in 21
33	34		the rules adopted under this Chapter. 22
34	35		c. Submits an application. 23
35	36		(4) Covered service member. – Either: 24
36	37		a. A member of the Armed Forces, including a member of the National 25
37	38		Guard or Reserves, who is (i) undergoing medical treatment, 26
38	39		recuperation, or therapy, (ii) otherwise in outpatient status, or (iii) is 27
39	40		otherwise on the temporary disability retired list for a serious injury or 28
40	41		illness that was incurred by the member in the line of duty on active 29
41	42		duty in the Armed Forces or a serious injury or illness that existed 30
42	43		before the beginning of the member's active duty and was aggravated 31
43	44		by service in the line of duty on active duty in the Armed Forces; or 32
44	45		b. A former member of the Armed Forces, including a former member of 33
45	46		the National Guard or Reserves, who is undergoing medical treatment, 34
46	47		recuperation, or therapy for a serious injury or illness that was incurred 35
47		-	by the member in the line of duty on active duty in the Armed Forces 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 480-First Edition
	48	+	by the member in the line of duty on active duty in the Armed Forces 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 480
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS45248-LR-113D
49	54		or a serious injury or illness that existed before the beginning of the 1
50	55		member's active duty and was aggravated by service in the line of duty 2
51	56		on active duty in the Armed Forces and manifested before or after the 3
52	57		member was discharged or released from service. 4
53	58		(5) Division. – The Division of Employment Security of the Department of 5
54	59		Commerce. 6
55	60		(6) Employee. – Any individual employed by an employer. 7
56	61		(7) Employer. – Any person acting directly or indirectly in the interest of an 8
57	62		employer in relation to an employee. As used in this subdivision, "person" 9
58	63		means an individual, partnership, association, corporation, business trust, 10
59	64		legal representative, or any organized group of persons. For the purposes of 11
60	65		this Chapter, it also means the State of North Carolina, any city, town, county, 12
61	66		municipality, or any State or local agency or instrumentality of government. 13
62	67		The term does not include the government of the United States and any agency 14
63	68		of the United States (including the United States Postal Service and Postal 15
64	69		Rate Commission). 16
65	70		(8) Family and medical leave insurance benefits. – The benefits provided under 17
66	71		the terms of this Chapter. 18
67	72		(9) Family member. – Any of the following: 19
68	73		a. Regardless of age, a biological, adopted, or foster child, stepchild, or 20
69	74		legal ward, a child of a domestic partner, a child to whom the employee 21
70	75		stands in loco parentis, or a person to whom the employee stood in 22
71	76		loco parentis when the person was a minor. 23
72	77		b. A biological, adoptive, or foster parent, stepparent, or legal guardian 24
73	78		of an employee or an employee's spouse or domestic partner or a 25
74	79		person who stood in loco parentis when the employee or the 26
75	80		employee's spouse or domestic partner was a minor. 27
76	81		c. A person to whom the employee is legally married under the laws of 28
77	82		any state or a domestic partner of an employee as registered under the 29
78	83		laws of any state or political subdivision. 30
79	84		d. A grandparent, grandchild, or sibling (whether a biological, foster, 31
80	85		adoptive, or step relationship) of the employee or the employee's 32
81	86		spouse or domestic partner. 33
82	87		e. Any other individual related by blood or whose close association with 34
83	88		the employee is the equivalent of a family relationship. 35
84	89		(10) Health care provider. – Any person licensed under federal or North Carolina 36
85	90		law to provide medical or emergency services, including, but not limited to, 37
86	91		doctors, nurses and emergency room personnel, or certified midwives. 38
87	92		(11) Next of kin. – As defined in section 101(17) of the Family and Medical Leave 39
88	93		Act, 29 U.S.C. § 2611(17). 40
89	94		(12) Qualifying exigency leave. – Leave based on a need arising out of a covered 41
90	95		individual's family member's active duty service or notice of an impending 42
91	96		call or order to active duty in the Armed Forces, including, but not limited to, 43
92	97		providing for the care or other needs of the military member's child or other 44
93	98		family member, making financial or legal arrangements for the military 45
94	99		member, attending counseling, attending military events or ceremonies, 46
95	100		spending time with the military member during a rest and recuperation leave 47
96	101		or following return from deployment, or making arrangements following the 48
97	102		death of the military member. 49
98	103		(13) Retaliatory personnel action. – Denial of any right guaranteed under this 50
99	104		Chapter, including, but not limited to, any threat, discharge, suspension, 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 480-First Edition~~ Page 3
	105	+	DRS45248-LR-113D Page 3
101	106		demotion, reduction of hours, any other adverse action against an employee 1
102	107		for the exercise of any right guaranteed herein, or reporting or threatening to 2
103	108		report an employee's suspected citizenship or immigration status or the 3
104	109		suspected citizenship or immigration status of a family member of the 4
105	110		employee to a federal, State, or local agency. Retaliatory personnel actions 5
106	111		shall also include interference with or punishment for in any manner 6
107	112		participating in or assisting an investigation, proceeding, or hearing under this 7
108	113		Chapter. 8
109	114		(14) Serious health condition. – An illness, injury, impairment, pregnancy, 9
110	115		recovery from childbirth, or physical or mental condition that involves 10
111	116		inpatient care in a hospital, hospice, or residential medical care facility, or 11
112	117		continuing treatment by a health care provider. 12
113	118		(15) State average weekly wage. – The average weekly insured wage as defined in 13
114	119		G.S. 96-1(b)(2). 14
115	120		"§ 96A-2. Eligibility for benefits. 15
116	121		Beginning January 1, 2027, family and medical leave insurance benefits are payable to an 16
117	122		individual who: 17
118	123		(1) Meets the definition of "covered individual" as defined by G.S. 96A-1(b)(3); 18
119	124		and 19
120	125		(2) Meets one of the following requirements: 20
121	126		a. Because of birth, adoption, or placement through foster care, is caring 21
122	127		for a new child within 12 months of the anticipated birth, adoption, or 22
123	128		placement of that child, or has a need to be absent from work before 23
124	129		an actual placement of a child in order for an adoption or foster care 24
125	130		to proceed. 25
126	131		b. Is caring for a family member with a serious health condition. 26
127	132		c. Has a serious health condition. 27
128	133		d. Is caring for a covered service member who is the covered individual's 28
129	134		next of kin or other family member. 29
130	135		e. Because of any "qualifying exigency leave" arising out of the fact that 30
131	136		the family member of the covered individual is on active duty (or has 31
132	137		been notified of an impending call or order to active duty) in the 32
133	138		Armed Forces. 33
134	139		"§ 96A-3. Duration of benefits. 34
135	140		(a) The maximum number of weeks during which family and medical leave insurance 35
136	141		benefits are payable under G.S. 96A-2(2)c. in an application year is 18 weeks. 36
137	142		(b) The maximum number of weeks during which family and medical leave insurance 37
138	143		benefits are payable under G.S. 96A-2(2)a., (2)b., or (2)e. in an application year is 12 weeks. 38
139	144		(c) The maximum number of weeks during which family and medical leave insurance 39
140	145		benefits are payable under G.S. 96A-2(2)d. in an application year is 26 weeks. 40
141	146		(d) The first payment of benefits must be made to an individual within two weeks after 41
142	147		the claim is filed, and subsequent payments must be made every two weeks thereafter. 42
143	148		"§ 96A-4. Amount of benefits. 43
144	149		(a) The amount of family and medical leave insurance benefits shall be determined as 44
145	150		follows: 45
146	151		(1) The weekly benefit shall be determined as follows: (i) the portion of the 46
147	152		covered individual's average weekly wage that is equal to or less than one 47
148	153		hundred percent (100%) of the State average weekly wage shall be replaced 48
149	154		at a rate of ninety percent (90%) and (ii) the portion of an employee's or 49
150	155		self-employed individual's average weekly wage that is more than one 50 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 480-First Edition~~
	156	+	Page 4 DRS45248-LR-113D
152	157		hundred percent (100%) of the State average weekly wage shall be replaced 1
153	158		at a rate of fifty percent (50%). 2
154	159		(2) The maximum benefit shall be one hundred percent (100%) of the statewide 3
155	160		average weekly wage. 4
156	161		(3) The minimum weekly benefit shall not be less than one hundred dollars 5
157	162		($100.00) per week except that if the covered individual's average weekly 6
158	163		wage is less than one hundred dollars ($100.00) per week, the weekly benefit 7
159	164		shall be the employee's full wage. 8
160	165		(4) For purposes of this section, a covered individual's average weekly wage shall 9
161	166		be the average weekly wage during the 12 months preceding submission of 10
162	167		the application (or the average weekly wage during the time the covered 11
163	168		individual worked, if it was less than 12 months). 12
164	169		(b) A covered individual with multiple jobs may elect whether to take leave from one job 13
165	170		or multiple jobs. 14
166	171		(c) Family and medical leave insurance benefits pursuant to G.S. 96A-2(2)c. shall be 15
167	172		reduced by the amount of benefits that a covered individual received under G.S. 96-6. During 16
168	173		any period of leave pursuant to G.S. 96A-2(2)c., family and medical leave insurance benefits 17
169	174		shall be reduced by the amount of benefits or wage replacement that a covered individual receives 18
170	175		under the Workers' Compensation Law of this State, other than for partial disability under the 19
171	176		State Workers' Compensation Law, or under other State or federal temporary or permanent 20
172	177		disability benefits law. The Assistant Secretary shall adopt regulations to establish additional 21
173	178		requirements concerning the coordination of family and medical leave insurance benefits with 22
174	179		workers' compensation benefits for partial disability under the Workers' Compensation Law of 23
175	180		this State. 24
176	181		"§ 96A-5. Contributions. 25
177	182		(a) Payroll contributions shall be authorized in order to finance the payment of benefits 26
178	183		under the family and medical leave insurance program. 27
179	184		(b) Beginning on January 1, 2026, for each employee, an employer shall remit to the Paid 28
180	185		Family and Medical Leave Fund (Fund), established under G.S. 96A-16, contributions in the 29
181	186		form and manner determined by the Division. Annually, not later than October 1, the Assistant 30
182	187		Secretary shall fix the contribution rate for the coming calendar year in the manner described in 31
183	188		this subsection. For calendar years 2026 and 2027, the Assistant Secretary shall do so based on 32
184	189		sound actuarial principles. For calendar year 2028 and thereafter, the Assistant Secretary shall 33
185	190		first certify and publish the following information: 34
186	191		(1) The total amount of family and medical leave insurance benefits paid by the 35
187	192		Division during the previous fiscal year; 36
188	193		(2) The total amount remaining in the Fund at the close of the fiscal year; 37
189	194		(3) The total amount equal to one hundred forty percent (140%) of the previous 38
190	195		fiscal year's expenditure for family and medical leave insurance benefits paid 39
191	196		and for the administration of the family and medical leave insurance program; 40
192	197		(4) The amount by which the total amount remaining in the Fund at the close of 41
193	198		the previous fiscal year is less than or greater than one hundred forty percent 42
194	199		(140%) of the previous fiscal year's expenditure for family and medical leave 43
195	200		insurance benefits paid and for the administration of the family and medical 44
196	201		leave insurance program; and 45
197	202		(5) The amount by which the contribution rate shall be adjusted to ensure that the 46
198	203		Fund shall maintain or achieve an annualized amount of not less than one 47
199	204		hundred forty percent (140%) of the previous fiscal year's expenditure for 48
200	205		family and medical leave insurance benefits paid and for the administration of 49
201	206		the family and medical leave insurance program. The contribution rate 50
202	207		adjustment, if any, made as the result of the Assistant Secretary's certification 51 General Assembly Of North Carolina Session 2025
203		-	~~Senate Bill 480-First Edition~~ Page 5
	208	+	DRS45248-LR-113D Page 5
204	209		and report under this subsection shall supersede the rate previously set forth 1
205	210		and shall become effective on January 1 of the following calendar year. 2
206	211		(c) A self-employed individual who is electing coverage under G.S. 96A-13 shall be 3
207	212		responsible for the employee's share of contributions set forth in subsection (b) of this section on 4
208	213		that individual's income from self-employment. 5
209	214		(d) An employer shall not deduct more than fifty percent (50%) of the contribution 6
210	215		required for an employee by subsection (b) of this section from that employee's wages and shall 7
211	216		remit the full contribution required under said subsection to the Fund. 8
212	217		"§ 96A-6. Reduced leave schedule. 9
213	218		(a) A covered individual shall be entitled, at the option of the covered individual, to take 10
214	219		paid family and medical leave on an intermittent or reduced leave schedule in which all of the 11
215	220		leave authorized under this Chapter is not taken sequentially. Family and medical leave insurance 12
216	221		benefits for intermittent or reduced leave schedules shall be prorated. 13
217	222		(b) The covered individual shall make a reasonable effort to schedule paid family and 14
218	223		medical leave under this section so as not to unduly disrupt the operations of the employer. The 15
219	224		covered individual shall provide the employer with prior notice of the schedule on which the 16
220	225		covered individual will take the leave, to the extent practicable. Paid family and medical leave 17
221	226		taken under this section shall not result in a reduction of the total amount of leave to which an 18
222	227		employee is entitled beyond the amount of leave actually taken. 19
223	228		(c) Nothing in this section shall be construed to entitle a covered individual to more leave 20
224	229		than required under G.S. 96A-3. 21
225	230		"§ 96A-7. Leave and employment protection. 22
226	231		(a) Any covered individual who exercises his or her right to family and medical leave 23
227	232		insurance benefits shall, upon the expiration of that leave, be entitled to be restored by the 24
228	233		employer to the position held by the covered individual when the leave commenced, or to a 25
229	234		position with equivalent seniority, status, employment benefits, pay, and other terms and 26
230	235		conditions of employment, including fringe benefits and service credits that the covered 27
231	236		individual had been entitled to at the commencement of leave. 28
232	237		(b) During any leave taken pursuant to G.S. 96A-2, the employer shall maintain any 29
233	238		health care benefits the covered individual had prior to taking such leave for the duration of the 30
234	239		leave as if the covered individual had continued in employment continuously from the date he or 31
235	240		she commenced the leave until the date the family and medical leave insurance benefits 32
236	241		terminate; provided, however, that the covered individual shall continue to pay the covered 33
237	242		individual's share of the cost of health benefits as required prior to the commencement of the 34
238	243		leave. 35
239	244		(c) Any employer who violates this section or G.S. 96A-8 shall be liable to any eligible 36
240	245		employee affected as follows: 37
241	246		(1) For damages equal to the amount of (i) any wages, salary, employment 38
242	247		benefits, or other compensation denied or lost to such employee by reason of 39
243	248		the violation, (ii) in a case in which wages, salary, employment benefits, or 40
244	249		other compensation have not been denied or lost to the employee, any actual 41
245	250		monetary losses sustained by the employee as a direct result of the violation, 42
246	251		such as the cost of providing care, up to a sum equal to 12 weeks of wages or 43
247	252		salary for the employee, (iii) the interest on the amount described in clause (i) 44
248	253		of this subdivision calculated at the prevailing rate, and (iv) an additional 45
249	254		amount as liquidated damages equal to the sum of the amount described in 46
250	255		clause (i) of this subdivision and the interest described in clause (ii) of this 47
251	256		subdivision, except that if an employer who has violated this section or 48
252	257		G.S. 96A-8 proves to the satisfaction of the court that the act or omission 49
253	258		which violated the section was in good faith and that the employer had 50
254	259		reasonable grounds for believing that the act or omission was not a violation, 51 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~Senate Bill 480-First Edition~~
	260	+	Page 6 DRS45248-LR-113D
256	261		the court may, in the discretion of the court, reduce the amount of the liability 1
257	262		to the amount and interest determined under clauses (i) and (ii) of this 2
258	263		subdivision, respectively. 3
259	264		(2) For such equitable relief as may be appropriate, including employment, 4
260	265		reinstatement, and promotion. 5
261	266		(d) An action to recover the damages or equitable relief prescribed in subsection (c) of 6
262	267		this section may be maintained against any employer (including a public agency) in any federal 7
263	268		or State court of competent jurisdiction by any one or more employees for and on behalf of the 8
264	269		employees or the employees and other employees similarly situated. 9
265	270		(e) The court in such an action shall, in addition to any judgment awarded to the plaintiff, 10
266	271		allow a reasonable attorney's fee, reasonable expert witness fees, and other costs of the action to 11
267	272		be paid by the defendant. 12
268	273		(f) Except as provided by subsection (g) of this section, an action may be brought under 13
269	274		this section not later than two years after the date of the last event constituting the alleged 14
270	275		violation for which the action is brought. 15
271	276		(g) In the case of an action brought for a willful violation of this section or G.S. 96A-8, 16
272	277		the action may be brought within three years of the date of the last event constituting the alleged 17
273	278		violation for which such action is brought. 18
274	279		"§ 96A-8. Retaliatory personnel actions prohibited. 19
275	280		(a) It shall be unlawful for an employer or any other person to interfere with, restrain, 20
276	281		deny the exercise of, or the attempt to exercise any right protected under this Chapter. 21
277	282		(b) An employer, temporary help company, employment agency, employee organization, 22
278	283		or other person shall not take retaliatory personnel action or otherwise discriminate against a 23
279	284		person because he or she exercised rights protected under this Chapter. Such rights include, but 24
280	285		are not limited to, the right to request, file for, apply for, or use benefits provided for under this 25
281	286		Chapter; to take leave from work under this Chapter; communicate to the employer or any other 26
282	287		person or entity an intent to file a claim, a complaint with the Division or courts, or an appeal; or 27
283	288		has testified or is about to testify or has assisted in any investigation, hearing, or proceeding under 28
284	289		this Chapter, at any time, including during the period in which the person receives family and 29
285	290		medical leave insurance benefits under this Chapter; inform any person about any employer's 30
286	291		alleged violation of this Chapter; and the right to inform any person of his or her rights under this 31
287	292		Chapter. 32
288	293		(c) It shall be unlawful for an employer's absence control policy to count paid family and 33
289	294		medical leave taken under this Chapter as an absence that may lead to or result in discipline, 34
290	295		discharge, demotion, suspension, or any other adverse action. 35
291	296		(d) Protections of this section shall apply to any person who mistakenly, but in good faith, 36
292	297		alleges violations of this Chapter. 37
293	298		(e) This section shall be enforced as provided in subsections (c) through (g) of 38
294	299		G.S. 96A-7. 39
295	300		"§ 96A-9. Coordination of benefits. 40
296	301		(a) Leave taken with wage replacement under this Chapter that also qualifies as leave 41
297	302		under the Family and Medical Leave Act shall run concurrently with leave taken under the 42
298	303		Family and Medical Leave Act. 43
299	304		(b) An employer may require that payment made pursuant to this Chapter be made 44
300	305		concurrently or otherwise coordinated with payment made or leave allowed under the terms of 45
301	306		disability or family care leave under a collective bargaining agreement or employer policy. The 46
302	307		employer must give employees written notice of this requirement. 47
303	308		(c) This Chapter does not diminish an employer's obligation to comply with any of the 48
304	309		following that provide more generous leave: 49
305	310		(1) A collective bargaining agreement; 50
306	311		(2) An employer policy; or 51 General Assembly Of North Carolina Session 2025
307		-	~~Senate Bill 480-First Edition~~ Page 7
	312	+	DRS45248-LR-113D Page 7
308	313		(3) Any law. 1
309	314		(d) An individual's right to leave under this Chapter may not be diminished by a collective 2
310	315		bargaining agreement entered into or renewed, or an employer policy adopted or retained, after 3
311	316		the effective date of this Chapter. Any agreement by an individual to waive his or her rights under 4
312	317		this Chapter is void as against public policy. 5
313	318		(e) Notwithstanding this subsection, under no circumstances shall an employee be 6
314	319		required to use or exhaust any accrued vacation leave, sick leave, or other paid time off prior to 7
315	320		or while receiving family and medical leave insurance under this Chapter. However, an 8
316	321		individual may choose to use any accrued vacation leave, sick leave, or other paid time off while 9
317	322		receiving family or medical leave insurance benefits under this Chapter, unless the aggregate 10
318	323		amount a covered individual would receive would exceed the covered individual's average 11
319	324		weekly earnings. Nothing in this subsection requires an employee to receive or use additional 12
320	325		paid time off as described in this section. 13
321	326		"§ 96A-10. Notice. 14
322	327		(a) Each employer shall provide written notice to each employee upon hiring and 15
323	328		annually thereafter. An employer shall also provide written notice to an employee when the 16
324	329		employee requests leave under this Chapter or when the employer acquires knowledge that an 17
325	330		employee's leave may be for a qualifying reason under G.S. 96A-2. Such notice shall include (i) 18
326	331		the employee's right to family and medical leave insurance benefits under this Chapter and the 19
327	332		terms under which it may be used, (ii) the amount of family and medical leave insurance benefits, 20
328	333		(iii) the procedure for filing a claim for benefits, (iv) the right to job protection and benefits 21
329	334		continuation under G.S. 96A-7, (v) that discrimination and retaliatory personnel actions against 22
330	335		a person for requesting, applying for, or using family and medical leave insurance benefits is 23
331	336		prohibited under G.S. 96A-8, and (vi) that the employee has a right to file a complaint for 24
332	337		violations of this Chapter. An employer shall also display and maintain a poster in a conspicuous 25
333	338		place accessible to employees at the employer's place of business that contains the information 26
334	339		required by this section in English, Spanish, and any language that is the first language spoken 27
335	340		by at least five percent (5%) of the employer's workforce, provided that such notice has been 28
336	341		provided by the Division. The Assistant Secretary may adopt regulations to establish additional 29
337	342		requirements concerning the means by which employers shall provide such notice. 30
338	343		(b) Employees shall provide notice to their employers as soon as practicable of their 31
339	344		intention to take leave under this Chapter. 32
340	345		"§ 96A-11. Enforcement. 33
341	346		(a) The Assistant Secretary shall establish a system for appeals in the case of a denial of 34
342	347		family and medical leave insurance benefits. In establishing such system, the Assistant Secretary 35
343	348		may utilize any and all procedures and appeals mechanisms established under G.S. 96-15. 36
344	349		(b) Judicial review of any decision with respect to family and medical leave insurance 37
345	350		benefits shall be permitted in a court of competent jurisdiction after a party aggrieved thereby 38
346	351		has exhausted all administrative remedies established by the Assistant Secretary. 39
347	352		(c) The Assistant Secretary shall implement procedures to ensure confidentiality of all 40
348	353		information related to any claims filed or appeals taken to the maximum extent permitted by 41
349	354		applicable laws. 42
350	355		"§ 96A-12. Erroneous payments and disqualification for benefits. 43
351	356		(a) A covered individual is disqualified from family and medical leave insurance benefits 44
352	357		for one year if the individual is determined by the Assistant Secretary to have willfully made a 45
353	358		false statement or misrepresentation regarding a material fact or willfully failed to report a 46
354	359		material fact to obtain benefits under this Chapter. 47
355	360		(b) If family and medical leave insurance benefits are paid erroneously or as a result of 48
356	361		willful misrepresentation, or if a claim for family and medical leave insurance benefits is rejected 49
357	362		after benefits are paid, the Division may seek repayment of benefits from the recipient. The 50 General Assembly Of North Carolina Session 2025
358		-	Page 8 ~~Senate Bill 480-First Edition~~
	363	+	Page 8 DRS45248-LR-113D
359	364		Assistant Secretary shall exercise his or her discretion to waive, in whole or in part, the amount 1
360	365		of any such payments where the recovery would be against equity and good conscience. 2
361	366		"§ 96A-13. Elective coverage. 3
362	367		(a) A self-employed person, including a sole proprietor, partner, or joint venturer, may 4
363	368		elect coverage under this Chapter for an initial period of not less than three years. The 5
364	369		self-employed person must file a notice of election in writing with the Assistant Secretary as 6
365	370		required by the Division. The election becomes effective on the date of filing the notice. As a 7
366	371		condition of election, the self-employed person must agree to supply any information concerning 8
367	372		income that the Division deems necessary. 9
368	373		(b) A self-employed person who has elected coverage may withdraw from coverage 10
369	374		within 30 days after the end of the three-year period of coverage, or at such other times as the 11
370	375		Assistant Secretary may prescribe by rule, by filing written notice with the Assistant Secretary, 12
371	376		such withdrawal to take effect not sooner than 30 days after filing the notice. 13
372	377		"§ 96A-14. Family and medical leave insurance program. 14
373	378		(a) The Division shall establish and administer a family and medical leave insurance 15
374	379		program and begin collecting contributions as specified in this Chapter. By January 1, 2027, the 16
375	380		Division shall start receiving claims from and paying family and medical leave insurance benefits 17
376	381		to covered individuals. 18
377	382		(b) The Division shall establish reasonable procedures and forms for filing claims for 19
378	383		benefits under this Chapter and shall specify what supporting documentation is necessary to 20
379	384		support a claim for benefits, including any documentation required from a health care provider 21
380	385		for proof of a serious health condition. 22
381	386		(c) The Division shall notify the employer within five business days of a claim being 23
382	387		filed pursuant to this Chapter. 24
383	388		(d) The Division shall use information sharing and integration technology to facilitate the 25
384	389		disclosure of relevant information or records, so long as an individual consents to the disclosure 26
385	390		as required under State law. 27
386	391		(e) Information contained in the files and records pertaining to an individual under this 28
387	392		Chapter are confidential and not open to public inspection other than to public employees in the 29
388	393		performance of their official duties. However, the individual or an authorized representative of 30
389	394		an individual may review the records or receive specific information from the records upon the 31
390	395		presentation of the individual's signed authorization. 32
391	396		(f) The Department of Commerce shall adopt rules as necessary to implement this 33
392	397		Chapter. 34
393	398		"§ 96A-15. Federal income tax. 35
394	399		If the Internal Revenue Service determines that family and medical leave insurance benefits 36
395	400		under this Chapter are subject to federal income tax, the Division must advise an individual filing 37
396	401		a new claim for family and medical leave insurance benefits, at the time of filing such claim, that 38
397	402		the Internal Revenue Service has determined that benefits are subject to federal income tax and 39
398	403		that requirements exist pertaining to estimated tax payments. 40
399	404		"§ 96A-16. Family and medical leave insurance account fund; establishment and 41
400	405		investment. 42
401	406		(a) The Paid Family and Medical Leave Fund (Fund) is created in the custody of the 43
402	407		Division. Expenditures from the Fund may be used only for the purposes of the family and 44
403	408		medical leave insurance benefits program. Only the Assistant Secretary of the Division or the 45
404	409		Assistant Secretary's designee may authorize expenditures from the Fund. 46
405	410		(b) Whenever, in the judgment of the Division, there shall be in the Fund an amount of 47
406	411		funds in excess of that amount deemed by the Division to be sufficient to meet the current 48
407	412		expenditures properly payable therefrom, the Division shall have full power to invest, reinvest, 49
408	413		manage, contract, sell, or exchange investments acquired with such excess funds in the manner 50
409	414		prescribed by North Carolina law. 51 General Assembly Of North Carolina Session 2025
410		-	~~Senate Bill 480-First Edition~~ Page 9
	415	+	DRS45248-LR-113D Page 9
411	416		"§ 96A-17. Reports. 1
412	417		Beginning January 1, 2028, the Division shall report to the General Assembly by April 1 of 2
413	418		each year on projected and actual program participation by purpose listed in G.S. 96A-2, gender 3
414	419		of beneficiary, premium rates, fund balances, outreach efforts, and, for leaves taken under 4
415	420		G.S. 96A-2, family members for whom leave was taken to provide care. The reports shall be 5
416	421		made publicly available immediately following submission to the General Assembly. 6
417	422		"§ 96A-18. Public education. 7
418	423		The Division shall conduct a public education campaign to inform workers and employers 8
419	424		regarding the availability of family and medical leave insurance benefits. Outreach information 9
420	425		shall be available in English, Spanish, French, German, Vietnamese, Chinese, Arabic, Korean, 10
421	426		Tagalog, Hindi, Gujarati, Russian, Hmong, and other languages spoken by more than five percent 11
422	427		(5%) of the State's population. 12
423	428		"§ 96A-19. Sharing technology. 13
424	429		The Division is encouraged to use State data collection and technology to the extent possible 14
425	430		and to integrate the program with existing State policies. 15
426	431		"§ 96A-20. Severability. 16
427	432		If any provision of this Chapter or its application to any person or circumstance is held 17
428	433		invalid, the remainder of the Chapter or the application of the provision to other persons or 18
429	434		circumstances is not affected." 19
430	435		SECTION 2. All rules necessary for implementation of this act shall be adopted by 20
431	436		October 1, 2025. 21
432	437		SECTION 3. Except as otherwise provided, this act is effective when it becomes 22
433	438		law. 23