The bill establishes the Alaska Paid Family Leave Plan, which mandates the procurement of a family leave insurance plan by the commissioners of labor and workforce development and administration. This plan will provide wage replacement coverage for qualified state employees at no cost, as well as for enrolled employees of political subdivisions and private employers who choose to participate. The plan will ensure that participating employees receive 100% of their average weekly wage, up to $3,000 per week, without imposing a minimum duration for family leave. The bill also outlines the eligibility criteria for employees to receive wage replacement, which includes being enrolled for at least seven calendar days and having a specified duration of employment.

Additionally, the bill introduces a purchasing pool for employees of political subdivisions and private employers that do not offer equivalent family leave insurance benefits. It establishes a premium stabilization account to maintain affordable rates for participants in the purchasing pool. The bill also includes provisions for a family leave insurance tax credit for employers who pay for family leave insurance coverage for their employees. The transition period for implementing the family leave insurance coverage is set to begin by March 31, 2026, with full availability for state employees and other eligible employers by January 1, 2027.

Statutes affected:
SB0010A, AM SB 10, introduced 01/10/2025: 23.10.700, 23.10.790, 23.10.720, 23.10.730, 23.10.710, 39.20.305, 39.20.500, 23.10.740, 21.09.210, 23.10.750, 23.10.760, 23.40.070, 23.40.260, 23.10.770, 43.20.075, 23.10.780