Substitute Senate Bill No. 222, Public Act No. 24-5, is a legislative act that revises the Paid Family and Medical Leave statutes, with changes effective from October 1, 2024. The bill includes amendments to definitions and provisions concerning the Paid Family and Medical Leave Insurance Authority, the program, and the trust fund. Notable changes include the addition of federally recognized tribes with a memorandum of understanding as employers, the requirement for employers to register with the authority and submit reports, and the establishment of penalties for non-compliance. The bill also removes gender-specific language, replacing "his or her" with "such employee's or self-employed individual's or sole proprietor's," and renumbers definitions due to the addition of a new definition for "municipality."

The bill sets forth the contribution rates and procedures for employees and self-employed individuals, with a maximum rate of 0.5% of their earnings, and outlines the authority's responsibility to publish financial information and adjust rates to maintain the trust fund's target balance. Employers are required to withhold contributions and may face penalties for non-payment. The bill also details compensation for covered employees, allowing up to twelve weeks of leave in a twelve-month period for specified reasons, with an additional two weeks for pregnancy-related health conditions. Compensation rates are set at 95% of base weekly earnings up to forty times the minimum wage and 60% above that, with a cap at sixty times the minimum wage. The bill includes provisions for prorated compensation, solvency adjustments, and optional income tax withholding. It also addresses eligibility for spouses working for the same employer, nonconsecutive leave hours, concurrent receipt of compensation with other benefits, and mandates a public education campaign. Penalties for false statements or misrepresentations are outlined, with the possibility of waiving repayment if it is against equity and good conscience. Notable changes include clarifications on employee status and compensation, while gender-specific language is removed, and subsections are renumbered.

The bill further addresses penalties for health care providers who willfully misrepresent information leading to compensation, with a possible penalty of 300% of the benefits paid, which can be waived if recovery is against equity and good conscience. It holds any person aiding in fraudulent claims liable for the same financial penalty as the claimant. Overpayments must be repaid according to a schedule set by the authority, with interest charges for non-compliance. The authority may seek reimbursement for overpayments plus interest, and the bill extends the reporting deadline for the authority to September 1, 2024. It allows the Governor to enter into agreements with federally recognized tribes for program participation and updates the definitions section, including the definition of "municipality."

Additionally, the bill revises statutes related to employee leave for victims of family violence or sexual assault, adding a new definition for "sexual assault" and expanding the reasons an employee may take leave. Employers may limit unpaid leave to twelve days per year and may require notice or documentation. The bill outlines confidentiality requirements for documentation and consequences for employers who violate these provisions, including potential civil action and attorney's fees. It clarifies that the bill does not prevent employers from offering additional leave, diminish rights under employment terms or collective bargaining agreements, or require paid leave beyond the employee's benefits or maximum annual entitlement. The bill was approved on May 9, 2024.

Statutes affected:
Raised Bill: 31-49e, 31-49n, 31-49r, 31-49t, 31-51kk, 31-51ss
LAB Joint Favorable Substitute: 31-49e, 31-49n, 31-49r, 31-49t, 31-51kk, 31-51ss
File No. 75: 31-49e, 31-49n, 31-49r, 31-49t, 31-51kk, 31-51ss
Public Act No. 24-5: 31-49e, 31-49n, 31-49r, 31-49t, 31-51kk, 31-51ss