FILED SENATE
May 2, 2024
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 815
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS35351-LRf-139A
Short Title: NC Paid Family Insurance Act. (Public)
Sponsors: Senators Grafstein, Batch, and Garrett (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ENACT THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT.
3 The General Assembly of North Carolina enacts:
4 SECTION 1. Effective July 4, 2024, the General Statutes are amended by adding a
5 new Chapter to read:
6 "Chapter 96A.
7 "Paid Family Leave Insurance Act.
8 "§ 96A-1. Short title; definitions.
9 (a) This Chapter shall be known and may be cited as the "North Carolina Paid Family
10 Leave Insurance Act."
11 (b) The following definitions apply in this Chapter:
12 (1) Application year. – The 12-month period beginning on the first day of the
13 calendar week in which an individual files an application for family and
14 medical leave insurance benefits.
15 (2) Assistant Secretary. – The Assistant Secretary of the Division of Employment
16 Security.
17 (3) Covered individual. – Any person who does all of the following:
18 a. Meets the monetary eligibility criteria set forth in G.S. 96-14.1(b) or
19 is self-employed, elects coverage, and meets the requirements of
20 G.S. 96A-13.
21 b. Meets the administrative requirements outlined in this Chapter and in
22 the rules adopted under this Chapter.
23 c. Submits an application.
24 (4) Covered service member. – Either:
25 a. A member of the Armed Forces, including a member of the National
26 Guard or Reserves, who is (i) undergoing medical treatment,
27 recuperation, or therapy, (ii) otherwise in outpatient status, or (iii)
28 otherwise on the temporary disability retired list for a serious injury or
29 illness that was incurred by the member in the line of duty on active
30 duty in the Armed Forces or a serious injury or illness that existed
31 before the beginning of the member's active duty and was aggravated
32 by service in the line of duty on active duty in the Armed Forces; or
33 b. A former member of the Armed Forces, including a former member of
34 the National Guard or Reserves, who is undergoing medical treatment,
35 recuperation, or therapy for a serious injury or illness that was incurred
36 by the member in the line of duty on active duty in the Armed Forces
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1 or a serious injury or illness that existed before the beginning of the
2 member's active duty and was aggravated by service in the line of duty
3 on active duty in the Armed Forces and manifested before or after the
4 member was discharged or released from service.
5 (5) Division. – The Division of Employment Security of the Department of
6 Commerce.
7 (6) Employee. – Any individual employed by an employer.
8 (7) Employer. – Any person acting directly or indirectly in the interest of an
9 employer in relation to an employee. As used in this subdivision, "person"
10 means an individual, partnership, association, corporation, business trust,
11 legal representative, or any organized group of persons. For the purposes of
12 this Chapter, it also means the State of North Carolina, any city, town, county,
13 municipality, or any State or local agency or instrumentality of government.
14 The term does not include the government of the United States and any agency
15 of the United States (including the United States Postal Service and Postal
16 Rate Commission).
17 (8) Family and medical leave insurance benefits. – The benefits provided under
18 the terms of this Chapter.
19 (9) Family member. – Any of the following:
20 a. Regardless of age, a biological, adopted, or foster child, stepchild, or
21 legal ward, a child of a domestic partner, a child to whom the employee
22 stands in loco parentis, or a person to whom the employee stood in
23 loco parentis when the person was a minor.
24 b. A biological, adoptive, or foster parent, stepparent, or legal guardian
25 of an employee or an employee's spouse or domestic partner or a
26 person who stood in loco parentis when the employee or the
27 employee's spouse or domestic partner was a minor.
28 c. A person to whom the employee is legally married under the laws of
29 any state or a domestic partner of an employee as registered under the
30 laws of any state or political subdivision.
31 d. A grandparent, grandchild, or sibling (whether a biological, foster,
32 adoptive, or step relationship) of the employee or the employee's
33 spouse or domestic partner.
34 e. Any other individual related by blood or whose close association with
35 the employee is the equivalent of a family relationship.
36 (10) Health care provider. – Any person licensed under federal or North Carolina
37 law to provide medical or emergency services, including, but not limited to,
38 doctors, nurses and emergency room personnel, or certified midwives.
39 (11) Next of kin. – As defined in section 101(17) of the Family and Medical Leave
40 Act, 29 U.S.C. § 2611(17).
41 (12) Qualifying exigency leave. – Leave based on a need arising out of a covered
42 individual's family member's active duty service or notice of an impending
43 call or order to active duty in the Armed Forces, including, but not limited to,
44 providing for the care or other needs of the military member's child or other
45 family member, making financial or legal arrangements for the military
46 member, attending counseling, attending military events or ceremonies,
47 spending time with the military member during a rest and recuperation leave
48 or following return from deployment, or making arrangements following the
49 death of the military member.
50 (13) Retaliatory personnel action. – Denial of any right guaranteed under this
51 Chapter, including, but not limited to, any threat, discharge, suspension,
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1 demotion, reduction of hours, any other adverse action against an employee
2 for the exercise of any right guaranteed herein, or reporting or threatening to
3 report an employee's suspected citizenship or immigration status or the
4 suspected citizenship or immigration status of a family member of the
5 employee to a federal, State, or local agency. Retaliatory personnel actions
6 shall also include interference with or punishment for in any manner
7 participating in or assisting an investigation, proceeding, or hearing under this
8 Chapter.
9 (14) Serious health condition. – An illness, injury, impairment, pregnancy,
10 recovery from childbirth, or physical or mental condition that involves
11 inpatient care in a hospital, hospice, or residential medical care facility, or
12 continuing treatment by a health care provider.
13 (15) State average weekly wage. – The average weekly insured wage as defined in
14 G.S. 96-1(b)(2).
15 "§ 96A-2. Eligibility for benefits.
16 Beginning July 4, 2024, family and medical leave insurance benefits are payable to an
17 individual who:
18 (1) Meets the definition of "covered individual" as defined by G.S. 96A-1(b)(3);
19 and
20 (2) Meets one of the following requirements:
21 a. Because of birth, adoption, or placement through foster care, is caring
22 for a new child during the first year after the birth, adoption, or
23 placement of that child;
24 b. Is caring for a family member with a serious health condition;
25 c. Has a serious health condition;
26 d. Is caring for a covered service member who is the covered individual's
27 next of kin or other family member; or
28 e. Because of any "qualifying exigency leave" arising out of the fact that
29 the family member of the covered individual is on active duty (or has
30 been notified of an impending call or order to active duty) in the
31 Armed Forces.
32 "§ 96A-3. Duration of benefits.
33 (a) An eligible covered individual is entitled to a maximum of:
34 (1) Twelve weeks of family and medical leave insurance benefits in any 12-month
35 period for qualifying exigency leave;
36 (2) Twelve weeks of family and medical leave insurance benefits in any 12-month
37 period for the birth, adoption, or placement through foster care of a new child;
38 or
39 (3) Twenty-six weeks of family and medical leave insurance benefits during a
40 single 12-month period to care for a family member with a serious health
41 condition or to recover from the covered individual's own serious health
42 condition.
43 (b) In the case of leave taken to care for a covered service member, an eligible covered
44 individual is entitled to a total of 26 weeks of family and medical leave insurance benefits in any
45 12-month period.
46 (c) The amount of family and medical leave insurance benefits payable to a covered
47 individual for family and medical leave is limited to a total of 12 weeks of family and medical
48 leave insurance benefits in any 12-month period.
49 (d) Family and medical leave insurance benefits are not payable for intermittent leave or
50 leave on a reduced leave schedule taken for the birth, adoption, or placement through foster care
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1 of a new child or to care for the covered individual's family member with a serious health
2 condition.
3 "§ 96A-4. Amount of benefits.
4 (a) The weekly family and medical leave insurance benefit amount is equal to the covered
5 individual's average weekly wage divided by the State average weekly wage, rounded to the
6 nearest one-hundredth of a percent.
7 (b) The minimum weekly family and medical leave insurance benefit amount is an
8 amount equal to twenty percent (20%) of the State average weekly wage.
9 (c) The maximum weekly family and medical leave insurance benefit amount is an
10 amount equal to one hundred twenty percent (120%) of the State average weekly wage.
11 (d) The weekly family and medical leave insurance benefit amount shall be reduced by
12 the amount of any wages or wage replacement received by the covered individual from any other
13 source during the same period for which family and medical leave insurance benefits are payable.
14 "§ 96A-5. Contributions.
15 (a) Employers shall remit contributions to the Paid Family and Medical Leave Fund
16 established pursuant to G.S. 96A-16 to cover the costs of family and medical leave insurance
17 benefits.
18 (b) Employer and employee contributions to the Paid Family and Medical Leave Fund
19 shall be equal to the contribution rate established by the Division to finance the family and
20 medical leave insurance program.
21 (c) Employer and employee contributions shall be withheld from the wages of each
22 covered individual in accordance with rules adopted by the Division.
23 (d) The contribution rate established by the Division under this section shall be expressed
24 as a percentage of the wages of each covered individual and shall not exceed the maximum
25 contribution rate established by the Division.
26 (e) Contributions shall be due and payable quarterly on the last day of the month
27 following the close of the calendar quarter.
28 (f) Each employer shall submit a report to the Division on a quarterly basis that includes
29 a report of the wages paid to each covered individual during the preceding quarter, the amount
30 of contributions withheld from the wages of each covered individual, and any other information
31 required by the Division.
32 (g) The Division may require employers to submit reports and payments electronically.
33 (h) All employer and employee contributions collected under this section shall be paid
34 into the Paid Family and Medical Leave Fund on a quarterly basis.
35 (i) The Division shall establish procedures for the administration of employer and
36 employee contributions, including procedures for the collection, reporting, and remittance of
37 contributions.
38 (j) Contributions to the Paid Family and Medical Leave Fund are due and payable to the
39 Division and constitute a debt owed by the employer to the Division.
40 "§ 96A-6. Reduced leave schedule.
41 (a) A covered individual may take family and medical leave on an intermittent or reduced
42 leave schedule.
43 (b) A covered individual taking family and medical leave on an intermittent or reduced
44 leave schedule shall make a reasonable effort to schedule the leave so as not to unduly disrupt
45 the operations of the employer.
46 "§ 96A-7. Leave and employment protection.
47 (a) Except as otherwise provided in this Chapter, any eligible covered individual who
48 takes family and medical leave in accordance with this Chapter shall be entitled, on return from
49 such leave:
50 (1) To be restored by the employer to the position of employment held by the
51 eligible covered individual when the leave commenced; or
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1 (2) To be restored to an equivalent position with equivalent employment benefits,
2 pay, and other terms and conditions of employment.
3 (b) An employer is not required to restore the employment benefits or pay that accrued
4 prior to the date on which the leave commenced.
5 (c) Except as otherwise provided in this Chapter, an employer shall maintain health care
6 benefits for an eligible covered individual on family and medical leave on the same terms as if
7 the eligible covered individual had continued to work instead of taking family and medical leave.
8 "§ 96A-8. Retaliatory personnel actions prohibited.
9 (a) Except as otherwise provided in this Chapter, any eligible covered individual who
10 takes family and medical leave in accordance with this Chapter shall be entitled, on return from
11 such leave:
12 (1) To be restored by the employer to the position of employment held by the
13 eligible covered individual when the leave commenced; or
14 (2) To be restored to an equivalent position with equivalent employment benefits,
15 pay, and other terms and conditions of employment.
16 (b) An employer is not required to restore the employment benefits or pay that accrued
17 prior to the date on which the leave commenced.
18 (c) Except as otherwise provided in this Chapter, an employer shall maintain health care
19 benefits for an eligible covered individual on family and medical leave on the same terms as if
20 the eligible covered individual had continued to work instead of taking family and medical leave.
21 "§ 96A-9. Coordination of benefits.
22 (a)