The "Welcome Child and Family Wellness Leave Act" establishes a comprehensive framework for family wellness leave, introducing two key funds: the Family Wellness Leave Fund and the Welcome Child Fund. The Family Wellness Leave Fund will provide eligible individuals with a percentage of their wages during various types of leave, including bereavement, medical, and safe leave. The Welcome Child Fund offers a $3,000 monthly refund for three months to new parents following the birth or adoption of a child, along with up to twelve weeks of leave. The act outlines the administration of these funds by the Workforce Solutions Department, sets eligibility criteria, and specifies the duration and limits of the leave.

To support these initiatives, the act requires contributions from employees, employers, and self-employed individuals, with specific rates to ensure fund solvency. Employers with five or more employees will also contribute based on their employees' wages, although exemptions are available for those with existing leave plans that meet or exceed the act's benefits. The bill includes provisions to protect employees from retaliation, mandates health insurance coverage during leave, and establishes appeal procedures for leave claims. Additionally, it creates an advisory committee to oversee implementation and requires the department to adopt initial rules by July 1, 2026. The act also includes a preemption clause to prevent local governments from enacting conflicting ordinances while allowing them to create their own leave policies.