The bill amends the Early Childhood Education and Care Fund to include appropriations for parental leave compensation and establishes the Paid Parental Leave Act, which creates a Supplemental Paid Parental Leave Fund. This fund will provide eligible employees and self-employed individuals with a percentage of their wages to support bonding with a new child. The program, administered by the Workforce Solutions Department, will have specific eligibility criteria, limitations on the duration of paid parental leave, and will begin on January 1, 2028. Funding will come from employee contributions assessed at one-half percent of wages for employees and net income for self-employed individuals.

Additionally, the bill emphasizes employee confidentiality and ensures that taking parental leave does not affect other leave entitlements. Employees will be allowed to take up to nine weeks of combined parental leave, with requirements for notifying employers and providing documentation. Employers are prohibited from reducing other leave entitlements and must maintain health insurance coverage during the leave. The bill also establishes procedures for appealing adverse determinations related to leave applications, prohibits retaliation against employees exercising their rights, and mandates the creation of a Paid Parental Leave Implementation Advisory Committee to assist in developing rules related to the Act, with initial rules due by July 1, 2026.

Statutes affected:
introduced version: 9-29A-1