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1 S.62
2 Introduced by Senators Ram Hinsdale, Bray, Campion, Clarkson, Gulick,
3 Hardy, Harrison, Hashim, MacDonald, McCormack, Perchlik,
4 Vyhovsky, Watson, White and Wrenner
5 Referred to Committee on
6 Date:
7 Subject: Labor; employment practices; paid family and medical leave; Parental
8 and Family Leave Act; leave related to domestic and sexual violence
9 Statement of purpose of bill as introduced: This bill proposes to create the
10 Family and Medical Leave Insurance Program within the Office of the
11 Treasurer, to amend the Parental and Family Leave Act, and to provide job-
12 protected leave from employment for reasons related to domestic and sexual
13 violence.
14 An act relating to paid family and medical leave insurance
15 It is hereby enacted by the General Assembly of the State of Vermont:
16 Sec. 1. 21 V.S.A. chapter 26 is added to read:
17 CHAPTER 26. FAMILY AND MEDICAL LEAVE INSURANCE
18 § 2051. DEFINITIONS
19 As used in this chapter:
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1 (1) “Agent” means an individual who holds a valid power of attorney
2 for an employee or self-employed individual or another legal authorization to
3 act on the employee or self-employed individual’s behalf that is acceptable to
4 the Director.
5 (2) “Average weekly earnings” means the sum of a qualified
6 individual’s wages, if any, upon which contributions have been paid pursuant
7 to section 2054 of this chapter during the individual’s two highest-earning
8 quarters plus the qualified individual’s self-employment income, if any, upon
9 which contributions have been paid pursuant to section 2054 of this chapter
10 during the individual’s two highest-earning quarters divided by 26.
11 (3) “Benefits” means Family and Medical Leave Insurance benefits
12 provided pursuant to this chapter.
13 (4) “Director” means the Director of the Division of Family and Medical
14 Leave.
15 (5) “Division” means the Division of Family and Medical Leave in the
16 Office of the Treasurer.
17 (6) “Domestic partner” has the same meaning as in 17 V.S.A. § 2414.
18 (7) “Domestic violence” has the same meaning as in 15 V.S.A. § 1151.
19 (8) “Employee” means an individual who receives payments with
20 respect to services performed for an employer from which the employer is
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1 required to withhold Vermont income tax pursuant to 32 V.S.A. chapter 151,
2 subchapter 4.
3 (9) “Employer” means a person who employs one or more employees.
4 (10) “Enrolled self-employed individual” means a self-employed
5 individual who has obtained coverage under the Program pursuant to section
6 2059 of this chapter.
7 (11) “Family and medical leave” means a leave of absence from
8 employment or from self-employment by a qualified individual for:
9 (A) the qualified individual’s own serious illness or injury;
10 (B) a serious illness or injury of the qualified individual’s family
11 member;
12 (C) the qualified individual’s pregnancy;
13 (D) the birth of the qualified individual’s child;
14 (E) the initial placement of a child 18 years of age or younger with
15 the qualified individual for the purpose of adoption or foster care; or
16 (F) a qualifying exigency arising out of a qualified individual’s
17 family member’s active duty service in the U.S. Armed Forces or notice of an
18 impending call or order to active duty in the U.S. Armed Forces.
19 (12) “Family member” means:
20 (A) regardless of age, a qualified individual’s biological, adopted, or
21 foster child; a qualified individual’s stepchild or legal ward; a child of the VT LEG #365093 v.2
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1 qualified individual’s spouse or civil union or domestic partner; a child to
2 whom the qualified individual stands in loco parentis; or an individual to
3 whom the qualified individual stood in loco parentis when the individual was
4 under 18 years of age;
5 (B)(i) a parent of a qualified individual or qualified individual’s
6 spouse or civil union or domestic partner, regardless of whether the
7 relationship to the qualified individual or qualified individual’s spouse or civil
8 union or domestic partner is a biological, foster, adoptive, or step relationship;
9 (ii) a legal guardian of a qualified individual or qualified
10 individual’s spouse or civil union or domestic partner; or
11 (iii) a person who stood in loco parentis when the qualified
12 individual or qualified individual’s spouse or civil union or domestic partner
13 was under 18 years of age;
14 (C) a person to whom the qualified individual is legally married
15 under the laws of any state or a civil union or domestic partner of a qualified
16 individual;
17 (D) a grandparent, grandchild, or sibling of the qualified individual or
18 qualified individual’s spouse or civil union or domestic partner, regardless of
19 whether the relationship to the qualified individual or the qualified individual’s
20 spouse or civil union or domestic partner is a biological, foster, adoptive, or
21 step relationship; or VT LEG #365093 v.2
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1 (E) as shown by the qualified individual, any other individual with
2 whom the qualified individual has a significant personal bond that is or is like
3 a family relationship, regardless of biological or legal relationship.
4 (13) “Highest earning quarters” means the two calendar quarters of the
5 last four completed calendar quarters when an individual earned the highest
6 combined total of wages upon which contributions were paid pursuant to
7 section 2054 of this chapter and self-employment income upon which
8 contributions were paid pursuant to section 2054 of this chapter.
9 (14) “In loco parentis” means a child for whom an individual has day-
10 to-day responsibilities to care for and financially support or, in the case of a
11 qualified individual or the qualified individual’s spouse or civil union or
12 domestic partner, an individual who had such responsibility for the qualified
13 individual or the spouse or civil union or domestic partner when the qualified
14 individual or the spouse or civil union or domestic partner was under 18 years
15 of age.
16 (15) “Program” means the Family and Medical Leave Insurance
17 Program created pursuant to this chapter.
18 (16) “Qualified individual” means an employee or enrolled self-
19 employed individual who:
20 (A) satisfies the eligibility requirements established pursuant to
21 section 2056 of this chapter; and VT LEG #365093 v.2
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1 (B) has submitted an application and all necessary documentation of
2 the need for the leave pursuant to section 2057 of this chapter.
3 (17) “Qualifying exigency” means a qualifying exigency related to
4 active duty service in the U.S. Armed Forces that is identified pursuant to 29
5 C.F.R. § 825.126.
6 (18) “Safe leave” means a leave of absence from employment or self-
7 employment by a qualified individual because:
8 (A) the qualified individual or the qualified individual’s family
9 member is a victim of domestic violence, sexual assault, or stalking;
10 (B) the qualified individual is using the leave for one of the following
11 reasons related to the domestic violence, sexual assault, or stalking:
12 (i) to seek or obtain medical care, counseling, or social or legal
13 services, either for themselves or for a family member;
14 (ii) to recover from injuries;
15 (iii) to participate in safety planning, either for themselves or for a
16 family member;
17 (iv) to relocate or secure safe housing, either for themselves or for
18 a family member; or
19 (v) to meet with a State’s Attorney or law enforcement officer;
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1 (C) the qualified individual is not the alleged perpetrator of the
2 domestic violence, sexual assault, or stalking.
3 (19) “Self-employed individual” means a sole proprietor or partner
4 owner of an unincorporated business, the sole member of an LLC that does not
5 have any employees other than the member, or the sole shareholder of a
6 corporation that does not have any employees other than the shareholder.
7 (20) “Self-employment income” has the same meaning as in 26 U.S.C.
8 § 1402.
9 (21) “Serious illness or injury” means an accident, disease, injury, or
10 physical or mental condition that:
11 (A) poses imminent danger of death;
12 (B) requires inpatient care in a hospital; or
13 (C) requires continuing in-home care under the direction of a
14 physician.
15 (22) “Sexual assault” has the same meaning as in 15 V.S.A. § 1151.
16 (23) “Stalking” has the same meaning as in 15 V.S.A. § 1151.
17 (24) “U.S. Armed Forces” means:
18 (A) the U.S. Army, Navy, Air Force, Marine Corps, Space Force, and
19 Coast Guard;
20 (B) a reserve component of the U.S. Army, Navy, Air Force, Marine
21 Corps, Space Force, and Coast Guard; or VT LEG #365093 v.2
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1 (C) the National Guard of any state.
2 (25) “Wages” means payments that are included in the definition of
3 wages set forth in 26 U.S.C. § 3401.
4 § 2052. DIVISION OF FAMILY AND MEDICAL LEAVE; DIRECTOR
5 (a) The Division of Family and Medical Leave is established in the Office
6 of the Treasurer to administer the Family and Medical Leave Insurance
7 Program established pursuant to this chapter.
8 (b)(1) The Treasurer shall appoint a director of the Division. The Director
9 shall be a full-time State employee and exempt from the classified system and
10 shall serve at the pleasure of the Treasurer.
11 (2) The Director shall be responsible for:
12 (A) the operation and supervision of the Division of Family and
13 Medical Leave;
14 (B) the implementation of this chapter and any rules adopted
15 pursuant to section 2064 of this chapter; and
16 (C) employing staff as necessary to implement and carry out the
17 provisions of this chapter.
18 § 2053. FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM;
19 SPECIAL FUND
20 (a) The Family and Medical Leave Insurance Program is established within
21 the Division of Family and Medical Leave for the provision of Family and VT LEG #365093 v.2
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1 Medical Leave Insurance benefits to qualified individuals pursuant to the
2 provisions of this chapter.
3 (b) The Family and Medical Leave Insurance Special Fund is created
4 pursuant to 32 V.S.A. chapter 7, subchapter 5. The Fund may be expended by
5 the Director and the Commissioner of Taxes for the administration of the
6 Family and Medical Leave Insurance Program, for the payment of benefits
7 provided pursuant to the provisions of this chapter, and for necessary costs
8 incurred in administering the Fund. All interest earned on Fund balances shall
9 be credited to the Fund.
10 (c) The Fund shall consist of:
11 (1) contributions collected pursuant to section 2054 of this chapter;
12 (2) amounts recovered or collected pursuant to sections 2062 and 2063
13 of this chapter; and
14 (3) any amounts appropriated to the Fund.
15 (d) The Director may seek and accept gifts, donations, and grants from any
16 source, public or private, to be dedicated for deposit into the Fund.
17 § 2054. CONTRIBUTIONS; RATE; COLLECTION
18 (a) The following contribution rates shall apply to employees and enrolled
19 self-employed individuals.
20 (1)(A) Contributions for employees shall equal 0.5 percent of each
21 employee’s covered wages.
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1 (B) Employers shall be responsible for one-half of the contribution
2 amount and employees shall be responsible for the remaining half.
3 (C) Employers shall deduct and withhold from each employee’s
4 covered wages the employee’s portion of the contributions due.
5 (D) In lieu of deducting and withholding the full amount of the
6 employee’s portion of the contribution, an employer may elect to pay some or
7 all of the employee’s portion of the contributions.
8 (E) As used in this subdivision (1), the term “covered wages” means
9 all wages paid to an employee by an employer up to an amount equal to the
10 maximum Social Security Contribution and Benefit Base.
11 (2)(A) Contributions from enrolled self-employed individuals shall
12 equal 0.5 percent of each enrolled self-employed individual’s covered work
13 income.
14 (B) As used in this subdivision (2), the term “covered work income”
15 means self-employment work income earned by an enrolled self-employed
16 individual up to an amount equal to the maximum Social Security Contribution
17 and Benefit Base.
18 (b)(1) Notwithstanding subsection (a) of this section, the General Assembly
19 shall annually establish the rate of contribution for the next fiscal year. The
20 rate shall generate contributions in an amount equal to the sum of the projected
21 amount necessary to provide benefits pursuant to this chapter during the next VT LEG #365093 v.2
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1 fiscal year plus a reserve equal to at least nine months of the projected benefit
2 payments for the next fiscal year plus the projected cost to administer the
3 Program during the next fiscal year minus any balance in the Fund from the
4 prior fiscal year.
5 (2) On or before February 1 of each year, the Director shall report to the
6 General Assembly the rate necessary to generate contributions in an amount
7 equal to the sum of the projected amount necessary to provide benefits
8 pursuant to this chapter during the next fiscal year plus a reserve equal to at
9 least nine months of the projected benefit payments for the next fiscal year plus
10 the projected cost to administer the Program during the next fiscal year minus
11 any balance in the Fund from the prior fiscal year.
12 (c)(1) The Commissioner of Taxes shall collect the contributions required
13 pursuant to this section and shall deposit them into the Fund.
14 (2) Employers shall withhold contributions pursuant to subdivision
15 (a)(1) of this section from wages that employers pay to employees as if the
16 contributions were Vermont income tax subject to the withholding
17 requirements of 32 V.S.A. chapter 151, subchapter 4. The administrative and
18 enforcement provisions of 32 V.S.A. chapter 151 shall apply to the
19 contribution and withholding requirements under this section as if the
20 contributions due pursuant to subdivision (a)(1) of this section were Vermont
21 income tax.
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1 (3) Enrolled self-employed individuals shall make installment payments
2 of estimated contributions pursuant to subdivision (a)(2) of this section from
3 the enrolled self-employed individual’s covered work income as if the
4 contributions were Vermont income tax subject to the estimated payment
5 requirements of 32 V.S.A. chapter 151, subchapter 5. The administrative and
6 enforcement provisions of 32 V.S.A. chapter 151 shall apply to the estimated
7 payment requirement under this section as if the contributions due pursuant to
8 subdivision (a)(2) of this section were Vermont income tax.
9 (d) An employer with an approved private plan pursuant to section 2060 of
10 this chapte