REFERENCE TITLE: family and medical leave; paid.

State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021

HB 2858

Introduced by Representatives Ter  n: Andrade, Bolding, Cano, DeGrazia, Fernandez, Friese, Hernandez A, Hernandez M, Jermaine, Meza, Pawlik, Powers Hannley, Rodriguez, Salman, Sierra, Stahl Hamilton

 

AN ACT

 

amending Title 23, chapter 2, Arizona Revised Statutes, by adding article 8.2; relating to employment practices.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section  1. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding article 8.2, to read:

ARTICLE 8.2. FAMILY AND MEDICAL LEAVE

START_STATUTE23-382. Definitions

In this article, unless the context otherwise requires:

1. "Abuse" has the same meaning prescribed in section 23-371.

2. "Application year" means the twelve-month period beginning on the first day of the calendar week in which an individual files an application for family and medical leave insurance benefits.

3. "Average weekly wage" means one-thirteenth of the covered individual's total wages for covered work paid during the quarter of the person's base period in which such total wages were highest.

4. "Base period" has the same meaning prescribed in section 23-605.

5. "Commission" means the industrial commission of Arizona.

6. "Covered individual" means any person who meets all of the following requirements:

(a) Meets one of the following:

(i) Has been paid wages for covered work during the individual's base period equal to at least one and one-half times the wages paid to the individual in the calendar quarter of the individual's base period in which the wages were highest, and the individual has been paid wages for covered work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety times the minimum wage prescribed by section 23-363 that is in effect when the individual files a claim for benefits.

(ii) Has been paid wages for covered work during at least two quarters of the individual's base period and the amount of the wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this article and the total of the individual's base-period wages is equal to or greater than the taxable limit for unemployment insurance as specified in section 23-622, subsection B, paragraph 1.

(iii) Is self-employed, elects coverage and meets the requirements of section 23-382.12.

(b) Meets the administrative requirements outlined in this article and in rules adopted pursuant to this article.

(c) Submits an application.

7. "Director" means the director of the commission.

8. "Domestic violence" has the same meaning prescribed in section 23-371.

9. "Employee" has the same meaning prescribed in section 23-362.

10. "Employer" has the same meaning prescribed in section 23-371, except that an employer also includes this state.

11. "Family and medical leave insurance benefits" means the benefits provided under this article.

12. "Family member" has the same meaning prescribed in section 23-371.

13. "Health care provider" means any person licensed under federal law or the laws of this state to provide medical or emergency services, including to doctors, nurses and emergency room personnel, or certified midwives.

14. "Qualifying exigency leave" means leave based on a need arising out of a covered individual's family member's active duty service or notice of an impending call or order to active duty in the Armed Forces, including any of the following:

(a) Providing for the care or other needs of the military member's child or other family member.

(b) Making financial or legal arrangements for the military member.

(c) Attending counseling.

(d) Attending military events or ceremonies.

(e) Spending time with the military member during a rest and recuperation leave or following return from deployment.

(f) Making arrangements following the death of the military member.

15. "Retaliatory personnel action:

(a) Means denial of any right guaranteed under this article, including either of the following:

(i) Any threat, discharge, suspension, demotion or reduction of hours or any other adverse action against an employee for the exercise of any right guaranteed in this article.

(ii) Reporting or threatening to report an employee's suspected citizenship or immigration status or the suspected citizenship or immigration status of a family member of the employee to a federal, state or local agency.

(b) Includes interference with or punishment for in any manner participating in or assisting an investigation, proceeding or hearing under this article.

16. "Safe leave" means, notwithstanding section 13-4439, absence necessary due to domestic violence, sexual violence, abuse or stalking, if the leave is to allow the covered individual to obtain for the covered individual or the covered individual's family member any of the following:

(a) Medical attention needed to recover from physical or psychological injury or disability caused by domestic violence, sexual violence, abuse or stalking.

(b) Services from a domestic violence or sexual violence program or victim services organization.

(c) Psychological or other counseling.

(d) Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking.

(e) Legal services, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from the domestic violence, sexual violence, abuse or stalking.

17. "Serious health condition" has the same meaning prescribed in section 101 of the family and medical leave act of 1993 (P.L. 103   3; 107 Stat. 6; 29 United States Code section 2611).

18. "Sexual violence" has the same meaning prescribed in section 23-371.

19. "Stalking" has the same meaning prescribed in section 23-371.

20. "State average weekly wage" means the average monthly wage, as calculated under section 23-1041, subsection E, divided by 4.5. END_STATUTE

START_STATUTE23-382.01. Eligibility for benefits

Beginning January 1, 2024, family and medical leave insurance benefits are payable to an individual who both:

1. Meets the definition of covered individual under this article.

2. Meets one of the following requirements:

(a) Because of birth, adoption or placement through foster care, is caring for a new child during the first year after the birth, adoption or placement of that child.

(b) Is caring for a family member with a serious health condition.

(c) Has a serious health condition that makes the covered individual unable to perform the functions of the position of such employee.

(d) Qualifies for qualifying exigency leave arising out of the fact that the family member of the covered individual is on active duty or has been notified of an impending call or order to active duty in the Armed Forces.

(e) Is in need of safe leave. END_STATUTE

START_STATUTE23-382.02. Duration of benefits

A. The maximum number of weeks during which family and medical leave insurance benefits are payable to a covered individual in an application year is as follows:

1. Under section 23-382.01, paragraph 2, subdivision (c), twenty-six weeks.

2. Under section 23-382.01, paragraph 2, subdivision (a), (b), (d) or (e), twenty-four weeks.

B. A covered individual is eligible for twenty-six weeks of leave under subsection A, paragraph 1 of this section and twenty-four weeks of leave under subsection A, paragraph 2 of this section in an application year.

C. The first payment of benefits must be made to a covered individual within two weeks after the claim is filed and subsequent payments must be made every two weeks thereafter. END_STATUTE

START_STATUTE23-382.03. Amount of benefits

A. The weekly amount of family and medical leave insurance benefits is determined as follows:

1. If the covered individual's average weekly wage is equal to or less than one-half of the state average weekly wage, the benefit amount is equal to ninety percent of the covered individual's average weekly wage.

2. If the covered individual's average weekly wage is greater than one-half of the state average weekly wage, the benefit amount is the sum of both of the following:

(a) Ninety percent of one-half of the state average weekly wage.

(b) Fifty percent of the difference of the covered individual's average weekly wage and one-half of the state average weekly wage.

B. Beginning January 1, 2024, the maximum weekly benefit amount calculated pursuant to subsection A of this section is not more than $1,000 per week, except that annually, not later than October 1 of each year thereafter, the commission shall adjust the maximum weekly benefit amount to be ninety percent of the state average weekly wage and the adjusted maximum weekly benefit amount shall take effect on January 1 of the year following the adjustment.

C. The minimum weekly benefit may not be less than $100 per week, except that if the covered individual's average weekly wage is less than $100 per week, the weekly benefit shall be the covered individual's full wage.

D. Family and medical leave insurance benefits are not payable for less than eight hours of family and medical leave taken in one work week.   END_STATUTE

START_STATUTE23-382.04. Contributions

A. Payroll contributions are authorized to finance the payment of benefits under the family and medical leave insurance program.

B. Beginning January 1, 2023, Payroll contributions shall be paid by employers and employees in the ratio of one to one in an amount to be determined by the commission.

C. Not later than October 1 of each year, the commission shall fix the contribution rate for the coming calendar year as follows:

1. For calendar years 2023 and 2024, the commission shall do so based on sound actuarial principles.

2. For calendar year 2023 and each calendar year thereafter, the commission shall first certify and publish all of the following information:

(a) The total amount of family and medical leave insurance benefits paid by the commission during the previous fiscal year.

(b) The total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the fiscal year.

(c) The total amount equal to one hundred forty percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.

(d) The amount by which the total amount remaining in the family and medical leave insurance fund established by section 23-382.15 at the close of the previous fiscal year is less than or greater than one hundred forty percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.

(e) The amount by which the contribution rate shall be adjusted to ensure that the family and medical leave insurance fund established by section 23-382.15 maintains or achieves an annualized amount of not less than one hundred percent of the previous fiscal year's expenditures for family and medical leave insurance benefits paid and for the administration of the family and medical leave insurance program.   The contribution rate adjustment, if any, made as the result of the commission's certification and report under this subsection shall supersede the rate previously set forth and shall become effective on January 1 of the following calendar year.

D. A self-employed individual who elects coverage under section 23-382.12 is responsible for the employee share of contributions set forth in subsection B of this section on that individual's income from self-employment. END_STATUTE

START_STATUTE23-382.05. Reduced leave schedule

A. A covered individual is entitled, at the option of the covered individual, to take paid family and medical leave on an intermittent or reduced leave schedule in which all of the leave authorized under this article is not taken sequentially. Family and medical leave insurance benefits for intermittent or reduced leave schedules shall be prorated.

B. The covered individual shall provide the employer with prior notice of the schedule on which the covered individual will be taking the leave, to the extent practicable.   Paid family and medical leave taken under this sectio