Amends TCA Title 4, Chapter 21; Title 10, Chapter 7, Part 5 and Title 50.

Generally under present law, employees who have been employed by the same employer for at least 12 consecutive months as full-time employees may be absent from such employment for a period not to exceed four months for adoption, pregnancy, childbirth and nursing an infant. Present law provides that the leave may be with or without pay at the discretion of the employer; and the leave does not affect the employees' right to receive vacation time, sick leave, bonuses, advancement, seniority, length of service credit, benefits, plans or programs for which the employees were eligible at the date of their leave, and any other benefits or rights of their employment incident to the employees' employment position; however, the employer is not required to provide for the cost of any benefits, plans or programs during the period of such leave, unless such employer so provides for all employees on leaves of absence. This bill adds, notwithstanding the above provisions, that family and medical leave insurance benefits are payable to a covered individual who meets one of the following requirements: (1) 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; (2) Is caring for a family member with a serious health condition; (3) Has a serious health condition that makes the covered individual unable to perform the functions of the position of employee; or (4) Has a qualifying exigency, which is a need arising out of the deployment of a family member of the covered individual. This bill specifies that benefits will be payable to an individual who is not currently employed, but who is a covered individual meeting one of the requirements listed above in (1)-(4). The maximum number of weeks during which family and medical leave insurance benefits will be payable in an application year is 12 weeks. Under this bill, the weekly benefit will be 2/3 of an employee's state average weekly wage up to a maximum benefit level of $850. Annually, not later than October 1 of each year thereafter, the department of labor and workforce development will adjust the maximum weekly benefit amount to be 90 percent of the state average weekly wage and the adjusted maximum weekly benefit amount will take effect on January 1 of the year following the adjustment. If an employee's state average weekly wage is less than $30.00, the weekly benefit must be $30.00. Family and medical leave insurance benefits will not be payable for less than one day or eight consecutive hours of family and medical leave taken in one work week. This bill creates in the state treasury the family and medical leave insurance fund. Moneys in the fund may be used only to pay benefits under and to administer the family and medical leave insurance program pursuant to this bill. The state treasurer is responsible for determining the amount of premiums necessary to finance the family and medical leave insurance program. Premiums must be paid by employees in an amount to be determined by the state treasurer. Employers will collect the premium amount from employees and remit the premium amount to the state treasurer, who will transfer the premiums to the state treasury for deposit in the fund. This bill specifies that a covered individual who exercises the individual's right to family and medical leave insurance benefits is entitled, upon the expiration of that leave, to be restored by the employer to the position held by the covered individual when the leave commenced, or to a position with equivalent seniority, status, employment benefits, pay, and other terms and conditions of employment, including fringe benefits and service credits that the covered individual had been entitled to at the commencement of leave. During any leave taken pursuant to this bill, the employer must maintain healthcare benefits the covered individual had prior to taking the leave for the duration of the leave as if the covered individual had remained in employment continuously from the date the individual commenced the leave until the date the family and medical leave insurance benefits terminate. However, the covered individual must continue to pay the covered individual's share of the cost of healthcare benefits as required prior to the commencement of the leave. This bill will be enforced by the commissioner of labor and workforce development pursuant to the present law provisions governing remedies for sex discrimination, which generally include unpaid wages, including double or triple the amount of unpaid wages as liquidated damages for second or subsequent violations. This bill sets out in detail what constitutes unlawful action under this bill. Under this bill, if time taken with wage replacement also qualifies as a reason for leave under the federal Family and Medical Leave Act, then time paid for pursuant to this bill must run concurrently with leave taken under the FMLA. This bill specifies that an individual's right to leave under this bill may not be diminished by a collective bargaining agreement entered into, amended, or renewed, or an employer policy adopted or retained, on or after January 20, 2021. This bill authorizes an employer to require that payment made pursuant to this bill be made concurrently or otherwise coordinated with payment or leave allowed under the disability or family care leave under a collective bargaining agreement. This bill requires an employer to give an employee written notice of family and medical leave benefits, as well as any requirement related to leave payments under collective bargaining, when the employee requests leave under this bill or when the employer acquires knowledge that an employee's leave may be for a qualifying reason described above. This bill sets out in detail the process for submitting claims, approving or denying claims, appealing denials, recovering erroneously paid benefits, and other administrative and procedural requirements. Under this bill, a covered individual will be disqualified from family and medical leave insurance benefits for one year if the individual knowingly made a false statement or misrepresentation regarding a material fact, or knowingly failed to report a material fact, to obtain benefits under this bill. A self-employed person, including a sole proprietor, partner, or joint venturer, may elect coverage under this bill for an initial period of not less than three years or a subsequent period of not less than one year immediately following another period of coverage. This bill requires the department to establish and administer a family and medical leave insurance program and pay family and medical leave insurance benefits as specified in this bill. This bill specifies that if the IRS determines that family and medical leave insurance benefits under this bill are subject to federal income tax, the department must advise an individual filing a new claim for family and medical leave insurance benefits, at the time the individual files the claim, that: the internal revenue service has determined that benefits are subject to federal income tax; and requirements exist pertaining to estimated tax payments. This bill creates the family and medical leave insurance account in the custody of the state treasurer. Expenditures from the account may be used only for the purposes of the family and medical leave insurance program. Only the commissioner may authorize expenditures from the account. Under this bill, an employee may, at the option of the employee, take family and medical leave on an intermittent leave schedule. This bill sets out the requirements for intermittent leave. This bill requires, beginning no later than September 1, 2022, the department to report to the general assembly by September 1 of each subsequent year on projected and actual program participation, premium rates, fund balances, and outreach efforts. This bill also requires the department to conduct a public education campaign to inform workers and employers regarding the availability of paid family leave and medical leave. The department may use a portion of the funds collected for the paid family and medical leave insurance program in a given year to pay for the public education campaign. For purposes of promulgating rules, this bill will take effect upon becoming a law. For all other purposes, this bill will take effect January 1, 2022.