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

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 up to four months for adoption, pregnancy, childbirth and nursing an infant. Additionally, the federal Family and Medical Leave Act entitles employees who meet certain conditions to take up to 12 months of leave for a serious health condition of their own or an immediately family member. Leave may be with or without pay at the discretion of the employer. <br /> <br /> Beginning on January 1, 2026, this bill makes family and medical leave insurance benefits payable to a covered individual who meets one of the following requirements:<br /> <br /> (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;<br /> <br /> (2) Is caring for a family member with a serious health condition;<br /> <br /> (3) Has a serious health condition that makes the covered individual unable to perform the functions of the position of employee; or<br /> <br /> (4) Because of a qualifying exigency arising out of the deployment of a family member of the covered individual.<br /> <br /> Under this bill, benefits will be payable to a person who is not currently employed, but who is a covered individual meeting one of the requirements listed in (1)-(4).<br /> <br /> The amount of benefits payable under this bill will be determined as follows:<br /> <br /> (1) The weekly benefit is 80 percent of an employee's average weekly wage up to a maximum benefit level of $1,000 (subject to annual adjustment to be 90 percent of the state average weekly wage). The minimum weekly benefit is $30.00; and<br /> <br /> (2) Family and medical leave insurance benefits are not payable for less than one day or eight consecutive hours of family and medical leave taken in one work week.<br /> <br /> This bill requires the state treasurer to determine the amount of premiums necessary to finance this bill's leave program annually. Beginning on October 1, 2024, the state treasurer is required to set the premium as a percentage of employee wages based on sound actuarial principles. Beginning on January 1, 2025, an employee must pay premiums in an amount determined by the state treasurer. This bill requires employers to collect the premium amount from each employee and remit the premium amount to the state treasurer.<br /> <br /> This bill incorporates provisions of present law that prohibit adverse employment action against an employee who takes family and medical leave. The remedies for a violation will be the same as presently provided by federal law.<br /> <br /> In order to properly administer this bill, the commissioner of labor and workforce development is authorized to exercise various powers, including promulgation of administrative rules.<br /> <br /> If time taken with wage replacement under this bill also qualifies as a reason for family and medical leave under federal law, then time paid pursuant to this bill runs concurrently with leave taken under federal law. <br /> <br /> A person who is eligible for benefits under this bill will be disqualified from family and medical leave insurance benefits for one year if the individual knowingly makes a false statement or misrepresentation regarding a material fact, or knowingly fails to report a material fact, to obtain benefits under this bill.<br /> <br /> Generally, any erroneously paid benefits must be repaid, but the commissioner is authorized to waive repayment.<br /> <br /> A self-employed person may elect coverage under this bill.<br /> <br /> This bill requires the department of labor and workforce development to:<br /> <br /> (1) Establish and administer a family and medical leave insurance program using moneys from the family and medical leave insurance fund, which this bill creates, and pay benefits as specified in this bill;<br /> <br /> (2) Establish claims procedures and forms;<br /> <br /> (3) Use information sharing and integration technology to facilitate the disclosure of relevant information or records, if the applicable person consents;<br /> <br /> (4) Advise a person filing a new claim of federal income tax liability, if applicable;<br /> <br /> (5) Beginning in 2027, annually report to the general assembly on projected and actual program participation, premium rates, fund balances, and outreach efforts; and<br /> <br /> (6) Conduct a public education campaign to inform workers and employers regarding the availability of paid family leave and medical leave.<br /> <br /> Information contained in the files and records pertaining to a person under this bill are confidential and not open to public inspection. However, a person, or an authorized representative of a person, may review the records or receive specific information from the records on the presentation of the signed authorization of the person.<br /> <br /> This bill authorizes an employee to take, at the option of the employee, family and medical leave on an intermittent leave schedule. The full text of this bill specifies requirements that will apply to intermittent leave.<br /> <br /> This bill requires employers to provide written notice concerning this bill's insurance program to employees upon hiring, and annually thereafter. <br /> <br /> For purposes of promulgating rules, this bill takes effect upon becoming a law. For all other purposes, this bill takes effect January 1, 2024.<br />