This new leave program could rock the Granite state – joining over 10 states in implementing paid family and medical leave programs. There are many details to be worked out but here is what we know right now:
WHAT: New Hampshire’s “Granite State Paid Family Leave Plan” (the Plan) has a unique design in that it provides for insurance, granted or purchased, to cover leave. At the foundation of the law, the Plan provides mandatory family and medical leave insurance (FMLI) benefits to all state employees at no cost. Insurance leave can be purchased by private employers or individuals but it is not mandated. Benefits will be administered by to-be-determined commercial carrier(s).
WHEN: Paid leave benefits will be available for purchase by January 1, 2023.
WHO: Basically anyone who wants to purchase the insurance, with state employees receiving the leave for free. As a condition of contracting for this state employee benefit, the selected carrier(s) must also offer the same FMLI coverage to other public employers (e.g., contractors), private employers with more than 50 employees, and any individual employees who wish to purchase coverage at an “advantageously priced” rate. Note: participation by these groups in the Plan is completely voluntary– meaning employers can chose to opt in.
HOW:
- Employers will be able to lock in to Family Medical Leave Insurance (FMLI) at a rate derived from the state rate, and if an employer has at least 50 employees, the employer will contract with the insurance carrier directly.
- Employers with over 50 employees may also have the opportunity to elect payroll deduction and premium remittance from employees, at rates to be determined.
- Employers with fewer than 50 employees may purchase FMLI coverage through premium payments into an FMLA premium fund to the state.
- Even though this is a voluntary program, many employers may opt in – especially since there is a tax credit up to 50% of the premium paid by an employer for FMLI coverage.
BENEFIT AMOUNT: The program will provide eligible employees with 60% of their average weekly wage for up to six weeks of work per year.
LEAVES ALLOWED: Covered employees will have access to wage replacement benefits for the following reasons:
- The birth of a child or caring for a newborn child within one year of the child’s birth;
- The placement of, or care for, newly adopted or fostered children within the first year of the placement;
- Care for an employee’s spouse, child or parent with a serious health condition;
- Care for a spouse, child, parent or next of kin who is a covered service member with a serious injury or illness, or any qualifying exigency arising from out of the fact that the employee’s spouse, child or parent is a covered military member on covered active duty;
- An employee’s own serious health condition that is not related to employment, only if the employer does not offer short term disability insurance. [NOTE: This leave reason is NOT available to state government employees].
Leave for a “family member” is limited to care for a child, parent, stepparent, legal guardian, spouse, domestic partner, or grandparent.
INDIVIDUAL POOL COVERAGE:
A major difference from other PFML provisions is that individuals themselves can opt in to the program even if their employer has fewer than 50 employees, or has 50 or more employees and does not offer FMLI coverage or an equivalent benefit, theoretically allowing universal access to coverage under this program.
Coverage through an individual plan will include a 7-month waiting period before benefits are eligible, a one-week elimination period before paid benefits are given, and a 60-day annual open enrollment period. Individuals can opt in by paying up to $5 per week through the state’s soon to be launched FMLI market.
JOB PROTECTION AND LEAVE BENEFITS
If an employer has at least 50 employees and offers FMLI, then an employee who takes leave must be restored to the position they held prior to such leave, or to an equivalent position consistent with the federal FMLA. This leave entitlement can be run concurrently with federal FMLA leave, company provided leave, or leave provided under a collective bargaining agreement.
Health insurance benefits must also continue, similar to FMLA. Employees can be required to pay their share of any benefit premiums.
Employers cannot discriminate or retaliate against any employee for accessing FMLI benefits.
QUESTIONS? You bet! We will keep you updated as the ink dries and New Hampshire works through implementation details.