Legislation Creating Paid Family Leave Insurance Fund Introduced in House of Representatives
On April 22, 2008, Rep. Stark (D-CA) introduced legislation that would create a Family and Medical Insurance Program providing twelve weeks of paid family and medical leave. The Family Leave Insurance Act of 2008 (H.R. 5873) would create a federal insurance fund established and administered by the Secretary of Labor. The fund would provide benefits for employees taking leave (1) because of a serious health condition, (2) upon the birth or adoption of a child, (3) in order to care for a family member, (4) due to any qualifying emergency arising from the fact that a spouse, child, or parent of the employee is on active military duty, or (5) in order to care for a family member who is a covered service member. Under the benefits proposal, most employees would contribute 0.2 percent of their annual earnings, and employers would match employee payments. Benefit amounts would be tiered progressively according to income level and indexed for inflation under the Social Security wage index. The bill would allow employers with an equivalent or better paid-leave plan to opt out of participating in the insurance fund.
The legislation also prohibits an employer from interference, discrimination, or retaliation concerning an employee’s exercise of rights under the act, and would give employees a corresponding private right of action. The Secretary of Labor would have investigative authority and would be authorized to bring an administrative or civil action. The bill also provides criminal penalties for knowingly submitting or helping another to submit a false certification in order to fraudulently collect benefits.
Similar legislation introduced by Sen. Dodd (D-CT) on June 21, 2007 as the Family Leave Insurance Act of 2007 (S. 1681) has been referred to the Senate Finance Committee. In addition, there are several other pending bills that would expand FMLA coverage, including the Crime Victims Employment Leave Act (H.R. 5845), Healthy Families Act of 2007 (H.R. 1542, S. 910), Family and Medical Leave Expansion Act (H.R. 1369), FMLA Amendment (H.R. 5090), and Military Family Job Protection Act (H.R. 3993, S. 1885).
