Proposed legislation from NCOIL would allow for paid family leave
"Like the landmark law passed in Virginia, the NCOIL proposal will enable employers to offer paid family leave solutions that protect their workers from economic loss," says Susan Neely, president and CEO of the association.
Employers would be able to voluntarily purchase family medical leave plans for their workers under legislation proposed during the recent National Council of Insurance Legislators (NCOIL) summer meeting.
The bipartisan Paid Family Leave Insurance Model Act is sponsored by Paul Utke, a Republican state senator from Minnesota, and Deborah Ferguson, DDS, a Democratic state representative from Arkansas. Policies would pay benefits:
- After the birth of a child or adoption of a child by an employee;
- When a child is placed with an employee for foster care;
- To help an employee care for a family member who has a serious health condition; or
- When an employee’s family member in the military is on active duty or has been called to active duty status.
The proposal is similar to bipartisan legislation signed into law by Virginia Gov. Glenn Youngkin earlier this year.
“The proposal before NCOIL would address a critical challenge facing today’s workers,” says Susan Neely, president and CEO of the association. “Too many face an impossible choice between earning a paycheck and taking time to care for a loved one. Like the landmark law passed in Virginia, the NCOIL proposal will enable employers to offer paid family leave solutions that protect their workers from economic loss.”
Virginia’s HB 1156 and SB 15 established family leave as a class of insurance, with benefits to be paid in the same situations as those in Utke and Ferguson’s proposal.
“Until today, there has been no state permitting companies to offer insurance plans that cover family leave benefits,” Youngkin said when he signed the bill. “I am proud to say that Virginia is leading the way by being the first state to pass legislation like this. It’s important to find solutions that balance the needs of workers with the flexibility needs of businesses, their employees and families.”
Related: LGBTQ+ parents need paid parental leave, too
Life insurance companies already provide paid medical leave benefits through short-term disability policies to more than 47% of full-time U.S. workers. The proposed legislation would establish new laws in the states that permit companies to offer insurance plans covering family leave.
“We commend Sen. Utke and Rep. Ferguson for advancing this important proposal,” Neely says. “We look forward to its adoption by NCOIL and working for its enactment in state legislatures across the country.”
The association comprises state lawmakers who develop model insurance laws for consideration by state legislatures.