II 

110TH CONGRESS 

1ST SESSION S. 1681 

To provide for a paid family and medical leave insurance program, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2007 

Mr. DODD (for himself and Mr. STEVENS) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To provide for a paid family and medical leave insurance 

program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Family Leave Insur5 ance Act of 2007’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS. 

7 Congress finds the following: 

8 (1) Since its passage, the Family and Medical 

9 Leave Act of 1993 (referred to in this section as the 

10 ‘‘FMLA’’) has assisted millions of employees in balVerDate Aug 31 2005 21:41 Jun 23, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1681.IS S1681

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1 ancing the demands of their jobs with their family 

2 responsibilities. However, many eligible employees 

3 are not able to utilize the benefits of the FMLA be4 cause FMLA leave is unpaid. According to a 2000 

5 survey on the FMLA by the Department of Labor, 

6 among those employees who need FMLA leave and 

7 don’t take it, 78 percent don’t take it because they 

8 can’t afford it. 

9 (2) An analysis of national data from the 2000 

10 FMLA survey by the Center for Women and Work 

11 at Rutgers University suggests that employees suffer 

12 severe financial hardship in order to be responsible 

13 family members and provide minor children and 

14 aging parents with the care they need. For example, 

15 among employees who needed to care for a seriously 

16 ill child— 

17 (A) 42 percent took time off even though 

18 they received no pay while doing so; 

19 (B) 46 percent received full or partial pay 

20 during at least part of the time off (including 

21 receiving pay for reasons such as use of vaca22 tion time); and 

23 (C) 12 percent could not take time off to 

24 care for the child due to lack of pay. 


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1 (3) Americans who provide direct care for their 

2 family members prevent the worsening of illnesses 

3 and promote strong recovery. For example, the 

4 length of a child’s stay in the hospital decreases by 

5 31 percent when parents are able to be present. 

6 (4) Forty-three percent of private sector em7 ployees do not have access to paid sick leave, as re8 ported in the Bureau of Labor Statistics National 

9 Compensation Survey in March 2006. Of those em10 ployees who do have paid sick leave, many are not 

11 able to use their own sick leave to receive payment 

12 while caring for family members who are ill. 

13 (5) Family and medical leave benefits strength14 en and support the business sector through health 

15 care savings and increased employee retention and 

16 productivity. 

17 (6) Demographic changes over the past few dec18 ades have altered the face and needs of the work19 force. It is now common for both parents to be in 

20 the workforce and for men and women to also serve 

21 as the primary caregivers for elderly spouses or par22 ents. 

23 (7) According to the Bureau of the Census and 

24 the Bureau of Labor Statistics, 56 percent of women 

25 with children under age 1 are in the labor force, 


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1 while 71 percent of all women with dependent chil2 dren under age 18 are in the labor force. 

(8) Nearly 2 3 ⁄3 of Americans under the age of 60 

4 expect to be responsible for the care of an elderly 

5 relative in the next 10 years. 

6 SEC. 3. GENERAL DEFINITIONS. 

7 (a) IN GENERAL.—The definitions provided by sec8 tion 101 of the Family and Medical Leave Act of 1993 

9 (29 U.S.C. 2611), other than the definitions of the terms 

10 ‘‘eligible employee’’ and ‘‘employer’’, shall apply for pur11 poses of this Act. 

12 (b) ADDITIONAL DEFINITIONS.—In this Act, the fol13 lowing additional definitions shall apply: 

14 (1) BOARD OF TRUSTEES.—The term ‘‘Board 

15 of Trustees’’ means the Board of Trustees of the In16 surance Fund. 

17 (2) INSURANCE FUND.—The term ‘‘Insurance 

18 Fund’’ means the Family and Medical Leave Insur19 ance Fund established under section 301. 

20 (3) MANAGING TRUSTEE.—The term ‘‘Man21 aging Trustee’’ means the Managing Trustee of the 

22 Board of Trustees of the Insurance Fund. 


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1 TITLE I—FAMILY AND MEDICAL 

2 LEAVE INSURANCE PROGRAM 

3 SEC. 101. PROGRAM DEFINITIONS. 

4 In this title: 

5 (1) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

6 employee’’ means any of the following: 

7 (A) An employee who— 

8 (i) is an eligible employee, as defined 

9 in section 101(2) of the Family and Med10 ical Leave Act of 1993 (29 U.S.C. 

11 2611(2)) but is not an employee of the 

12 Federal Government; and 

13 (ii) earned wages with a covered em14 ployer for 12 of the last 18 months, prior 

15 to filing an application for leave benefits 

16 under this title. 

17 (B) An employee— 

18 (i) of a small employer that has elect19 ed to participate in the Program under 

20 this title in accordance with such regula21 tions as the Secretary shall prescribe; 

22 (ii) who meets the requirements of 

23 subparagraphs (A) and (C) of section 

24 101(2) of such Act (29 U.S.C. 2611(2)), 


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1 but is not an employee of the Federal Gov2 ernment; and 

3 (iii) earned wages with a covered em4 ployer for 12 of the last 18 months, prior 

5 to filing an application for leave benefits 

6 under this title. 

7 (C) A self-employed individual who has— 

8 (i) elected to participate in the Pro9 gram under this title in accordance with 

10 such regulations as the Secretary shall pre11 scribe; 

12 (ii) self-employment income while a 

13 covered employer for 12 of the last 18 

14 months, prior to filing an application for 

15 leave benefits under this title; and 

16 (iii) paid premiums under section 

17 1401(c) of the Internal Revenue Code of 

18 1986 with respect to such self-employment 

19 income. 

20 (2) EMPLOYER-RELATED DEFINITIONS.— 

21 (A) COVERED EMPLOYER.—The term 

22 ‘‘covered employer’’ means a person— 

23 (i) that is— 

24 (I) an employer; 


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1 (II) a small employer that has 

2 elected to participate in the Program 

3 under this title in accordance with 

4 such regulations as the Secretary shall 

5 prescribe; or 

6 (III) a self-employed individual 

7 who has elected to so participate; and 

8 (ii) that is not a voluntary plan em9 ployer. 

10 (B) EMPLOYER.—The term ‘‘employer’’ 

11 means a person that— 

12 (i) is an employer, as defined in sec13 tion 101(4) of the Family and Medical 

14 Leave Act of 1993 (29 U.S.C. 2611(4)); 

15 but 

16 (ii) is not an entity of the Federal 

17 Government. 

18 (C) SMALL EMPLOYER.—The term ‘‘small 

19 employer’’— 

20 (i) means any person engaged in com21 merce or in any industry or activity affect22 ing commerce who employs not less than 2 

23 and not more than 49 employees for each 

24 working day during each of 20 or more 


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1 calendar workweeks in the current or pre2 ceding calendar year; and 

3 (ii) includes— 

4 (I) any person who acts, directly 

5 or indirectly, in the interest of an em6 ployer described in clause (i) to any of 

7 the employees of such employer; 

8 (II) any successor in interest of 

9 an employer described in clause (i); 

10 and 

11 (III) any public agency, as de12 fined in section 3(x) of the Fair Labor 

13 Standards Act of 1938 (29 U.S.C. 

14 203(x)) that is an employer described 

15 in clause (i) but is not an entity of the 

16 Federal Government. 

17 (D) VOLUNTARY PLAN EMPLOYER.—The 

18 term ‘‘voluntary plan employer’’ means an em19 ployer for which the Secretary has approved a 

20 voluntary plan under section 104 for the period 

21 involved. 

22 (3) LEAVE BENEFIT.—The term ‘‘leave benefit’’ 

23 means a family and medical leave insurance benefit 

24 described in section 103. 


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1 (4) PROGRAM.—The term ‘‘Program’’ means 

2 the Family and Medical Leave Insurance Program 

3 established under section 102. 

4 (5) VOLUNTARY PAID BENEFIT.—The term 

5 ‘‘voluntary paid benefit’’ means a family and medical 

6 leave insurance benefit provided under a voluntary 

7 plan approved under section 104 for the period in8 volved. 

9 SEC. 102. ESTABLISHMENT OF PROGRAM. 

10 (a) FEDERAL PROGRAM.—The Secretary of Labor 

11 shall establish a Family and Medical Leave Insurance Pro12 gram. In carrying out the Program, the Secretary shall 

13 ensure that covered employers provide family and medical 

14 leave insurance benefits described in section 103 to eligible 

15 employees. At the direction of the Secretary, the Managing 

16 Trustee shall pay funds from the Insurance Fund to reim17 burse the covered employers for the leave benefits. 

18 (b) EMPLOYER PARTICIPATION.—Each covered em19 ployer shall participate in the Program. 

20 SEC. 103. PROGRAM BENEFITS. 

21 (a) ENTITLEMENT.—Subject to subsections (b), (d), 

22 and (e), an eligible employee of a covered employer shall 

23 be entitled to a family and medical leave insurance benefit 

24 for a total of 8 workweeks of leave taken under the Family 

25 and Medical Leave Act of 1993 or other authority during 


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1 any 12-month period for 1 or more of the following rea2 sons: 

3 (1) Because of the birth of a son or daughter 

4 of the employee and in order to care for such son 

5 or daughter. 

6 (2) Because of the placement of a son or 

7 daughter with the employee for adoption or foster 

8 care. 

9 (3) In order to care for the spouse, or a son, 

10 daughter, or parent, of the employee, if such spouse, 

11 son, daughter, or parent has a serious health condi12 tion. 

13 (4) Because of a serious health condition that 

14 makes the employee unable to perform the functions 

15 of the position of such employee. 

16 (b) WAITING PERIOD.—During each 12-month pe17 riod described in subsection (a), each eligible employee 

18 shall be subject to a waiting period of 5 consecutive work19 days of leave described in subsection (a) (but not more 

20 than 7 calendar days), during which a leave benefit shall 

21 not be paid to the employee. The waiting period shall not 

22 reduce the 8 workweeks of leave benefits available under 

23 subsection (a). 

24 (c) BENEFIT AMOUNT.— 


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1 (1) IN GENERAL.—Subject to paragraph (2), an 

2 eligible employee’s leave benefit for any workday on 

3 which the employee takes leave as described in sub4 section (a) shall be calculated as— 

5 (A) in the case of an employee with an an6 nual income of not more than $20,000, an 

7 amount equal to 100 percent of that employee’s 

8 daily earnings; 

9 (B) in the case of an employee with an an10 nual income of more than $20,000 and not 

11 more than $30,000, an amount equal to the 

12 greater of— 

13 (i) 75 percent of that employee’s daily 

14 earnings; or 

15 (ii) 100 percent of the daily earnings 

16 of an employee with an annual income of 

17 $20,000; 

18 (C) in the case of an employee with an an19 nual income of more than $30,000 and not 

20 more than $60,000, an amount equal to the 

21 greater of— 

22 (i) 55 percent of that employee’s daily 

23 earnings; or 


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1 (ii) 75 percent of the daily earnings of 

2 an employee with an annual income of 

3 $30,000; 

4 (D) in the case of an employee with an an5 nual income of more than $60,000 and not 

6 more than $97,000, an amount equal to the 

7 greater of— 

8 (i) 40 percent of that employee’s daily 

9 earnings; or 

10 (ii) 55 percent of the daily earnings of 

11 an employee with an annual income of 

12 $60,000; and 

13 (E) in the case of an employee with an an14 nual income of more than $97,000, an amount 

15 equal to 40 percent of the daily earnings of an 

16 employee with an annual income of $97,000. 

17 (2) INDEXING OF ANNUAL INCOME CAT18 EGORIES.— 

19 (A) IN GENERAL.—The Secretary shall 

20 index the annual income amounts specified in 

21 paragraph (1) for each calendar year, using the 

22 national average wage index, as determined 

23 under section 209(k) of the Social Security Act 

24 (42 U.S.C. 409(k)). 


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1 (B) PUBLICATION.—Not later than the 

2 November 1 preceding each calendar year, the 

3 Secretary shall publish in the Federal Register 

4 the indexed amount determined under subpara5 graph (A) for that calendar year. 

6 (d) APPLICATION.— 

7 (1) IN GENERAL.—To be qualified to receive a 

8 leave benefit under the Program, an eligible em9 ployee shall submit an application to the covered em10 ployer of the employee at such time, in such manner, 

11 and containing the information specified in para12 graph (2), as appropriate, and such additional infor13 mation as the Secretary may by regulation require. 

14 (2) CERTIFICATION REQUIREMENTS.— 

15 (A) IN GENERAL.—The covered employer 

16 shall require that an application submitted 

17 under paragraph (1) for a leave benefit related 

18 to leave taken for a basis described in para19 graph (3) or (4) of subsection (a) contain a cer20 tification, submitted in a timely manner, issued 

21 by the health care provider of the eligible em22 ployee or of the son, daughter, spouse, or par23 ent, as appropriate, and meeting the require24 ments of subsection (b) of section 103 of the 


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1 Family and Medical Leave Act of 1993 (29 

2 U.S.C. 2613) in connection with such leave. 

3 (B) RECERTIFICATION.—In any case in 

4 which the covered employer has reason to doubt 

5 the validity of the certification provided under 

6 subparagraph (A), the covered employer may 

7 require, at the expense of the covered employer, 

8 that the eligible employee obtain the opinion of 

9 a second health care provider designated or ap10 proved by the covered employer (subject to sub11 section (c) of such section 103) concerning the 

12 information certified under subparagraph (A). 

13 The employee shall submit the opinion as an 

14 amendment to the application. 

15 (C) RESOLUTION.—In any case in which 

16 the second opinion described in subparagraph 

17 (B) differs from the opinion in the original cer18 tification provided under subparagraph (A), the 

19 covered employer may require, at the expense of 

20 the covered employer, that the employee obtain 

21 the opinion of a third health care provider des22 ignated or approved jointly by the covered em23 ployer and the employee concerning the infor24 mation certified under subparagraph (A). The 

25 opinion of the third health care provider conVerDate Aug 31 2005 21:41 Jun 23, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1681.IS S1681

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1 cerning such information shall be considered to 

2 be final and shall be binding on the covered em3 ployer and the employee. The employee shall 

4 submit the opinion as an amendment to the ap5 plication. 

6 (e) PAYMENT OF BENEFITS TO ELIGIBLE EMPLOY7 EES.— 

8 (1) DETERMINATION.—The covered employer 

9 shall review the application of the eligible employee 

10 and determine whether to certify a leave benefit pay11 ment for the employee. 

12 (2) PROVISION OF PAYMENT.—If the covered 

13 employer determines that the employer will certify 

14 the payment, the employer shall provide the payment 

15 to the eligible employee. Subject to subsection (d)(2) 

16 and paragraph (4), the covered employer shall pro17 vide the payment to the employee so as to maintain, 

18 as closely as possible, the regular payment schedule 

19 used for the employee. 

20 (3) REVIEW.—Any eligible employee dissatisfied 

21 with any initial determination under paragraph (1) 

22 shall be entitled to— 

23 (A) reconsideration of the determination by 

24 the covered employer; 


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1 (B) an appeal to the Secretary of the em2 ployer’s final determination after such reconsid3 eration; and 

4 (C) judicial review of the Secretary’s final 

5 decision after that appeal. 

6 (4) WITHHOLDING OF CERTIFICATION AND

7 PAYMENT.—In any case in which reconsideration, an 

8 appeal, or a review, relating to a covered employer’s 

9 determination about certification of a leave benefit 

10 payment, is or may be sought under paragraph (3), 

11 the covered employer may withhold certification of 

12 the payment, and provision of the payment, pending 

13 such reconsideration, appeal, or review. 

14 (5) OTHER COMPENSATION.—Except as other15 wise provided in this title, no employee shall be eligi16 ble to receive a leave benefit under the Program for 

17 any period during which— 

18 (A) the employee is receiving worker’s 

19 compensation, or unemployment compensation, 

20 in connection with the event for which the em21 ployee is taking the leave; or 

22 (B) the employee is receiving a voluntary 

23 paid benefit from an employer under a vol24 untary plan approved under section 104 for the 

25 period. 


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1 (f) REIMBURSEMENT TO COVERED EMPLOYERS FOR

2 BENEFITS.— 

3 (1) CERTIFICATION TO SECRETARY.—Subject to 

4 subsection (e)(4), on the final decision of the covered 

5 employer or on the final judgment of a court pursu6 ant to subsection (e)(3) that any eligible employee is 

7 entitled to any payment under this section, and not 

8 later than 1 year after making the payment to the 

9 employee, the covered employer shall submit to the 

10 Secretary an application in which the employer— 

11 (A) certifies the name of the employee, the 

12 date on which the payment was made, the 

13 amount of the payment, and the address of the 

14 employer; and 

15 (B) requests reimbursement of the pay16 ment. 

17 (2) REVIEW AND REIMBURSEMENT.— 

18 (A) REVIEW PERIOD.—The Secretary shall 

19 review the application. Not later than 30 days 

20 after receiving the application, the Secretary 

21 shall approve or deny the application. 

22 (B) REIMBURSEMENT.—If the Secretary 

23 approves the application— 

24 (i) the Secretary shall certify to the 

25 Managing Trustee the name and address 


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1 of the covered employer, and the amount 

2 of the payment; and 

3 (ii) the Managing Trustee shall imme4 diately reimburse the covered employer by 

5 paying the amount certified by the Sec6 retary from the Insurance Fund to the cov7 ered employer, subject to paragraph (4). 

8 (3) PAYMENT FROM INSURANCE FUND.—In 

9 making reimbursements for leave benefit payments 

10 under this section, the Managing Trustee may only 

11 use amounts paid from the Insurance Fund. 

12 (4) LIMITATION ON PAYMENTS.— 

13 (A) IN GENERAL.—The Managing Trustee 

14 shall not pay an amount from the Insurance 

15 Fund that is greater than the amount remain16 ing in the Insurance Fund. 

17 (B) NOTICE OF INSUFFICIENT FUNDS.— 

18 The Managing Trustee shall publish in the Fed19 eral Register a notice of insufficient funds when 

20 the Managing Trustee determines that insuffi21 cient funds remain in the Insurance Fund to 

22 reimburse covered employers for leave benefit 

23 payments. When such a notice is in effect, the 

24 employers shall not be required to pay leave 

25 benefits under this section. 


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1 (C) REVOCATION OF NOTICE.—If a notice 

2 of insufficient funds is in effect, and the Man3 aging Trustee determines that sufficient funds 

4 have been deposited to the Insurance Fund to 

5 make such reimbursements, the Managing 

6 Trustee shall revoke the notice, by publication 

7 in the Federal Register. On revocation of the 

8 notice, covered employers shall be required to 

9 pay leave benefits under this section (including 

10 leave benefits requested by eligible employees 

11 for periods when the notice was in effect). 

12 (5) FINDING REGARDING CONGRESSIONAL AU13 THORITY.—Congress finds that Congress has the au14 thority to appropriate funds to the Insurance Fund, 

15 including appropriating such funds in periods of na16 tional crisis such as a period following a national 

17 disaster. 

18 SEC. 104. VOLUNTARY EMPLOYER PLAN. 

19 (a) IN GENERAL.—Any employer may submit an ap20 plication to the Secretary for approval of a voluntary plan. 

21 The Secretary may require the employer to resubmit the 

22 plan for approval on a annual basis. During a period for 

23 which the Secretary has approved a plan, the applicant 

24 shall provide a voluntary paid benefit under the plan rath25 er than participating in the Program. 


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1 (b) APPROVAL.—The Secretary shall approve the vol2 untary plan of the applicant if the Secretary finds each 

3 of the following with respect to the applicant: 

4 (1) The rights afforded to the employees cov5 ered under the plan are equal to or greater than the 

6 rights afforded through the Program. 

7 (2) The plan has been made available to all of 

8 the employees of the applicant employed in the 

9 United States or to all employees at any 1 distinct, 

10 separate establishment maintained by the applicant 

11 in the United States. 

12 (3) The plan provides for insurance to be issued 

13 by an admitted disability insurer approved by the 

14 Secretary or equivalent insurance (which may be 

15 self-insurance). 

16 (4) The applicant has consented to the plan and 

17 has agreed to make the premium contributions re18 quired, if any, and transmit the proceeds to the dis19 ability insurer, if any. 

20 (5) The plan provides for the inclusion of future 

21 employees. 

22 (6)(A) The plan will be in effect for a period of 

23 not less than 1 year and, thereafter, continuously 

24 unless the Secretary finds that the applicant has 

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1 scribed in subparagraph (B), and that the fee de2 scribed in subparagraph (C) has been paid. 

3 (B) The notice shall be filed in writing with the 

4 Secretary and shall be effective— 

5 (i) on the anniversary of the effective date 

6 of the plan next following the date of the filing 

7 of the notice; or 

8 (ii) if such anniversary would occur less 

9 than 30 days after the date of the filing of the 

10 notice, on the next anniversary of that effective 

11 date. 

12 (C) The applicant shall pay a fee to the Sec13 retary in such amount as the Secretary determines 

14 to be adequate to provide leave benefits under this 

15 title to all eligible employees of the applicant for a 

16 period of at least 4 months, plus an amount to pay 

17 administrative costs related to processing and paying 

18 such benefits. 

19 (D) Amounts received by the Secretary under 

20 this paragraph shall be deposited in the Insurance 

21 Fund. 

22 (7) The amount of deductions from the wages 

23 of an employee that is in effect for the plan shall not 

24 be increased on any date other than on the date of 

25 an anniversary of the effective date of the plan. 


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1 (c) ORDERS AND WITHDRAWAL OF APPROVAL.—If 

2 the Secretary finds that a voluntary plan employer is not 

3 paying voluntary paid benefits required under the vol4 untary plan to the employees under the plan, the Secretary 

5 may order the employer to make the payments. If the Sec6 retary finds that a voluntary plan employer is not com7 plying with the provisions of the plan, including by not 

8 paying voluntary paid benefits required under the plan, 

9 the Secretary may revoke the Secretary’s approval for the 

10 plan, and require the employer to participate in the Pro11 gram. 

12 SEC. 105. ADDITIONAL BENEFITS. 

13 (a) ADDITIONAL EMPLOYER BENEFITS.— 

14 (1) COVERED EMPLOYERS.—Nothing in this 

15 title shall be construed to discourage a covered em16 ployer from providing an additional benefit in con17 junction with leave described in section 103(a) to an 

18 eligible employee, in addition to the leave benefit 

19 provided to that employee. The additional employer 

20 benefit shall not reduce the amount of the leave ben21 efit that an eligible employee receives under this 

22 title. 

23 (2) VOLUNTARY PLAN EMPLOYERS.—Nothing 

24 in this title shall be construed to discourage a vol25 untary plan employer from providing an additional 


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1 benefit in conjunction with leave described in section 

2 103(a) to an employee, in addition to the voluntary 

3 paid benefit provided to that employee. The addi4 tional employer benefit shall not reduce the amount 

5 of the voluntary paid benefit that an employee re6 ceives under a voluntary plan described in section 

7 104. 

8 (b) COLLECTIVE BARGAINING.— 

9 (1) MORE PROTECTIVE.—Nothing in this title 

10 shall be construed to diminish the obligation of a 

11 covered employer or voluntary plan employer to com12 ply with any collective bargaining agreement or any 

13 employment benefit program or plan that provides 

14 greater paid leave rights to employees than the 

15 rights established under this title (including rights 

16 established under a plan described in section 104). 

17 (2) LESS PROTECTIVE.—The rights established 

18 for employees under this title (including rights es19 tablished under a plan described in section 104) 

20 shall not be diminished by any collective bargaining 

21 agreement or any employment benefit program or 

22 plan. 

23 (c) SENSE OF THE SENATE.—It is the sense of the 

24 Senate that Federal law should be enacted to permit a 

25 State to continue to implement an existing (as of the date 


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1 of enactment of this Act) paid family and medical leave 

2 or temporary disability insurance program that is deter3 mined by the Secretary to provide to employees equal or 

4 greater rights than the rights established under the Pro5 gram. 

6 SEC. 106. PROHIBITED ACTS BY EMPLOYER. 

7 (a) INTERFERENCE WITH RIGHTS.—It shall be un8 lawful for any covered employer to interfere with, restrain, 

9 or deny the exercise of or the attempt to exercise, any 

10 right provided under this title. 

11 (b) DISCRIMINATION.—It shall be unlawful for any 

12 covered employer to discharge or in any other manner dis13 criminate against any individual for opposing any practice 

14 made unlawful by this title. 

15 (c) INTERFERENCE WITH PROCEEDINGS OR INQUIR16 IES.—It shall be unlawful for any person to discharge or 

17 in any other manner discriminate against any individual 

18 because such individual— 

19 (1) has filed any charge, or has instituted or 

20 caused to be instituted any proceeding, under or re21 lated to this title; 

22 (2) has given, or is about to give, any informa23 tion in connection with any inquiry or proceeding re24 lating to any right provided under this title; or 


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1 (3) has testified, or is about to testify, in any 

2 inquiry or proceeding relating to any right provided 

3 under this title. 

4 SEC. 107. ENFORCEMENT. 

5 (a) CIVIL ACTION BY EMPLOYEES.— 

6 (1) LIABILITY.—Any covered employer who vio7 lates section 106 shall be liable to any eligible em8 ployee affected— 

9 (A) for damages equal to— 

10 (i) the amount of— 

11 (I) any wages, salary, employ12 ment benefits, or other compensation 

13 denied or lost to such employee by 

14 reason of the violation; or 

15 (II) in a case in which wages, 

16 salary, employment benefits, or other 

17 compensation have not been denied or 

18 lost to the employee, any actual mone19 tary losses sustained by the employee 

20 as a direct result of the violation, such 

21 as the cost of providing care, up to a 

22 sum equal to 8 weeks of wages or sal23 ary for the employee; 


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1 (ii) the interest on the amount de2 scribed in clause (i) calculated at the pre3 vailing rate; and 

4 (iii) an additional amount as liq5 uidated damages equal to the sum of the 

6 amount described in clause (i) and the in7 terest described in clause (ii), except that 

8 if a covered employer who has violated sec9 tion 106 proves to the satisfaction of the 

10 court that the act or omission which vio11 lated section 106 was in good faith and 

12 that the employer had reasonable grounds 

13 for believing that the act or omission was 

14 not a violation of section 106, such court 

15 may, in the discretion of the court, reduce 

16 the amount of the liability to the amount 

17 and interest determined under clauses (i) 

18 and (ii), respectively; and 

19 (B) for such equitable relief as may be ap20 propriate, including employment, reinstatement, 

21 and promotion. 

22 (2) RIGHT OF ACTION.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), an action to recover the 

25 damages or equitable relief prescribed in paraVerDate Aug 31 2005 21:41 Jun 23, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1681.IS S1681

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1 graph (1) may be maintained against any cov2 ered employer (including a public agency) in 

3 any Federal or State court of competent juris4 diction by any 1 or more employees for and on 

5 behalf of— 

6 (i) the employees; or 

7 (ii) the employees and other employ8 ees similarly situated. 

9 (B) LIMITATION.—The right provided by 

10 subparagraph (A) to bring an action by or on 

11 behalf of any employee shall terminate— 

12 (i) on the filing of a complaint by the 

13 Secretary in an action under subsection 

14 (b)(3) in which restraint is sought of any 

15 further delay in the payment of the 

16 amount described in paragraph (1)(A) to 

17 such employee by an employer responsible 

18 under paragraph (1) for the payment; or 

19 (ii) on the filing of a complaint by the 

20 Secretary in an action under paragraph (1) 

21 or (2) of subsection (b) in which a recovery 

22 is sought of the damages described in 

23 paragraph (1)(A) owing to an eligible em24 ployee by an employer liable under para25 graph (1), 


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1 unless the action described in clause (i) or (ii) 

2 is dismissed without prejudice on motion of the 

3 Secretary. 

4 (3) FEES AND COSTS.—The court in an action 

5 brought under this subsection shall, in addition to 

6 any judgment awarded to the plaintiff, allow a rea7 sonable attorney’s fee, reasonable expert witness 

8 fees, and other costs of the action to be paid by the 

9 defendant. 

10 (b) ACTIONS BY THE SECRETARY.— 

11 (1) ADMINISTRATIVE ACTION.—The Secretary 

12 shall receive, investigate, and attempt to resolve 

13 complaints of violations of section 106 in the same 

14 manner that the Secretary receives, investigates, and 

15 attempts to resolve complaints of violations of sec16 tions 6 and 7 of the Fair Labor Standards Act of 

17 1938 (29 U.S.C. 206 and 207). 

18 (2) CIVIL ACTION.— 

19 (A) RIGHT OF ACTION.—The Secretary 

20 may bring an action in any court of competent 

21 jurisdiction to recover the damages described in 

22 subsection (a)(1)(A). 

23 (B) SUMS RECOVERED.—Any sums recov24 ered by the Secretary pursuant to this para25 graph shall be held in a special deposit account 


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1 and shall be paid, on order of the Secretary, di2 rectly to each employee affected. Any such sums 

3 not paid to an employee because of inability to 

4 do so within a period of 3 years shall be depos5 ited into the Treasury of the United States as 

6 miscellaneous receipts. 

7 (3) ACTION FOR INJUNCTION BY THE SEC8 RETARY.—The district courts of the United States 

9 shall have jurisdiction, for cause shown, in an action 

10 brought by the Secretary— 

11 (A) to restrain violations of section 106, 

12 including the restraint of any withholding of 

13 payment of wages, salary, employment benefits, 

14 or other compensation, plus interest, found by 

15 the court to be due to eligible employees; or 

16 (B) to award such other equitable relief as 

17 may be appropriate, including employment, re18 instatement, and promotion. 

19 (4) SOLICITOR OF LABOR.—The Solicitor of 

20 Labor may appear for and represent the Secretary 

21 on any litigation brought under this subsection. 

22 (c) LIMITATION.— 

23 (1) Except as provided in paragraph (2), an ac24 tion may be brought under subsections (a) or (b) not 

25 later than 2 years after the date of the last event 


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1 constituting the alleged violation for which the ac2 tion is brought. 

3 (2) WILLFUL VIOLATION.—In the case of such 

4 action brought for a willful violation of section 106, 

5 such action may be brought within 3 years of the 

6 date of the last event constituting the alleged viola7 tion for which such action is brought. 

8 (3) COMMENCEMENT.—In determining when an 

9 action is commenced by the Secretary for the pur10 poses of this subsection, it shall be considered to be 

11 commenced on the date when the complaint is filed. 

12 (d) INVESTIGATIVE AUTHORITY.— 

13 (1) IN GENERAL.—To ensure compliance with 

14 the provisions of this title, or any regulation or order 

15 issued under this title, the Secretary shall have, sub16 ject to paragraph (3), the investigative authority 

17 provided under section 11(a) of the Fair Labor 

18 Standards Act of 1938 (29 U.S.C. 211(a)). 

19 (2) OBLIGATION TO KEEP AND PRESERVE

20 RECORDS.—Any covered employer shall make, keep, 

21 and preserve records pertaining to compliance with 

22 this title in accordance with section 11(c) of the Fair 

23 Labor Standards Act of 1938 (29 U.S.C. 211(c)) 

24 and in accordance with regulations issued by the 


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1 Secretary. The Secretary shall have access to the 

2 records for purposes of conducting audits. 

3 (3) REQUIRED SUBMISSIONS GENERALLY LIM4 ITED TO AN ANNUAL BASIS.—The Secretary shall 

5 not under the authority of this subsection require 

6 any covered employer or any plan, fund, or program 

7 to submit to the Secretary any books or records 

8 more than once during any 12-month period, unless 

9 the Secretary has reasonable cause to believe there 

10 may exist a violation of this title or any regulation 

11 or order issued pursuant to this title, or is inves12 tigating a charge pursuant to subsection (b). 

13 (4) SUBPOENA POWER.—For the purposes of 

14 any investigation provided for in this section, the 

15 Secretary shall have the subpoena authority provided 

16 for under section 9 of the Fair Labor Standards Act 

17 of 1938 (29 U.S.C. 209). 

18 SEC. 108. PENALTIES. 

19 (a) PENALTIES FOR SUBMISSION OF FALSE CERTIFI20 CATIONS.—If the Secretary finds that any individual sub21 mits a false certification of the health condition of any 

22 person in order to obtain leave benefits under this title 

23 with the intent to defraud, the Secretary shall assess a 

24 penalty against the individual in an amount up to 100 per25 cent of the benefits paid as a result of the false certifiVerDate Aug 31 2005 21:41 Jun 23, 2007 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1681.IS S1681

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1 cation. Penalties collected under this subsection shall be 

2 deposited in the Insurance Fund, notwithstanding the pro3 visions of title 31, United States Code and used to reim4 burse the covered employers involved for the amount of 

5 the leave benefits. 

6 (b) CRIMINAL PENALTIES FOR FALSE STATEMENTS

7 AND SOLICITATIONS.—Whoever— 

8 (1) makes or causes to be made any false state9 ment in support of an application for leave benefits 

10 under this title; 

11 (2) knowingly presents or causes to be pre12 sented any false written or oral material statement 

13 in support of any claim for leave benefits under this 

14 title; 

15 (3) knowingly solicits, receives, offers, pays, or 

16 accepts any rebate, refund, commission, preference, 

17 patronage, dividend, discount, or other consider18 ation, whether in the form of money or otherwise, as 

19 compensation or inducement for soliciting a claimant 

20 to apply for leave benefits under this title, except to 

21 the extent authorized by a law of the United States; 

22 or 

23 (4) knowingly assists, abets, solicits, or con24 spires with any person to engage in an act that is 

25 prohibited under paragraph (1), (2), or (3), 


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1 shall be guilty of a felony and upon conviction shall be 

2 fined under title 18, United States Code, or imprisoned 

3 for not more than 5 years, or both. 

4 SEC. 109. EDUCATION PROGRAMS. 

5 (a) AUTHORITY.—The Secretary shall develop and 

6 maintain a program of education concerning the rights 

7 and leave benefits under this title. 

8 (b) NOTICE TO EMPLOYERS.—The Secretary shall 

9 provide to each covered employer a notice informing em10 ployees of the rights and leave benefits available under this 

11 title. The notice shall be given by every covered employer 

12 to each employee hired, and to each employee taking leave 

13 as described in section 103(a). 

14 SEC. 110. TREATMENT OF PAYMENTS AND REIMBURSE15 MENTS. 

16 For purposes of the Internal Revenue Code of 

17 1986— 

18 (1) any payment of a leave benefit by any cov19 ered employer shall not be deductible; and 

20 (2) any reimbursement of such payment shall 

21 not be included in gross income. 

22 SEC. 111. REGULATIONS. 

23 The Secretary shall issue regulations to carry out this 

24 title. 


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1 SEC. 112. EFFECTIVE DATE. 

2 This title shall take effect on January 1, 2008, and 

3 shall apply to periods of leave that commence on or after 

4 January 1, 2009. 

5 TITLE II—CIVIL SERVICE FAM6 ILY AND MEDICAL LEAVE IN7 SURANCE PROGRAM 

8 SEC. 201. PROGRAM DEFINITIONS. 

9 In this title: 

10 (1) AGENCY.—The term ‘‘agency’’ means an 

11 agency covered under subchapter V of chapter 63 of 

12 title 5, United States Code. 

13 (2) AGENCY EMPLOYEE.—The term ‘‘agency 

14 employee’’ means an employee who— 

15 (A) meets the requirements of paragraph 

16 (1) of section 6381 of title 5, United States 

17 Code; and 

18 (B) has earned wages with an agency for 

19 12 of the last 18 months, prior to filing an ap20 plication for leave benefits under this title. 

21 SEC. 202. ESTABLISHMENT OF PROGRAM. 

22 (a) IN GENERAL.—The Director of the Office of Per23 sonnel Management shall establish a Civil Service Family 

24 and Medical Leave Insurance Program, and shall issue 

25 regulations providing for the implementation of the pro26 gram. In issuing the regulations, the Director shall require 


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1 that the Director shall provide, or that the agencies shall 

2 provide, family and medical leave insurance benefits de3 scribed in section 103 to agency employees. The regula4 tions issued under this subsection shall include provisions 

5 that are the same as regulations issued by the Secretary 

6 to implement the statutory provisions of sections 103, 

7 105, 109, and 110, except insofar as the Director may 

8 determine, for good cause shown and stated together with 

9 the regulations, that a modification of the regulations 

10 would be more effective for the implementation of the 

11 rights and protections under those sections. The regula12 tions shall provide for appropriate remedies and proce13 dures for violations of this title. 

14 (b) PAYMENT.—At the direction of the Director or 

15 the head of an agency, as specified in the regulations, the 

16 Managing Trustee shall pay funds from the Insurance 

17 Fund for the leave benefits. 

18 TITLE III—FAMILY AND MED19 ICAL LEAVE INSURANCE 

20 FUND 

21 SEC. 301. ESTABLISHMENT. 

22 (a) IN GENERAL.—There is created in the Treasury 

23 of the United States a trust fund to be known as the Fam24 ily and Medical Leave Insurance Fund. The Insurance 

25 Fund shall consist of such amounts as may be deposited 


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1 in, or appropriated to, such fund as provided in this sec2 tion. 

3 (b) APPROPRIATIONS TO INSURANCE FUND.— 

4 (1) AMOUNTS APPROPRIATED.—There is appro5 priated to the Insurance Fund for fiscal year 2008 

6 and each fiscal year thereafter, out of any moneys 

7 in the Treasury not otherwise appropriated, amounts 

8 equivalent to 100 percent of— 

9 (A) the family and medical leave premiums 

10 imposed by sections 3101(c) and 3111(c) of the 

11 Internal Revenue Code of 1986 with respect to 

12 wages (as defined in section 3121 of such Code) 

13 reported to the Secretary of the Treasury or the 

14 Secretary’s delegate under subtitle F of such 

15 Code after December 31, 2007, as determined 

16 by the Secretary of the Treasury by applying 

17 the applicable rates of premium payment under 

18 such sections to such wages, which wages shall 

19 be certified by the Commissioner of Social Se20 curity on the basis of the records of wages es21 tablished and maintained by the Commissioner 

22 of Social Security in accordance with such re23 ports; and 

24 (B) the family and medical leave premiums 

25 imposed by section 1401(c) of such Code with 


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1 respect to self-employment income (as defined 

2 in section 1402 of such Code) reported to the 

3 Secretary of the Treasury or the Secretary’s 

4 delegate on tax returns under subtitle F of such 

5 Code after December 31, 2007, as determined 

6 by the Secretary of the Treasury by applying 

7 the applicable rate of premium payment under 

8 such section 1401(c) to such self-employment 

9 income, which self-employment income shall be 

10 certified by the Commissioner of Social Security 

11 on the basis of the records of self-employment 

12 income established and maintained by the Com13 missioner of Social Security in accordance with 

14 such returns. 

15 (2) TRANSFERS.—Such appropriated amounts 

16 shall be transferred from time to time from the gen17 eral fund of the Treasury to the Insurance Fund. 

18 Such amounts shall be determined on the basis of 

19 estimates by the Secretary of the Treasury of the 

20 premiums, specified in paragraph (1), paid to or de21 posited into the Treasury, and proper adjustments 

22 shall be made in amounts subsequently transferred 

23 to the extent prior estimates were in excess of or 

24 were less than such premiums. 


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1 (3) INVESTMENTS.—All amounts transferred to 

2 the Insurance Fund under paragraph (2) shall be in3 vested by the Managing Trustee referred to in sec4 tion 302(c) in the same manner and to the same ex5 tent as the other assets of the Insurance Fund. 

6 SEC. 302. BOARD OF TRUSTEES. 

7 (a) ESTABLISHMENT AND MEMBERSHIP.—With re8 spect to the Insurance Fund, there is established a body 

9 to be known as the Board of Trustees of the Insurance 

10 Fund which shall be composed of the Secretary of the 

11 Treasury, the Secretary of Labor, the Commissioner of 

12 Social Security, and the Secretary of Health and Human 

13 Services, all ex officio, and of two members of the public 

14 (both of whom may not be from the same political party), 

15 who shall be nominated by the President, by and with the 

16 advice and consent of the Senate. 

17 (b) TERMS AND VACANCIES.—Members of the Board 

18 of Trustees shall serve for a period of 4 years. A member 

19 of the Board of Trustees nominated and confirmed as a 

20 member of the public to fill a vacancy occurring during 

21 a term shall be nominated and confirmed only for the re22 mainder of such term. An individual nominated and con23 firmed as a member of the public may serve in such posi24 tion after the expiration of such member’s term until the 

25 earlier of the date on which the member’s successor takes 


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1 office or the date on which a report of the Board is first 

2 issued under paragraph (2) after the expiration of the 

3 member’s term. 

4 (c) MANAGING TRUSTEE AND SECRETARY.—The 

5 Secretary of the Treasury shall be the Managing Trustee 

6 of the Board of Trustees. The Secretary of Labor shall 

7 serve as the Secretary of the Board of Trustees. 

8 (d) BASIC DUTIES OF THE BOARD OF TRUSTEES.— 

9 The Board of Trustees shall meet not less frequently than 

10 once each calendar year. It shall be the duty of the Board 

11 of Trustees to— 

12 (1) hold the Insurance Fund; 

13 (2) report to Congress not later than April 1 of 

14 each year— 

15 (A) on the operation and status of the In16 surance Fund during the fiscal year preceding 

17 the fiscal year in which the report is made; and 

18 (B) on the expected operation and status 

19 of the Insurance Fund during the fiscal year in 

20 which the report is made and the next 2 fiscal 

21 years; 

22 (3) report immediately to Congress whenever 

23 the Board is of the opinion that the amount in the 

24 Insurance Fund is unduly small; and 


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1 (4) review the general policies followed in man2 aging the Insurance Fund, and recommend changes 

3 in such policies, including necessary changes in the 

4 provisions of law that govern the way in which the 

5 Insurance Fund is to be managed. 

6 (e) REQUIREMENTS RELATING TO ANNUAL RE7 PORT.—The report provided for in subsection (d)(2) shall 

8 include a statement of the assets of, and the disburse9 ments made from, the Insurance Fund during the fiscal 

10 year preceding the fiscal year in which the report is made, 

11 an estimate of the expected income to, and disbursements 

12 to be made from, the Insurance Fund during the fiscal 

13 year in which the report is made and each of the next 

14 two fiscal years, and a statement of the actuarial status 

15 of the Insurance Fund. Such report shall also include an 

16 actuarial opinion by an appropriate employee of the De17 partment of Labor certifying that the techniques and 

18 methodologies used for the report are generally accepted 

19 within the actuarial profession and that the assumptions 

20 and cost estimates used for the report are reasonable. 

21 (f) LIABILITY.—A person serving as a member of the 

22 Board of Trustees shall not be considered to be a fiduciary 

23 and shall not be personally liable for actions taken in such 

24 capacity with respect to the Insurance Fund. 


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1 SEC. 303. INVESTMENT OF THE FAMILY AND MEDICAL 

2 LEAVE INSURANCE FUND. 

3 (a) OBLIGATIONS.—It shall be the duty of the Man4 aging Trustee to invest such portion of the Insurance 

5 Fund as is not, in the trustee’s judgment, required to meet 

6 current withdrawals. Such investments may be made only 

7 in interest-bearing obligations of the United States or in 

8 obligations guaranteed as to both principal and interest 

9 by the United States. 

10 (b) ACQUISITION.—The obligations referred to in 

11 subsection (a) may be acquired— 

12 (1) on original issue at the issue price; or 

13 (2) by purchase of outstanding obligations at 

14 the market price. 

15 (c) OBLIGATIONS ISSUED FOR PURCHASE BY

16 FUND.—The purposes for which obligations of the United 

17 States may be issued under chapter 31 of title 31, United 

18 States Code, are extended to authorize the issuance at par 

19 of public debt obligations for purchase by the Insurance 

20 Fund. Such obligations issued for purchase by the Insur21 ance Fund shall have dates of maturity fixed with due re22 gard for the needs of the Insurance Fund. Such obliga23 tions shall bear interest at a rate equal to— 

24 (1) except as provided in paragraph (2), the av25 erage market yield (computed by the Managing 

26 Trustee on the basis of market quotations as of the 


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1 end of the calendar month preceding the date of 

2 such issue) on all marketable interest-bearing obliga3 tions of the United States forming a part of the 

4 public debt that are not due or callable until after 

5 the expiration of four years from the end of such 

6 calendar month; or 

7 (2) in a case in which such average market 

8 yield is not a multiple of 0.1 percent, the multiple 

9 of 0.1 percent nearest such market yield. 

10 (d) OTHER OBLIGATIONS.—The Managing Trustee 

11 may purchase interest-bearing obligations of the United 

12 States that are not described in subsection (c) or obliga13 tions guaranteed as to both principal and interest by the 

14 United States, on original issue or at the market price, 

15 only in cases in which the trustee determines that the pur16 chase of obligations described in this paragraph is in the 

17 public interest. 

18 (e) DISPOSITION AND REDEMPTION OF OBLIGA19 TIONS.—Any obligations acquired by the Insurance Fund 

20 (except public debt obligations issued exclusively to the In21 surance Fund) may be sold by the Managing Trustee at 

22 the market price, and such public debt obligations may 

23 be redeemed at par plus accrued interest. 

24 (f) CREDITING OF INTEREST AND PROCEEDS.—The 

25 interest on, and the proceeds from the sale or redemption 


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1 of, any obligations held in the Insurance Fund shall be 

2 credited to and form a part of the Insurance Fund. 

3 SEC. 304. PAYMENTS FROM FAMILY AND MEDICAL LEAVE 

4 INSURANCE FUND. 

5 The Managing Trustee shall pay from time to time 

6 from the Insurance Fund such amounts as the Secretary 

7 of Labor certifies are necessary to make the payments pro8 vided for by section 103, and payments with respect to 

9 administrative expenses under section 305. 

10 SEC. 305. ADMINISTRATIVE EXPENSES. 

11 (a) AVAILABILITY OF INSURANCE FUND.—Under 

12 regulations that shall be prescribed by the Secretary of 

13 Labor, funds shall be made available from the Insurance 

14 Fund in connection with the administration of this Act 

15 and the administration of related provisions of the Inter16 nal Revenue Code of 1986 in the same manner and extent 

17 as funds are made available from the trust funds referred 

18 to in section 201(g) of the Social Security Act (42 U.S.C. 

19 401(g)) in connection with the administration of the rel20 evant provisions referred to in such section. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be made available for expenditure such 

23 amounts as Congress may determine to be appropriate to 

24 pay the costs of the part of the administration of this Act 

25 (including start-up costs, technical assistance, and costs 


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1 for small employers electing to participate in the Family 

2 and Medical Leave Insurance Program) for which the Sec3 retary of Labor is responsible. 

4 (c) GIFTS AND BEQUESTS.—The Managing Trustee 

5 may accept on behalf of the United States money gifts 

6 and bequests made unconditionally to the Insurance Fund 

7 for the benefit of the Insurance Fund or any activity fi8 nanced through the Insurance Fund and such gifts and 

9 bequests shall be deposited into the Insurance Fund. 

10 (d) PROCESSING OF TAX DATA.—Section 232 of the 

11 Social Security Act (42 U.S.C. 432) shall apply with re12 spect to this Act, in the same manner and to the same 

13 extent as such section applies with respect to title II of 

14 the Social Security Act (42 U.S.C. 401 et seq.). 

15 SEC. 306. AMENDMENTS TO THE INTERNAL REVENUE CODE 

16 OF 1986. 

17 (a) EMPLOYEE PREMIUMS.—Section 3101 of the In18 ternal Revenue Code of 1986 (relating to tax on employ19 ees) is amended— 

20 (1) by redesignating subsection (c) as sub21 section (d); and 

22 (2) by inserting after subsection (c) the fol23 lowing new subsection: 

24 ‘‘(c) FAMILY AND MEDICAL LEAVE PREMIUMS.— 


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1 ‘‘(1) IN GENERAL.—In addition to the taxes im2 posed by subsections (a) and (b), there is imposed 

3 on the income of every individual a family and med4 ical leave premium equal to the applicable percent5 age of the wages (as defined in section 3121(a)) re6 ceived by the individual with respect to employment 

7 (as defined in section 3121(b)). 

8 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

9 of paragraph (1), the applicable percentage is— 

10 ‘‘(A) 0.1 percent with respect to periods of 

11 employment by a small employer (as defined in 

12 section 3(b) of the Family Leave Insurance Act 

13 of 2007) electing to participate in the Family 

14 and Medical Leave Insurance Program (estab15 lished under section 102 of such Act); and 

16 ‘‘(B) 0.2 percent with respect to all other 

17 periods of employment. 

18 ‘‘(3) EXCEPTION FOR CERTAIN EMPLOY19 MENT.—Paragraph (1) shall not apply with respect 

20 to a period of employment— 

21 ‘‘(A) by an employer during which the Sec22 retary of Labor determines the employer has in 

23 effect a plan which is equivalent to or better 

24 than the Family and Medical Leave Insurance 


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•S 1681 IS

1 Program (established under section 102 of the 

2 Family Leave Insurance Act of 2007); or 

3 ‘‘(B) by a small employer (as so defined) 

4 who has not elected to participate in such Pro5 gram. 

6 For purposes of the preceding sentence, the Sec7 retary of Labor shall prescribe such regulations as 

8 may be appropriate or necessary, including regula9 tions requiring documentation of employer pro10 grams.’’. 

11 (b) EMPLOYER PREMIUMS.—Section 3111 of the In12 ternal Revenue Code of 1986 (relating to tax on employ13 ers) is amended— 

14 (1) by redesignating subsection (c) as sub15 section (d); and 

16 (2) by inserting after subsection (c) the fol17 lowing new subsection: 

18 ‘‘(c) FAMILY AND MEDICAL LEAVE PREMIUMS.— 

19 ‘‘(1) IN GENERAL.—In addition to the excise 

20 taxes imposed by subsections (a) and (b), there is 

21 imposed on every employer a family and medical 

22 leave premium, with respect to having individuals in 

23 such employer’s employ, equal to the applicable per24 centage of the wages (as defined in section 3121(a)) 


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•S 1681 IS

1 paid by such employer with respect to employment 

2 (as defined in section 3121(b)). 

3 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

4 of paragraph (1), the applicable percentage is— 

5 ‘‘(A) 0.1 percent with respect to small em6 ployers (as defined in section 3(b) of the Fam7 ily Leave Insurance Act of 2007) electing to 

8 participate in the Family and Medical Leave In9 surance Program (established under section 

10 102 of such Act); and 

11 ‘‘(B) 0.2 percent with respect to all other 

12 employers. 

13 ‘‘(3) EXCEPTION FOR CERTAIN EMPLOYERS.— 

14 Paragraph (1) shall not apply for any period with 

15 respect to an employer to whom paragraph (1) of 

16 section 3101(c) does not apply by reason of para17 graph (3) thereof.’’. 

18 (c) SELF-EMPLOYED PREMIUMS.—Section 1401 of 

19 the Internal Revenue Code of 1986 is amended— 

20 (1) by redesignating subsection (c) as sub21 section (d); and 

22 (2) by inserting after subsection (b) the fol23 lowing new subsection: 

24 ‘‘(c) FAMILY AND MEDICAL LEAVE PREMIUMS.— 


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1 ‘‘(1) IN GENERAL.—In addition to the taxes im2 posed by subsections (a) and (b), there is imposed 

3 for each taxable year, on the self-employment income 

4 of every individual, a family and medical leave pre5 mium equal to 0.2 percent of the amount of the self6 employment income for such taxable year. 

7 ‘‘(2) EXCEPTION FOR CERTAIN EMPLOYERS.— 

8 Paragraph (1) shall not apply for any period with 

9 respect to an employer who has not elected to par10 ticipate in the Family and Medical Leave Insurance 

11 Program (established under section 102 of the Fam12 ily Leave Insurance Act of 2007).’’. 

13 (d) CONFORMING AMENDMENTS TO SOCIAL SECU14 RITY ACT.—Section 201 of the Social Security Act (42 

15 U.S.C. 401) is amended— 

16 (1) by striking ‘‘sections 3101(b) and 3111(b)’’ 

17 both places it appears in subsection (a)(3) and in18 serting ‘‘sections 3101(b), 3101(c), 3111(b), and 

19 3111(c)’’, and 

20 (2) by striking ‘‘section 1401(b)’’ both places it 

21 appears in subsection (a)(4) and inserting ‘‘sections 

22 1401(b) and 1401(c)’’. 

23 (e) EFFECTIVE DATE.— 


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1 (1) EMPLOYMENT PREMIUMS.—The amend2 ments made by subsections (a), (b), and (d)(1) shall 

3 apply to wages paid after December 31, 2007. 

4 (2) SELF-EMPLOYMENT PREMIUMS.—The 

5 amendments made by subsections (c) and (d)(2) 

6 shall apply to taxable years beginning after Decem7 ber 31, 2007. 

Æ 


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