I 
117TH CONGRESS 
1ST SESSION H. R. 5161 
To expand small employer pooling options to provide paid family and medical 
leave. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 3, 2021 
Mr. FERGUSON introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To expand small employer pooling options to provide paid 
family and medical leave. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Expanding Small Em-
ployer Pooling Options for Paid Family Leave Act of 
2021’’. 
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SEC. 2. EXPAND SMALL EMPLOYER POOLING OPTIONS FOR 
PAID FAMILY AND MEDICAL LEAVE. 
(a) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 3(40)(A) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(40)(A)) is amended by inserting ‘‘, 
which, for the purposes of this paragraph, may in-
clude paid family and medical leave benefits,’’ after 
‘‘paragraph (1)’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall take effect on the date that 
is 90 days after the date of enactment of this Act. 
(3) REGULATIONS.—The Secretary of Labor 
shall, in coordination with the issuance of regula-
tions by the Secretary of the Treasury pursuant to 
subsection (b)(3), issue regulations to implement 
and ensure compliance with the amendment made by 
paragraph (1) to ensure consistency and parity in 
the treatment of paid family medical leave benefits 
across Federal agencies. 
(b) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN GENERAL.—Section 501(c)(9) of the In-
ternal Revenue Code of 1986 is amended by insert-
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ing ‘‘disability, paid family and medical leave,’’ after 
‘‘life, sick, accident,’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply after the date that is 
90 days after the date of enactment of this Act, in 
taxable years ending after such date. 
(3) REGULATIONS.—The Secretary of the 
Treasury shall, in coordination with the issuance of 
regulations by the Secretary of Labor pursuant to 
subsection (a)(3), issue regulations to implement 
and ensure compliance with the amendment made by 
paragraph (1) to ensure consistency and parity in 
the treatment of paid family medical leave benefits 
across Federal agencies. 
(c) REPORT.—Not later than 120 days after the date 
of enactment of this Act, the Secretary of Labor and the 
Secretary of the Treasury shall jointly submit a report to 
the Committee on Education and Labor and the Com-
mittee on Ways and Means of the House of Representa-
tives with recommendations describing— 
(1) statutory or regulatory changes needed to 
facilitate multi-employer and small business pooling 
and cost-sharing, such as through multiple employer 
welfare arrangements, for the purpose of providing 
paid family and medical leave benefits, including 
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through the use of short-term disability insurance, 
to the employees of two or more employers; and 
(2) statutory or regulatory changes necessary to 
allow employers to implement the actions described 
in paragraph (1) through a tax exempt trust, such 
as a voluntary employee benefits association, or 
other mechanism. 
Æ 
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