Expanding Small Employer Pooling Options for Paid Family Leave Act of 2021
Bill: H.R.5161 | Sponsor: Rep. Ferguson, A. Drew, IV (R-GA)
Policy area: Labor and Employment

Summary:
Expanding Small Employer Pooling Options for Paid Family Leave Act of 2021
This bill expands the purposes for which small employers may combine their contributions under a multiple employer welfare arrangement to include paid family and medical leave benefits.

To expand small employer pooling options to provide paid family and 
                             medical leave.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Small Employer Pooling 
Options for Paid Family Leave Act of 2021''.

SEC. 2. EXPAND SMALL EMPLOYER POOLING OPTIONS FOR PAID FAMILY AND 
              MEDICAL LEAVE.

    (a) Amendment to Employee Retirement Income Security Act of 1974.--
            (1) In general.--Section 3(40)(A) of the Employee 
        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 include 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 regulations 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 Internal Revenue 
        Code of 1986 is amended by inserting ``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 Committee on Ways and Means of the House of Representatives 
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 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.
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