An Act To Create Paid Family and Medical Leave Benefits
Maine Legislature, Session 129, LD 1410
Committee: Labor and Housing
Sponsors: GIDEON, SANBORN, CARNEY, CUDDY, DOORE, FECTEAU, MORALES, SYLVESTER, CARSON

Legislative Document
No. 1410
H.P. 1023
House of Representatives, March 26, 2019
An Act To Create Paid Family and Medical Leave Benefits
Reference to the Committee on Labor and Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Speaker GIDEON of Freeport.
Cosponsored by Senator SANBORN, H. of Cumberland and
Representatives: CARNEY of Cape Elizabeth, CUDDY of Winterport, DOORE of Augusta, 
FECTEAU of Biddeford, McDONALD of Stonington, MORALES of South Portland, 
SYLVESTER of Portland, Senator: CARSON of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA c. 7, sub-c. 6-C is enacted to read:
SUBCHAPTER 6-C
PAID FAMILY AND MEDICAL LEAVE
§850-A.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings.
1.  Application year.  "Application year" means the 12-month period beginning on 
the first day of the calendar year in which an individual files an application for family 
leave or medical leave benefits.
2.  Average weekly wage.  "Average weekly wage," as used to establish the 
maximum weekly benefit amount for purposes of this subchapter, means 1/52 of 
aggregate total wages paid in the State for covered employment, as reported on employer 
contribution reports for the calendar year, divided by the arithmetic mean of midmonth 
weekly covered employment reported on employer contribution reports for the calendar 
year.
3.  Commissioner.  "Commissioner" means the Commissioner of Labor.
4.  Contributions.  "Contributions" means the payments made by an employee or 
self-employed individual to the fund, as required by this subchapter.
5.  Covered individual.  "Covered individual" means a person who: 
A.  Worked for 26 or more weeks for any employer during the 12-month period prior 
to submitting an application for family leave or medical leave or is a self-employed 
individual who elects coverage under this subchapter; and
B.  Meets the administrative requirements outlined in this subchapter and any rules 
adopted pursuant to this subchapter and submits an application for leave.
6.  Covered service member.  "Covered service member" means: 
A.  A member of the United States Armed Forces, including the National Guard and 
the Reserves of the United States Armed Forces, who is:
(1)  Undergoing medical treatment, recuperation or therapy or otherwise 
receiving outpatient treatment; or
(2)  Otherwise on the United States Armed Forces' temporary disability retired 
list for a serious injury or illness that was incurred by the member in the line of 
duty in the United States Armed Forces or a serious injury or illness that existed 
before the beginning of the member's active duty and was aggravated by service 
in the line of duty on active duty in the United States Armed Forces; or
B.  A former member of the United States Armed Forces, including the National 
Guard and the Reserves of the United States Armed Forces, who is undergoing 
medical treatment, recuperation or therapy for a serious injury or illness that was 
incurred by the member in the line of duty in the United States Armed Forces or a 
serious injury or illness that existed before the beginning of the member's active duty 
and was aggravated by service in the line of duty on active duty in the United States 
Armed Forces and manifested before or after the member was discharged or released 
from service.
7.  Department.  "Department" means the Department of Labor.
8.  Director.  "Director" means the director of the fund.
9.  Domestic partner.  "Domestic partner" has the same meaning as in section 843, 
subsection 7.
10.  Employee.  "Employee" means a person who may be permitted, required or 
directed by an employer in consideration of direct or indirect gain or profit to engage in 
any employment but does not include an independent contractor.
11.  Employer. "Employer" means:
A.  Any person, sole proprietorship, partnership, corporation, association or other 
business entity that employs employees at one location in this State;
B.  The State, including the executive, legislative and judicial branches, and a state 
department or agency; 
C.  A county, city, town or municipal agency; and
D.  An agent of an employer, the State or a political subdivision of the State. 
12.  Employment.  "Employment" means a service performed for wages. 
13.  Employment benefits.  "Employment benefits" means all benefits provided or 
made available to employees by an employer, including, but not limited to, group life 
insurance, health insurance, disability insurance, sick leave, annual or vacation leave, 
educational benefits and pensions.
14.  Family leave.  "Family leave" means leave taken pursuant to section 850-B, 
subsection 1.
15.  Family leave benefits.  "Family leave benefits" means wage replacement paid 
pursuant to sections 850-B and 850-C to a covered individual while the covered 
individual is on family leave.
16.  Family member.  "Family member" means, with respect to a covered individual 
or spouse or domestic partner of a covered individual:
A.  A child, including a child whose parentage has been determined under the Maine 
Parentage Act or any other biological child, adopted child, foster child or stepchild, 
or a child to whom the covered individual or spouse or domestic partner of the 
covered individual stands in loco parentis or a child the covered individual or spouse 
or domestic partner of the covered individual has under legal guardianship or any 
individual to whom the covered individual or spouse or domestic partner of the 
covered individual stood in any of these relationships when the individual was a 
minor child;
B.  A parent, including a legal parent, biological parent, adoptive parent, foster 
parent, stepparent, de facto parent or legal guardian or a person who stood in loco 
parentis when the covered individual or spouse or domestic partner of the covered 
individual was a minor child;
C.  A grandparent, including a legal grandparent, biological grandparent, adoptive 
grandparent, foster grandparent, stepgrandparent or de facto grandparent;
D.  A sibling, including a legal sibling, biological sibling, adoptive sibling, foster 
sibling, stepsibling or de facto sibling; and
E.  A spouse or domestic partner of a covered individual.
17.  Fund.  "Fund" means the Family and Medical Leave Insurance Fund established 
under section 850-E.
18.  Health care provider.  "Health care provider" means an individual licensed to 
practice medicine, surgery, dentistry, chiropractic, podiatry, midwifery or osteopathy or 
any other individual determined by the department to be capable of providing health care 
services.
19.  Medical leave. "Medical leave" means leave taken pursuant to section 850-B, 
subsection 2. 
20.  Medical leave benefits.  "Medical leave benefits" means wage replacement paid 
pursuant to sections 850-B and 850-C to a covered individual while the covered 
individual is on medical leave.
21.  Program.  "Program" means the family and medical leave benefits program 
established in section 850-B.
22.  Qualifying exigency.  "Qualifying exigency" means a need arising out of a 
covered individual's family member's active duty service or notice of an impending call 
or order to active duty in the United States Armed Forces, including, but not limited to, 
providing for the care or other needs of the military member's child or other family 
member, making financial or legal arrangements for the military member, attending 
counseling, attending military events or ceremonies, spending time with the military 
member during rest and recuperation leave or following return from deployment or 
making arrangements following the death of the military member.
23.  Self-employed individual.  "Self-employed individual" means a sole proprietor, 
a member of a limited liability company or limited liability partnership or an individual 
whose net profit or loss from a business must be reported to the Department of 
Administrative and Financial Services, Bureau of Revenue Services and resides in the 
State.
24.  Serious health condition.  "Serious health condition" means an illness, injury, 
impairment, pregnancy, recovery from childbirth or physical, mental or psychological 
condition that involves inpatient care in a hospital, hospice or residential medical care 
center or continuing treatment by a health care provider.
25.  Spouse.  "Spouse" has the same meaning as in Title 18-C, section 1-201, 
subsection 54.
26.  State average weekly wage.  "State average weekly wage" means the average 
weekly wage as published by the department for the State as a whole for the 12 most 
recently reported months.
27.  Wages. "Wages" means actual compensation paid to an employee for the 
performance of services.
28.  Weekly benefit amount.  "Weekly benefit amount" means the amount of wage 
replacement paid to a covered individual on a weekly basis while the covered individual 
is on family or medical leave as provided in section 850-C.
§850-B.  Family and medical leave benefits program established
The family and medical leave benefits program is established effective October 1, 
2020.  The program is administered by the department.
1.   Family leave eligibility.  Family leave is available to a covered individual for 
any of the following reasons:
A.  To bond with the covered individual's child during the first 12 months after the 
child's birth or the first 12 months after the placement of the child for adoption or 
foster care with the covered individual for a child born, adopted or placed on or after 
October 1, 2020;
B.  If the covered individual is caring for a family member with a serious health 
condition;
C.  Because of any qualifying exigency arising out of the fact that a family member 
of the covered individual is on active duty or has been notified of an impending call 
or order to active duty in the United States Armed Forces; 
D.  In order to care for a family member of the covered individual who is a covered 
service member; or
E.  Any other reason set forth in section 843, subsection 4.
2.  Medical leave.  Medical leave is available to a covered individual with a serious 
health condition that makes the covered individual unable to perform the job functions for 
the position held by that covered individual. 
3.  Leave requirements. The following requirements must be met.
A.  A covered individual is not eligible for more than 12 weeks of family leave in an 
application year, except that a covered individual taking family leave in order to care 
for a covered service member is eligible for up to 20 weeks of family leave in an 
application year.
B.  A covered individual is not eligible for medical leave for more than 20 weeks in 
an application year.
C.  A covered individual may not take more than 20 weeks, in the aggregate, of 
family leave and medical leave under this subchapter in the same application year.
This subsection does not prevent a covered individual from taking medical leave during 
pregnancy or recovery from childbirth if supported by documentation from a health care 
provider that is immediately followed by family leave, in which case the 5-day waiting 
period for family leave under section 850-C, subsection 1 is not required.
4.  Intermittent leave requirements.  Leave permitted by this section may not be 
taken by an employee intermittently or on a reduced leave schedule unless the employee 
and the employer agree otherwise.  An employee may take leave intermittently or on a 
reduced leave schedule when medically necessary if the employee is caring for a covered 
service member under subsection 1, paragraph D, has a serious health condition under 
subsection 2 or is caring for a family member with a serious health condition under 
subsection 1, paragraph B.  The taking of leave intermittently or on a reduced leave 
schedule pursuant to this subsection may not result in a reduction in the total amount of 
leave to which the covered individual is entitled under this subchapter.
5.  Weekly benefit. While on family leave or medical leave pursuant to this 
subchapter, a covered individual receives a weekly benefit amount as provided in section 
850-C.
6.  Restoration to previous position.  An employee who has taken family leave or 
medical leave must be restored to the position the employee held when the leave 
commenced or to an equivalent position, with the same status, pay, employment benefits, 
length of service credit and seniority.  An employee is not entitled to restoration under 
this subsection if the employee cannot be restored to the same position or an equivalent 
position because of conditions unrelated to the employee's exercise of rights under this 
subchapter.
7.  Right to benefits; accrual.  The taking of family leave or medical leave may not 
affect an employee's right to accrue vacation time, sick time, bonuses, advancement, 
seniority, length of service credit or other employment benefits, plans or programs. 
During the duration of an employee's family or medical leave, the employer shall 
continue to provide for and contribute to the employee's employment-related health 
insurance benefits, if any, at the level and under the conditions coverage would have been 
provided if the employee had continued working continuously for the duration of leave.
8.  Treatment of self-employed individuals. Subsections 6 and 7 do not apply to a 
self-employed individual taking family leave or medical leave under this subchapter or to 
a person who was a former employee when that person began taking family or medical 
leave under this subchapter.
9.  Collective bargaining.  This subchapter does not:
A.  Obviate an employer's obligations to comply with any employer policy, law or 
collective bargaining agreement that provides for greater or additional rights to leave 
than those provided by this subchapter;
B.  In any way curtail the rights, privileges or remedies of any employee under any 
collective bargaining agreement or employment contract; or
C.  Allow an employer to compel an employee to exhaust rights to any sick, vacation 
or personal time prior to or while taking leave under this subchapter.
10.  Concurrent with leave under state and federal law.  Leave taken under this 
subchapter runs concurrently with leave taken under the federal Family and Medical 
Leave Act of 1993, 29 United States Code, Section 2611, et seq., and under subchapter 
6-A.  Employees may take leave under this subchapter while ineligible for leave under 
the Family and Medical Leave Act of 1993 in the same application year.
11.  Election of coverage by self-employed individual.  A self-employed individual 
may elect coverage under this subchapter and become a covered individual for an initial 
period of not less than 3 years by filing a notice of election in writing with the department 
and making contributions as required in section 850-E, subsection 6 to the fund.  A self-
employed individual who elects coverage under this subsection is not eligible for benefits 
until that individual has made the required contributions for at least 2 calendar quarters of 
the individual's last 4 completed calendar quarters. The election becomes effective on the 
date of filing of the notice. The department shall establish a process by which self-
employed individuals elect coverage under this subchapter.
§850-C.  Payment of benefits
1.  Waiting period.  No family leave or medical leave benefits are payable during the 
first 5 calendar days of the leave, except that an employee may use accrued sick or 
vacation pay or other paid leave provided under a collective bargaining agreement or 
employer policy during the first 5 calendar days of the leave.
2.  Payment for waiting period.  If a covered individual uses 10 or more days of 
family leave or medical leave benefits in an application year, the covered individual must 
be paid for the waiting period described in subsection 1.  The department may impose a 
waiting period on a covered individual only once every application year.
3.  Determination of weekly benefit amount. The weekly benefit amount for 
employees and self-employed individuals on family leave or medical leave is determined 
as follows: 
A.  The portion of an employee's or self-employed individual's average weekly wage 
that is equal to or less than 50% of the state average weekly wage must be replaced at 
a rate of 90%; and
B.  The portion of an employee's or self-employed individual's average weekly wage 
that is more than 50% of the state average weekly wage must be replaced at a rate of 
67%.
4.  Maximum benefit amount adjustment.  The maximum weekly benefit amount 
calculated under subsection 3 is 100% of the state average weekly wage.  By October 1, 
2021 and annually thereafter, the commissioner shall adjust the maximum weekly benefit 
amount as necessary, and the adjusted maximum weekly benefit amount takes effect on 
January 1st of the year following the adjustment.
5.  Prorated benefit. If a covered individual takes family leave or medical leave on 
an intermittent or reduced leave schedule, the weekly benefit amount must be prorated as 
determined by the department.
6.  Reduction of benefit.  The weekly benefit amount must be reduced by the amount 
of wages or wage replacement that a covered individual receives for that period under any 
of the following while on family leave or medical leave:
A.  A government program or law, including, but not limited to, workers' 
compensation under Title 39-A, other than for permanent partial disability incurred 
prior to the family leave or medical leave claim, or under other state or federal 
temporary or permanent disability benefits law; or
B.  A permanent disability policy or program of an employer.
7.  Temporary disability or employer paid leave benefit.  The weekly benefit 
amount may not be reduced by the amount of wage replacement that an employee 
receives while on family leave or medical leave under the following conditions:
A.  A temporary disability policy or program of an employer; or
B.  A paid family leave or medical leave policy of an employer.
§850-D.  Filing for benefits
1.  Claim.  A covered individual shall file a benefit claim pursuant to any rules 
adopted by the department. If a claim is filed more than 90 calendar days after the start of 
leave, the covered individual may receive reduced benefits. All claims must include a 
certification submitted in accordance with this section supporting a request for leave 
under this subchapter. The department shall establish good-cause exemptions from the 
certification requirement deadline in the event that a serious health condition of the 
covered individual prevents the covered individual from providing the required 
certification within the 90 calendar days.
2.  Certification for medical leave of covered individual. The certification for a 
covered individual taking medical leave is sufficient if it states the date on which the 
serious health condition commenced, the probable duration of the condition and the 
appropriate medical facts within the knowledge of the health care provider as required by 
the department.
3.  Certification for family leave; serious health condition of family member.  
The certification for a covered individual taking family leave because of a serious health 
condition of a family member is sufficient if it states the date on which the serious health 
condition commenced, the probable duration of the condition, the appropriate medical 
facts within the knowledge of the health care provider as required by the department, a 
statement that the covered individual is needed to care for the family member and an 
estimate of the amount of time that the covered individual is needed to care for the family 
member.
4.  Certification for family leave; birth of child. The certification for a covered 
individual taking family leave because of the birth of a child of the covered individual is 
sufficient if the covered individual provides either the birth certificate or a document 
issued by the health care provider of the child or of the person who gave birth stating the 
child's birth date.
5.  Certification for family leave; adoption or foster care.  The certification for a 
covered individual taking family leave because of the placement of a child with the 
covered individual for adoption or foster care is sufficient if the covered individual 
provides a document that confirms the placement and date of placement issued by the 
health care provider of the child, by an adoption or foster care agency involved in the 
placement or by other persons as determined by the department.  If the status of a covered 
individual as an adoptive or foster parent changes while an application for benefits is 
pending or while the covered individual is receiving benefits, the covered individual shall 
notify the department of the change in writing. The Department of Health and Human 
Services may confirm in writing the status of the covered individual as an adoptive or 
foster parent while an application for benefits is pending or while a covered individual is 
receiving benefits.
6.  Certification for family leave; qualifying exigency.  The certification for a 
covered individual taking family leave because of a qualifying exigency is sufficient if it 
includes a copy of the family member's active duty orders, other documentation issued by 
the United States Armed Forces or other documentation permitted by the department.
7.  Certification for family leave; covered service member. The certification for a 
covered individual taking family leave to care for a family member who is a covered 
service member is sufficient if it includes: 
A.  The date on which the serious health condition commenced;
B.  The probable duration of the serious health condition;
C.  The appropriate medical facts within the knowledge of the covered service 
member's health care provider as required by the department;
D.  A statement that the covered individual is needed to care for the family member;
E.  An estimate of the amount of time that the covered individual is needed to care for 
the family member; and
F.  An attestation by the covered individual that the serious health condition is 
connected to the covered service member's military service as required by this 
subchapter.
8.  Certification for leave for other reason.  The certification for a covered 
individual taking family leave based on a reason set forth in section 843, subsection 4 is 
sufficient if it states the reason for the leave, the probable duration of the amount of time 
needed for leave and any other documentation required by the department.
9.  Confidentiality.  Any medical or health information required under this section 
must be treated as confidential and may not be disclosed except with permission from the 
covered individual who provided it unless disclosure is otherwise required by law. 
Nothing in this section may be construed to require a covered individual to provide as 
certification any information from a health care provider that would be in violation of 
Section 1177 of the federal Social Security Act, 42 United States Code, Section 1320d-6.
10.  Ineligibility.  A covered individual is not eligible to receive family leave or 
medical leave benefits if the department finds, through a process established by rule, that 
the covered individual, for the purpose of obtaining these benefits, has willfully made a 
false statement or misrepresentation regarding a material fact or has willfully withheld a 
material fact concerning the facts required to be certified pursuant to this section.  The 
department shall establish a process by rule for the determination of eligibility under this 
section, including a grievance process for a covered individual determined to be 
ineligible.
§850-E.  Family and Medical Leave Insurance Fund 
1.  Fund established.  The Family and Medical Leave Insurance Fund is established 
to carry out the purposes of this subchapter. The fund is administered by the Treasurer of 
State. Any sums received under this section are not considered revenue of the State, but 
must be held in trust for the exclusive benefit of covered individuals eligible for benefits 
under this subchapter and for the administration of this subchapter by the department. 
Funds may not be expended, released, appropriated or otherwise disposed of for any other 
purpose and must be expended by the director as required by this subchapter to pay 
family leave and medical leave benefits to covered individuals eligible to receive benefits 
and to pay the administrative costs of the department.
2.  Deposits in fund.  The fund consists of:
A.  Contributions collected pursuant to subsection 6 together with any interest earned 
thereon;
B.  Property or securities acquired through the use of money belonging to the fund 
together with any earnings of such property or securities;
C.  Fines and penalties collected under this subchapter; and
D.  Any other money received from any source, including grants, gifts, bequests or 
money specifically designated to be credited to the fund.
3.  Annualized amount.  The fund must maintain an annualized amount of not less 
than 140% of the previous fiscal year's expenditures for benefits paid and for the 
administration of the program by the department.
4.  Administrative costs.  The costs of administering the program by the department 
may not exceed 5% of the amount deposited under subsection 2 for each fiscal year 
following the initial year benefits are paid. Money may not be commingled with other 
state funds and must be maintained in a separate account.
5.  Payment of benefits.  The director shall expend money from the fund to provide 
weekly benefits under section 850-C. Family leave and medical leave benefits must be 
paid from the fund to covered individuals eligible for benefits. An employer's bankruptcy 
or noncompliance with this subchapter does not interfere with an employee's ability to 
collect family and medical leave benefits under this subchapter. Family or medical leave 
benefits paid from the fund to such an employee may be recovered through bankruptcy 
proceedings or from the noncomplying employer. The director shall institute 
administrative and legal action to recover family and medical leave benefits paid through 
the fund.
6.  Contributions.  To accumulate funds for the payment of family leave and medical 
leave benefits and administrative costs, payroll contributions must be paid by employees 
in an amount determined by 0.55% of wages except that wages below $12,000 in a 12-
month period are not subject to the contribution required by this subsection. In no case 
may payroll contributions exceed 0.55% of wages in any 12-month period. The 
department is responsible for evaluating and determining on an annual basis the amount 
of payroll contributions and maximum employee contribution necessary to finance the 
program.  This subsection does not prohibit an employer from making a contribution on 
behalf of an employee through a collective bargaining agreement or as part of an 
employer's employment benefits.
7.  Report.  Annually, by October 1st, the director shall publish a report providing 
the following information concerning the program for the previous fiscal year: 
A.  The total eligible claims;
B.  The percentage of such claims attributable to medical leave;
C.  The percentage of such claims attributable to family leave for the serious health 
condition of a family member;
D.  The percentage of such claims attributable to family leave other than for the birth, 
adoption or fostering of a child;
E.  The percentage of such claims attributable to family leave for the birth, adoption 
or fostering of a child;
F.  The percentage of such claims attributable to family leave for a qualifying 
exigency;
G.  The percentage of such claims attributable to family leave for a covered service 
member;
H.  The claimant demographics by age, gender identification, average weekly wage, 
occupation and the type of leave taken;
I.  The percentage of claims denied and the reasons for the denials;
J.  The average weekly benefit amount paid for all claims and by category of leave; 
and 
K.  Any changes in gross benefits paid compared to previous fiscal years.
§850-F.  Notice
1.  Posted notice.  An employer shall post in a conspicuous place on each of its 
premises a workplace notice provided or approved by the department providing notice of 
benefits available under this subchapter. The department shall issue the workplace notice 
in English, Spanish, French, Somali, Portuguese and any other language that is the 
primary language of at least 2,000 residents of the State. The employer shall post the 
workplace notice in English and each language other than English that is the primary 
language of 3 or more employees of that workplace, if such notice is available from the 
department.
2.  Written notice.  An employer shall issue to each employee not more than 30 days 
from the beginning date of the employee's employment the following written information 
provided or approved by the department in the employee's primary language:
A.  An explanation of the availability of family leave and medical leave benefits 
provided under this subchapter, including rights to reinstatement and continuation of 
health insurance;
B.  The employee's contribution amount and obligations under this subchapter;
C.  The name and mailing address of the employer;
D.  The identification number assigned to the employer by the department;
E.  Instructions on how to file a claim for family leave or medical leave benefits;
F.  The mailing address, e-mail address and telephone number of the department; and
G.  Any other information deemed necessary by the department.
The employee shall provide written acknowledgment of receipt of information or sign a 
statement indicating the employee's refusal to sign the acknowledgement.
3.  Failure to comply.  An employer that fails to comply with this section must be 
assessed, for a first violation, a civil penalty of $50 per employee and $150 per employee 
for each subsequent violation. The employer has the burden of demonstrating compliance 
with this section.
4.  Notice to employer.  An employee shall give at least 30 days' notice to the 
employer of the anticipated starting date of leave, the anticipated length of leave and the 
expected date of return or shall provide notice as soon as practicable if the delay is due to 
exigent circumstances or for reasons beyond the employee's control. If an employer fails 
to provide notice as required under this section, the employee's obligation to provide 
notice under this subsection is waived.
§850-G.  Prohibited practices
1.  Retaliation prohibited.  It is unlawful for an employer to retaliate by discharging, 
firing, suspending, expelling or disciplining, through the application of attendance 
policies or otherwise, or threatening or in any manner discriminating against an employee 
for exercising any right to which the employee is entitled under this subchapter or with 
the purpose of interfering with the exercise of any right to which the employee is entitled 
under this chapter.
2.  Change in status.  An employer may not make any negative change in the 
seniority, status, employment benefits, pay or other terms or conditions of employment of 
an employee who applies and qualifies for family leave or medical leave benefits under 
this subchapter.
3.  Enforcement; violation.  The department shall take enforcement action against 
an employer for a violation of this section.
§850-H.  Appeals
1.  Process for appeals.  The director shall establish a system for appeals in the case 
of a denial of family leave or medical leave benefits. In establishing the system, the 
director may use any procedures or appeals mechanisms established under chapter 13.
2.  Judicial review.  Judicial review of any decision with respect to family leave or 
medical leave benefits must be permitted in a court of competent jurisdiction after a party 
aggrieved by the decision has exhausted all administrative remedies established by the 
director.
3.  Information related to appeals; confidentiality.  The director shall implement 
procedures to ensure confidentiality, to the maximum extent permitted by applicable 
laws, of all information related to any claims filed or appeals taken under this subchapter.
§850-I.  Disqualification of covered individual
1.  False statement; misrepresentation.  A covered individual is disqualified from 
family leave and medical leave benefits for one year if the individual is determined by the 
director to have willfully made a false statement or misrepresentation regarding a material 
fact, or willfully failed to report a material fact, to obtain benefits under this subchapter.
2.  Erroneous payment.  If family leave or medical leave benefits are paid 
erroneously or as the result of willful misrepresentation or a claim for family or medical 
leave benefits is rejected after benefits are paid, the department may seek repayment of 
benefits from the recipient. The director shall exercise discretion to waive, in whole or in 
part, the amount of any such payments if the recovery would be against equity and good 
conscience.
§850-J.  Tax treatment
1.  Federal tax.  If the federal Internal Revenue Service determines that family leave 
or medical leave benefits under this subchapter are subject to federal income tax, the 
department must advise an individual filing a new claim for family or medical leave 
benefits, at the time the individual files the claim, that:
A.  The federal Internal Revenue Service has determined that benefits are subject to 
federal income tax;
B.  Requirements exist pertaining to estimated tax payments;
C.  The individual may elect to have federal income tax deducted and withheld from 
the individual's payment of benefits in the amount specified in the United States 
Internal Revenue Code of 1986; and
D.  The individual is permitted to change a previously elected withholding status.
2.  Withholding of federal income tax payments.  If an individual elects to have 
federal income tax payments withheld from the individual's family leave or medical leave 
benefits payments, the department shall deduct and withhold the amount specified in the 
United States Internal Revenue Code of 1986 in a manner consistent with the 
requirements in Title 36.  Amounts deducted and withheld from benefits must remain in 
the fund until transferred to the federal taxing authority as a payment of income tax.
3.  Conformity to Internal Revenue Service procedures.  The department shall 
follow all procedures specified by the federal Internal Revenue Service pertaining to the 
deducting and withholding of income tax.
§850-K.  Data collection and technology
The department shall use state data collection procedures and technology to the 
extent possible to integrate the program with existing state policies.
§850-L.  Implementation
Contributions begin January 1, 2021 to provide funds for the fund. The department 
shall begin processing claims beginning January 1, 2022.
The department shall establish reasonable procedures and forms for filing claims for 
benefits under this subchapter and shall specify what supporting documentation is 
necessary to support a claim for benefits, including documentation required from a health 
care provider for proof of a serious health condition.
§850-M.  Rulemaking
The department may adopt rules as necessary to implement this subchapter.  Rules 
adopted pursuant to this subchapter are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A.
§850-N.  Effect of existing employer benefits for family and medical leave
This subchapter may not be construed to prohibit an employee entitled to receive 
benefits for family or medical leave under a collective bargaining agreement or employer 
policy from also receiving benefits under this subchapter as long as the employee is 
otherwise eligible for benefits under this subchapter.
SUMMARY
This bill establishes a paid family and medical leave benefits program administered 
by the Department of Labor.  The program provides up to 12 weeks of family leave and 
up to 20 weeks of medical leave to eligible covered individuals.  No more than 20 weeks 
of family leave and medical leave in the aggregate may be taken in a 12-month period.  
An individual is eligible for leave under the program after working 26 weeks or more for 
any employer in the 12 months prior to submitting an application or if the individual is 
self-employed and has elected to be part of the program.
The maximum weekly benefit amount is capped at 100% of the state average weekly 
wage.  The weekly benefit amount is 90% of the portion of the covered individual's 
average weekly wage that is equal to or less than 50% of the state average weekly wage 
and 67% of the portion of the covered individual's average weekly wage that is more than 
50% of the state average weekly wage.
Covered individuals are required to file claims for benefits in accordance with rules 
adopted by the department and to provide certification that they qualify for family leave 
or medical leave.
This bill establishes the Family and Medical Leave Insurance Fund to support the 
program.  The funds for administrative costs and payment of benefits will come from 
payroll contributions by employees.
The bill requires payroll contributions to begin January 1, 2021, and benefits will be 
paid out beginning January 1, 2022.