This Act shall be called the “Flexible Sick Leave Act.”

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section:

1. “Child” means a biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis who is:

2. “Grandparent” means a parent of a parent.

3. “Parent” means a biological parent or an individual who stood in loco parentis when a person was a child.

4. “Parent-in-law” means a parent of the spouse.

5. “Sick leave or other paid time off” means time allowed under the terms of a collective bargaining agreement or employer policy, as applicable, to an employee for illness, vacation, or personal holiday.

6. “Spouse” means a husband, wife or domestic partner.

1. If, under the terms of an employment contract, a collective bargaining agreement or employer policy, an employee is entitled to sick leave or other paid time off, then the employer shall allow the employee to use any or all of the employee’s choice of sick leave or other paid time off to care for:

2. An employee may not exercise a right under this section to take leave until it has been earned. The employee taking leave under the circumstances described in this section must comply with the terms of the collective bargaining agreement or employer policy applicable to the leave, except for any terms which contradict this section.

1. This section shall be enforced by [appropriate state agency], which shall promulgate such regulations as are necessary to implement and administer compliance. Regulations shall include procedures to receive, investigate and attempt to resolve complaints; and bring actions in any court of competent jurisdiction to recover appropriate relief for aggrieved employees.

2. An employer shall not discharge, threaten to discharge, demote, suspend, discipline, or otherwise discriminate against an employee because the employee exercised, or attempted to exercise, any right under this section, or filed a complaint, testified, or assisted in any proceeding to enforce this section.

This Act shall take effect on July 1, 2004.

This Act shall be called the “Family Leave Benefits Insurance Act.”

(A) FINDINGS—The legislature finds:

1. Although family leave laws have assisted employees to balance the demands of the workplace with their family responsibilities, more needs to be done to achieve the goals of workforce stability and economic security.

2. Many employees do not have access to family leave, and those who do may not be in a financial position to take leave that is unpaid.

3. Employer-paid benefits meet only a small part of this need.

4. The establishment of paid family leave benefits will reduce the impact on state income-support programs by increasing the ability of workers to recover from illness or provide caregiving services for family members while maintaining employment.

(B) PURPOSE—This law is enacted to establish a Family Leave Benefits Insurance Program to provide limited income support for a reasonable period while an employee is away from work on family leave, a policy which protects the health and safety of [STATE] residents and strengthens the [STATE] economy.

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section:

1. “Application year” means the 12-month period beginning on the first day of the calendar week in which an employee files an application for family leave benefits and, thereafter, the 12-month period beginning with the first day of the calendar week in which the employee files a subsequent application for family leave benefits after the expiration of the employee’s last preceding application year.

2. “Child” means a person who is a biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis, and who is:

3. “Department” means the [Department of Labor].

4. “Employer” means the same as the definition in [cite workers compensation law] and the state and its political subdivisions.

5. “Employment” means the same as the definition in [cite workers compensation law].

6. “Family leave” means leave taken by an employee who is temporarily disabled and unavailable to work because she or he has to care for a newborn, newly-adopted or foster child (and leave is completed within 12 months after the birth or the placement of the child for foster care or adoption), to care for a family member who has a serious health condition, or because of the employee’s own serious health condition, making them unable to perform the functions of the employee’s position.

7. “Family member” means a child, spouse, domestic partner or the parent of the employee or employee’s spouse or domestic partner.

8. “Healthcare provider” means a person licensed as a physician under [cite applicable code section].

9. “Parent” means a biological or adoptive parent, a stepparent, or a person who stood in loco parentis to an employee or an employee’s spouse or domestic partner.

10.“Premium” means the money payments required by this chapter to be made to the Department for the Family Leave Benefits Insurance Account.

11. “Qualifying year” means the first four of the last five completed calendar quarters or the last four completed calendar quarters immediately preceding the first day of the employee’s application year.

12. “Serious health condition” means an illness, injury, impairment, or physical or mental condition that involves inpatient care in a hospital, hospice, or residential medical care facility, or continuing treatment by a healthcare provider.

1. The Department shall establish and administer a Family Leave Benefits Insurance Account, and establish procedures and forms for filing benefit claims. The Department shall notify the employer within two business days of a claim being filed.

2. The Department may require that a claim for benefits under this chapter be supported by a certification issued by a healthcare provider who is providing care to the employee or the employee’s family member, as applicable.

3. Information contained in the files and records pertaining to an employee under this chapter is confidential and not open to public inspection, other than to public employees in the performance of their official duties. However, the employee or an authorized representative of an employee may review the records or receive specific information from the records on the presentation of the signed authorization of the employee. An employer or the employer’s duly authorized representative may review the records of an employee in connection with a pending claim. At the Department’s discretion, other persons may review records when such persons are rendering assistance to the Department at any stage of the proceedings on any matter pertaining to the administration of this chapter.

(C) QUALIFYING FOR FAMILY LEAVE BENEFITS—Family leave benefits are payable to an employee during a period in which the employee is on unpaid family leave if the employee:

1. Files a claim for benefits as required by rules adopted by the Department.

2. Has been employed for at least 520 hours during the employee’s qualifying year.

3. Establishes an application year. An application year may not be established if the qualifying year includes hours worked before establishment of a previous application year.

4. Documents that he or she has provided the employer from whom family leave is to be taken with written notice of his or her intention to take family leave as follows:

5. Discloses whether or not she or he owes child support obligations.

1. An employee is disqualified from family leave insurance benefits beginning with the first day of the calendar week, and continuing for the next 52 consecutive weeks, if the employee:

2. Benefits are not payable for any weeks in which compensation is payable to the employee under Title XXX or another federal or state workers compensation program.

3. An employee is not disqualified for benefits for any week when there is a strike or lockout at the factory, establishment, or other premises at which the employee is or was last employed.

1. In an application year, family leave benefits are payable for a maximum of 12 weeks.

2. The first payment of benefits shall be made to an employee within two weeks after the claim is filed or the family leave began, whichever is later. Subsequent payments must be made twice a month thereafter.

3. Family leave benefits shall be paid as follows:

4. If family leave benefits are paid erroneously or as a result of fraud, or if a claim for benefits is rejected after benefits are paid, the Department shall seek repayment of benefits from the recipient.

5. If an employee dies before receiving payment of benefits, the payment shall be made by the Department to the surviving spouse or the child or children if there is no surviving spouse. If there is no surviving spouse and no child or children, the payment shall be made and distributed consistent with the terms of the decedent’s will or, if the decedent dies intestate, consistent with the terms of [insert appropriate citation].

1. Nothing in this chapter shall be construed to limit an employee’s right to leave from employment under other laws or employer policy.

2. If an employer provides paid family leave or an employee is covered by disability insurance, the employee may elect whether first to use the paid family leave or to receive temporary disability benefits. An employee may not be required to use his or her paid family leave to which she or he is entitled before receiving benefits under this chapter.

3. An employer may require that family leave for which an employee is receiving or received benefits under this chapter be taken concurrently with leave under the federal Family and Medical Leave Act or other applicable federal, state or local law, except that:

4. This entitlement is supplementary to a federal, state or local law establishing a similar entitlement, and if a federal, state or local law applying to the employee establishes a more favorable right to return to his or her position than is established under this section, the application of that federal, state or local law is not affected by this section.

5. An employee who has received benefits under this chapter shall not lose any employment benefit, including seniority or pension rights accrued before the date that family leave commenced. However, this chapter does not entitle an employee to accrue employment benefits during a period of family leave or to a right, benefit or position of employment other than a right, benefit or position to which the employee would have been entitled had the employee not taken family leave.

6. This chapter is not to be construed to diminish an employer’s obligation to comply with a collective bargaining agreement or an employment benefit program or plan that provides greater benefits to employees than family leave insurance benefits provided under this chapter.

7. An agreement by an employee to waive his or her rights under this chapter is void as against public policy. The benefits provided to employees under this chapter may not be diminished by a collective bargaining agreement or an employment benefit program or plan entered into or renewed after the effective date of this section.

(G) ELECTION OF COVERAGE

1. An employer of employees not covered by this chapter or a self-employed person may elect coverage under the Family Leave Benefits Insurance Program for an initial period of not less than three years or a subsequent period of not less than one year immediately following another period of coverage. The employer or self-employed person must file a notice of election in writing with the Department. The election becomes effective on the date of filing the notice.

2. An employer or self-employed person who has elected coverage may withdraw from coverage within 30 days after the end of the three-year period of coverage, or at such other times as the Department may prescribe by rule, by filing written notice with the Department. Such withdrawal shall take effect not sooner than 30 days after the filing of the notice.

3. The Department may cancel elective coverage if the employer or self-employed person fails to provide required payments or reports. The Department may collect due and unpaid premiums and may levy an additional premium for the remainder of the period of coverage. The cancellation shall be effective no later than 30 days from the date of the notice in writing advising the employer or self-employed person of the cancellation.

1. The Department shall specify the forms and times for employers to provide reports, furnish information and remit premiums. If the employer is a temporary services agency that provides employees on a temporary basis to its customers, the temporary services agency is considered the employer for purposes of this section. However, if the temporary services agency fails to remit the required premiums, the customer to whom the employees were provided is liable for paying the premiums.

2. An employer must keep at its place of business a record of employment from which the information needed by the Department for purposes of this chapter may be obtained. This record shall at all times be open to the inspection of the Department pursuant to rules promulgated by the Department.

3. Information obtained from employer records under this chapter is confidential and not open to public inspection, other than to public employees in the performance of their official duties. However, an interested party shall be supplied with information from employer records to the extent necessary for the proper presentation of the case in question. An employer may authorize inspection of its records by written consent.

1. When an employer quits business, or sells out, exchanges, or otherwise disposes of the business or stock of goods, any premium payable under this chapter is immediately due and payable, and the employer must, within 10 days thereafter, make a return and pay the premium due. Any person who becomes a successor to the business is liable for the full amount of the premium and must withhold from the purchase price a sum sufficient to pay any premium due from the employer until the employer produces a receipt from the Department showing payment in full of any premium due or a certificate that no premium is due and, if the premium is not paid by the employer within 10 days from the date of the sale, exchange, or disposal, the successor is liable for the payment of the full amount of premium. The successor’s payment thereof is, to the extent thereof, a payment upon the purchase price, and if the payment is greater in amount than the purchase price, the amount of the difference is a debt due the successor from the employer.

2. A successor is not liable for any premium due from the person from whom the successor has acquired a business or stock of goods if the successor gives written notice to the Department of the acquisition and no assessment is issued by the Department within 180 days of receipt of the notice against the former operator of the business and a copy is mailed to the successor.

1. The Family Leave Benefits Insurance Account is created in the custody of the [state treasurer]. All receipts from the premium or penalties imposed under this chapter must be deposited in the account. Expenditures from the account may be used only for the purposes of the Family Leave Benefits Insurance Program.

2. Each employer shall retain from the earnings of each employee a premium of one cent per hour worked, up to a maximum of 40 hours per week. The employer shall match the amount retained by an equal amount, and the money retained shall be paid to the Department in the manner and at such intervals as the Department directs for deposit in the Family Leave Benefits Insurance Account.

3. The Department shall adjust the amount of the premium from time to time to ensure that the amount is the lowest rate necessary to pay family leave benefits and administrative costs, and maintain actuarial solvency in accordance with recognized insurance principles.

4. The Department may adopt rules to permit an employee with multiple employers and his or her employers to petition for refunds or credits of amounts paid to the Department for hours in excess of 40 hours per week worked by the employee.

(K) TAXATION OF FAMILY LEAVE BENEFITS—The Department must advise an employee filing a new claim for family leave benefits, at the time of filing such claim, that:

(L) NO DISCRIMINATION AGAINST CLAIMANTS—An employer, temporary services agency, employment agency, employee organization, or other person may not discharge, expel, or otherwise discriminate against a person because he or she has filed or communicated to the employer an intent to file a claim, a complaint, or an appeal, or has testified or is about to testify or has assisted in any proceeding under this chapter.

(N) RULES AND REGULATIONS—The Department may adopt rules as necessary to implement this chapter. In adopting rules, the Department shall maintain consistency with the rules adopted to implement the federal Family and Medical Leave Act, to the extent such rules are not in conflict with this chapter.

The sum of $XXXXXX is appropriated for the purposes of administering the Family Leave Benefits Insurance Program. This sum shall be repaid from the Family Leave Benefits Insurance Account by June 30, 2005.

The provisions of this Act shall be severable, and if any phrase, clause, sentence, or provision is declared to be invalid or is preempted by federal law or regulation, the validity of the remainder of this Act shall not be affected.

This Act shall take effect on July 1, 2004.