Regular Session 2023-2024 House Bill 0181 P.N. 1461

PRIOR PRINTER'S NO. 139

PRINTER'S NO. 1461

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

181

Session of

2023

INTRODUCED BY D. MILLER, BENHAM, SCHLOSSBERG, DELLOSO, SIEGEL,

GUENST, HARKINS, SANCHEZ, VENKAT, MADDEN, BURGOS, GALLOWAY,

FIEDLER, KRAJEWSKI, FREEMAN, STURLA, KINKEAD, FRANKEL, OTTEN,

O'MARA, HOHENSTEIN, WEBSTER, BOROWSKI, McNEILL, KHAN,

D. WILLIAMS, T. DAVIS, DALEY, WARREN, SHUSTERMAN, ISAACSON,

TOMLINSON AND WAXMAN, MARCH 8, 2023

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 6, 2023

AN ACT

Establishing the Family and Medical Leave Insurance Program and

the Family and Medical Leave Insurance Fund; conferring

powers and imposing duties on the Department of Labor and

Industry; and imposing penalties.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Legislative intent.

Section 103. Definitions.

Chapter 3. Family and Medical Leave Insurance Program

Section 301. Family and Medical Leave Insurance Program.

Section 302. Powers and duties of department.

Section 303. Eligibility for family and medical leave insurance

benefits.

Section 304. Duration of benefits.

Section 305. Amount of benefits.

Section 306. Contributions.

Section 307. Reduced leave schedule.

Section 308. Employment protections.

Section 309. Coordination of benefits.

Chapter 5. Administration and Procedures

Section 501. Notice.

Section 502. Erroneous payments and disqualification for

benefits.

Section 503. Elective coverage.

Section 504. Violations.

Section 505. Judicial review.

Section 506. Family and Medical Leave Insurance Fund.

Section 507. Annual report.

Section 508. Public education.

Section 509. Board.

Section 510. Regulations.

SECTION 511. RIGHT OF ACTION.

Chapter 21. Miscellaneous Provisions

Section 2101. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

This act shall be known and may be cited as the Family and

Medical Leave Insurance Act.

Section 102. Legislative intent.

The General Assembly finds and declares as follows:

(1) Paid family and medical leave insurance promotes the

physical and emotional health of children and their families.

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(2) Paid family and medical leave insurance has a

positive impact on economic stability and ensures competitive

viability for all businesses, but particularly smaller

businesses.

(3) The establishment of a paid family and medical leave

insurance program is essential to public health, safety and

welfare.

Section 103. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Application year." The 12-month period beginning on the

first day of the calendar week in which an individual files a

claim for family and medical leave insurance benefits.

"Benefits." The monetary allowances payable to a covered

individual as family and medical leave insurance during an

approved family and medical leave under the program in

accordance with this act.

"Board." The Family and Medical Leave Insurance Advisory

Board established under section 509.

"Claim." The filing of a written application with the

department for the receipt of benefits.

"Covered individual." An employee, or a self-employed person

who elects coverage in accordance with section 503, who meets

the following requirements, as applicable:

(1) Is currently employed in this Commonwealth or was

previously employed in this Commonwealth within 120 days of

separation from employment.

(2) Meets the employment and income eligibility

requirements specified in section 303.

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(3) Meets the requirements of this act as to the receipt

of benefits.

(4) Submits a claim that is approved by the department.

"Covered service member." A current or former member of the

armed forces of the United States, including a current or former

member of a reserve component of the armed forces of the United

States or the Pennsylvania National Guard, who meets any of the

following requirements:

(1) Is undergoing medical treatment, recuperation or

therapy.

(2) Is otherwise in outpatient status.

(3) Is on the temporary disability retired list for a

serious injury or illness incurred in the line of duty on

active duty in the armed forces of the United States or a

serious injury or illness that existed before the beginning

of the member's active duty that was aggravated by service in

the line of duty on active duty in the armed forces of the

United States, a reserve component of the armed forces of the

United States or the Pennsylvania National Guard.

"Department." The Department of Labor and Industry of the

Commonwealth.

"Employee." An individual who is employed by an employer

doing business in this Commonwealth. THE TERM INCLUDES A SELF-

EMPLOYED INDIVIDUAL.

"Employer." An employer as defined in section 103 of the

Workers' Compensation Act.

"Family." Includes any of the following:

(1) A biological child, adopted or foster child,

stepchild or legal ward, a child of a domestic partner or a

child to whom an employee stands in loco parentis, regardless

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of age.

(2) A biological parent, foster parent, stepparent or

adoptive parent or legal guardian of an employee or an

employee's spouse or domestic partner or an individual who

stood in loco parentis when the employee or the employee's

spouse or domestic partner was a minor child.

(3) An individual to whom the employee is legally

married under the laws of any state or a domestic partner of

an employee as registered under the laws of any state or

political subdivision.

(4) A grandparent, grandchild or sibling whether of a

biological, foster, adoptive or step relationship, of the

employee or the employee's spouse or domestic partner.

(5) An individual for whom the employee is responsible

for providing or arranging care, including helping that

individual obtain diagnostic, preventive, routine or

therapeutic health treatment.

(6) Any other individual whose close association with

the employee is the equivalent of an immediate family

relationship.

(5) AN INDIVIDUAL WHO REGULARLY RESIDES IN THE

EMPLOYEE'S HOME OR WHERE THE RELATIONSHIP CREATES AN

EXPECTATION THAT THE EMPLOYEE CARES FOR THE INDIVIDUAL AND

THAT THE INDIVIDUAL DEPENDS ON THE EMPLOYEE FOR CARE. THE

TERM DOES NOT INCLUDE AN INDIVIDUAL WHO SIMPLY RESIDES IN THE

SAME HOME WITH NO EXPECTATION THAT THE EMPLOYEE CARE FOR THE

INDIVIDUAL.

"Family and medical leave insurance." Benefits approved and

payable to covered individuals under the program.

"Fund." The Family and Medical Leave Insurance Fund

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established under section 506.

"Health care provider." A health care center or a person,

including a corporation, university or other educational

institution licensed or approved by the Commonwealth to provide

health care or professional medical services, including a

physician, a certified nurse midwife, a mental health care

provider, a hospital, a nursing home, a birth center or any

other person determined by the department to be providing health

care services.

"Leave." The allotted amount of time approved by the

department for the receipt of benefits under this act.

"Medical certification." Written certification from a health

care provider on a form prepared by the department that verifies

the serious health condition prompting the filing of a claim and

receipt of benefits by a covered individual under this act.

"Program." The Family and Medical Leave Insurance Program

established under section 301.

"Qualifying exigency leave." Leave for the family member of

a military member deployed at home or abroad for the purposes

specified in 29 CFR 825.126 (relating to leave because of a

qualifying exigency).

"Secretary." The Secretary of Labor and Industry of the

Commonwealth.

"Serious health condition." An illness, injury, impairment,

pregnancy, recovery from childbirth or physical or mental

condition as described in 29 U.S.C. § 2611(11) (relating to

definitions).

"Statewide average weekly wage." The average amount of

weekly wages as determined by the department on an annual basis

for each calendar year in accordance with the Workers'

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Compensation Act, which shall be posted on the department's

publicly accessible Internet website.

"Unemployment Compensation Law." The act of December 5, 1936

(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

Compensation Law.

"Workers' Compensation Act." The act of June 2, 1915

(P.L.736, No.338), known as the Workers' Compensation Act.

CHAPTER 3

FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM

Section 301. Family and Medical Leave Insurance Program.

(a) Establishment of program and payment of benefits.--

(1) Within one year of the effective date of this

paragraph, the department shall establish the Family and

Medical Leave Insurance Program.

(2) No later than two years following the establishment

of the program, the department shall pay family and medical

leave insurance benefits as specified in this act.

(b) Required documentation.--The department shall establish

reasonable procedures and forms for filing a claim under this

act, the documentation necessary to support a claim and any

certification required from a health care provider for proof of

a serious health condition.

provided to an employer by an employee under section 501(d), the

department shall notify the employer within five 10 business

days of an approved claim for benefits under this act.

(d) Information sharing.--Information sharing and

integration technology to facilitate the disclosure of relevant

information or records shall be used as practicable subject to

consent and disclosure requirements under State law.

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(e) Confidentiality.--Information contained in the files and

records pertaining to an individual filing a claim under this

act are confidential and shall not be open to public inspection

other than to public employees in the performance of their

official duties.

(f) Cooperation among departments.--To properly effectuate

the provisions of this act, all departments and agencies under

the jurisdiction of the Governor shall fully cooperate with the

department and provide assistance and support as needed to

ensure the timely and efficient delivery of benefits under this

act.

Section 302. Powers and duties of department.

(a) Administration of act.--The department shall be

responsible for the administration of this act and the fund.

Administration of the program for purposes of this section and

section 506 shall include acquisition, development and

operational costs related to information technology,

infrastructure and personnel needed to process claims and issue

benefits under this act.

(b) Powers and duties.--To fulfill its responsibilities

under this act, the department shall have the following powers

and duties:

(1) Calculate and set the amount of benefits payable to

a covered individual as specified in section 305 initially

and on an annual basis thereafter.

(2) Provide information to employees and employers on

the amount to be deducted as employee payroll premium

contributions as specified in section 306 initially and every

year thereafter.

(3) Develop and prepare the written notices that

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employers must distribute and provide to their employees in

accordance with section 501. The form of the notices shall be

posted on the department's publicly accessible Internet

website.

(4) Prepare and provide the medical certification form

referenced in section 303(d) on the department's publicly

accessible Internet website.

(5) Prepare and provide the necessary forms for filing

and acknowledging a benefits claim and for providing notice

of benefits approval to both employers and covered individual

employees.

(6) EVALUATE AND ADJUDICATE CLAIMS.

(7) EVALUATE AND DETERMINE THE AMOUNT OF PAYROLL PREMIUM

CONTRIBUTIONS AND MAXIMUM EMPLOYEE CONTRIBUTIONS TO ENSURE

FUND SOLVENCY.

(8) COORDINATE BENEFITS WITH EMPLOYERS THAT HAVE ALREADY

PAID FOR BENEFITS OUTSIDE OF THE FUND.

(9) MAKE PAYMENTS ON CLAIMS.

(6) (10) Develop the abstract for employer posting of

notice in the workplace under section 501, which shall be

available on the department's publicly accessible Internet

website.

(7) (11) Prepare and provide the employee complaint form

on the department's publicly accessible Internet website.

(8) (12) Develop any and all forms necessary to ensure

implementation of this act.

(9) (13) Develop procedures to investigate and resolve

complaints under this act.

(10) (14) Conduct an ongoing public outreach campaign to

inform employers and employees about the availability of the

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program and the process for filing a benefits claim.

(11) (15) Promulgate regulations as necessary to

administer this act.

(12) (16) Issue an annual report under section 507.

system for an administrative complaint and appeals process in

the case of a denial of family and medical leave insurance

benefits and all violations assessed under this act. In

establishing the appeals system, the department may utilize

procedures and appeals mechanisms established under the

Unemployment Compensation Law. THE SYSTEM FOR ADMINISTRATIVE

COMPLAINTS AND APPEALS PROCESS SHALL BE PROMULGATED BY THE

DEPARTMENT THROUGH REGULATION. Procedures to ensure

confidentiality of all information related to any claims filed

or appeals taken shall be implemented in accordance with

applicable laws.

Section 303. Eligibility for family and medical leave insurance

benefits.

(a) Basis for receipt of benefits.--No later than two years

following establishment of the program, benefits under this act

shall be payable to a covered individual who files an approved

claim based on any of the following:

(1) Because of birth, adoption or placement through

foster care, is caring for a new child during the first year

after the birth, adoption or placement of that child.

(2) Is caring for a family member with a serious health

condition.

(3) Has a serious health condition, including pregnancy,

that renders the covered individual unable to perform the

functions of the individual's position.

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(4) In a declared public health emergency, is caring for

a family member with a serious health condition.

(5) Is caring for a family member who is a covered

service member due to a qualifying exigency leave in

accordance with the terms of 29 U.S.C. Ch. 28 (relating to

family and medical leave).

(b) Employment and income eligibility requirements.--To be

eligible to file a benefits claim, a covered individual must

have:

(1) Worked at least 18 weeks during the 12-month period

prior to submitting a claim.

(2) Earned at least $2,718 in income during the 12-month

period prior to submitting a claim. This earned income rate

shall be adjusted annually by the department based on the

Pennsylvania Unemployment Insurance Financial Eligibility

Rules. THE EARNED INCOME RATE IN THIS PARAGRAPH SHALL BE

ADJUSTED ANNUALLY BY THE DEPARTMENT AND REFLECT THE MINIMUM

QUALIFYING WAGE TO QUALIFY FOR BENEFITS UNDER THE

UNEMPLOYMENT COMPENSATION LAW.

PAYMENT OF BENEFITS UNLESS THE AMOUNT OF WAGES THAT THE COVERED

INDIVIDUAL EARNED AT THE TIME OF THEIR LEAVE IS VERIFIED BY

SECTION 305(A)(2) OR UNDER THIS SUBSECTION. IF A DISCREPANCY IS

IDENTIFIED BY THE DEPARTMENT IN VERIFYING WAGES UNDER SECTION

305(A)(2), THE DEPARTMENT MAY REQUEST THE FOLLOWING DOCUMENTS

FROM A COVERED INDIVIDUAL TO VERIFY THEIR WAGES:

(1) A CHECK, CHECK STUB OR PAYROLL RECORD.

(2) A TAX RETURN, INCLUDING IRS FORM W-2 AND FORM 1099,

OR SUCCESSOR FORMS.

(3) UNEMPLOYMENT COMPENSATION RECORDS, INCLUDING FORM

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UC-2A.

(4) BANK STATEMENTS OR RECORDS SHOWING REGULAR AND

RECURRING DEPOSITS.

(5) WRITTEN DOCUMENTATION CREATED CONTEMPORANEOUSLY WITH

THE PAYMENT OF WAGES.

the Unemployment Compensation Law.--To file a benefits claim and

receive benefits under this act, a covered individual cannot

receive benefits for the same day under the Workers'

Compensation Act or the Unemployment Compensation Law.

(d) (E) Filing of benefits claim.--An individual seeking

benefits under this act shall submit a claim to the department

providing the required documentation to support a claim for

benefits, including any necessary medical certification.

(e) Medical certification.--A covered individual shall

(F) MEDICAL CERTIFICATION.--

(1) A COVERED INDIVIDUAL SHALL obtain a medical

certification confirming a serious health condition under

subsection (a)(2), (3) and (4) that justify the filing of a

claim and the receipt of benefits under this act and shall

make that information available to the department on the form

prescribed by the department. WHEN POSSIBLE, THE DEPARTMENT

SHALL USE FEDERAL FAMILY AND MEDICAL LEAVE FORMS. Any

completed medical certification form regarding a covered

individual shall be entitled to the protections of the Health

Insurance Portability and Accountability Act of 1996 (Public

Law 104-191, 110 Stat. 1936) USED SOLELY FOR THE PURPOSE OF

ADJUDICATING A CLAIM UNDER THIS ACT.

(2) CONFIDENTIAL MEDICAL DOCUMENTATION SHALL NOT BE

RELEASED BY THE DEPARTMENT UNLESS WRITTEN AUTHORIZATION IS

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PROVIDED BY AN EMPLOYEE OR A COVERED INDIVIDUAL.

(G) MARRIED OR DOMESTIC PARTNERS EMPLOYED BY THE SAME

EMPLOYER.--INDIVIDUALS WHO ARE LEGALLY MARRIED OR DOMESTIC

PARTNERS UNDER THE LAWS OF ANY STATE OR POLITICAL SUBDIVISION

AND EMPLOYED BY THE SAME EMPLOYER SHALL BOTH BE ELIGIBLE FOR

BENEFITS UNDER THIS ACT, EVEN WHEN THE LEAVE RUNS CONCURRENTLY.

(H) PROMULGATING REGULATIONS.--THE DEPARTMENT SHALL

PROMULGATE REGULATIONS TO PROVIDE FOR AN ADJUDICATION PROCESS

UNDER THIS ACT.

(f) (I) Adjudication of claim.--Upon receipt of all

necessary documentation to support a claim for benefits from a

covered individual, the department shall determine eligibility

for benefits under this act within five 20 business days.

Section 304. Duration of benefits.

(a) Maximum leave duration of 20 weeks.--The maximum number

of weeks during which benefits are payable under section 303(a)

(1) or (3) in an application year is 20 weeks.

(b) Maximum leave duration of 12 weeks.--The maximum number

of weeks during which benefits are payable under section 303(a)

(2), (4) or (5) in an application year is 12 weeks.

subsections (a) and (b) combined cannot exceed a total number of

20 weeks in any one application year regardless of reason.

(d) Initial payment of benefits.--The first payment of

benefits shall be made to a covered individual no later than one

week:

(1) after the claim is filed and approved by the

department; or

(2) from the date the leave is scheduled to commence.

(e) Payment of benefits.--After the initial payment of

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benefits, subsequent payments shall be made semimonthly

thereafter for the duration of the approved leave.

Section 305. Amount of benefits.

(a) Calculation of benefits.--The benefits payable to a

covered individual shall be calculated as follows:

(1) the portion of a covered individual's average weekly

wage that is equal to or less than 50% of the Statewide

average weekly wage shall be replaced at a rate of 90%; and

(2) the portion of a covered individual's average weekly

wage that exceeds 50% of the Statewide average weekly wage

shall be replaced at a rate of 50%.

(A) CALCULATION OF BENEFITS.--

(1) THE BENEFITS PAYABLE TO A COVERED INDIVIDUAL SHALL

BE CALCULATED AS FOLLOWS:

(I) THE PORTION OF A COVERED INDIVIDUAL'S AVERAGE

WEEKLY WAGE THAT IS EQUAL TO OR LESS THAN 50% OF THE

STATEWIDE AVERAGE WEEKLY WAGE SHALL BE REPLACED AT A RATE

OF 90%; AND

(II) THE PORTION OF A COVERED INDIVIDUAL'S AVERAGE

WEEKLY WAGE THAT EXCEEDS 50% OF THE STATEWIDE AVERAGE

WEEKLY WAGE SHALL BE REPLACED AT A RATE OF 50%.

(2) THE CALCULATION OF A COVERED INDIVIDUAL'S AVERAGE

WEEKLY WAGE IN ACCORDANCE WITH THIS SUBSECTION SHALL BE AS

FOLLOWS:

(I) IF AT THE TIME THE LEAVE COMMENCES THE WAGES ARE

FIXED BY THE WEEK, THE AMOUNT SO FIXED SHALL BE THE

AVERAGE WEEKLY WAGE.

(II) IF AT THE TIME THE LEAVE COMMENCES THE WAGES

ARE FIXED BY THE MONTH, THE AVERAGE WEEKLY WAGE SHALL BE

THE MONTHLY WAGE SO FIXED MULTIPLIED BY 12 AND DIVIDED BY

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52.

(III) IF AT THE TIME THE LEAVE COMMENCES THE WAGES

ARE FIXED BY THE YEAR, THE AVERAGE WEEKLY WAGE SHALL BE

THE YEARLY WAGE FIXED DIVIDED BY 52.

(IV) IF AT THE TIME THE LEAVE COMMENCES THE WAGES

ARE FIXED BY ANY MANNER NOT PROVIDED IN SUBPARAGRAPH (I),

(II) OR (III), THE AVERAGE WEEKLY WAGE SHALL BE

CALCULATED BY DIVIDING BY 13 THE TOTAL WAGES EARNED IN

THE EMPLOY OF THE EMPLOYER IN EACH OF THE HIGHEST THREE

OF THE LAST FOUR CONSECUTIVE PERIODS OF 13 CALENDAR WEEKS

IN THE 52 WEEKS IMMEDIATELY PRECEDING THE LEAVE PERIOD

AND BY AVERAGING THE TOTAL AMOUNTS EARNED DURING THESE

THREE PERIODS.

(V) IF THE COVERED EMPLOYEE HAS NOT BEEN EMPLOYED BY

THE EMPLOYER FOR AT LEAST THREE CONSECUTIVE PERIODS OF 13

CALENDAR WEEKS IN THE 52 WEEKS IMMEDIATELY PRECEDING THE

LEAVE PERIOD, THE AVERAGE WEEKLY WAGE SHALL BE CALCULATED

BY DIVIDING BY 13 THE TOTAL WAGES EARNED IN THE EMPLOY OF

THE EMPLOYER FOR ANY COMPLETED PERIOD OF 13 CALENDAR

WEEKS IMMEDIATELY PRECEDING THE LEAVE PERIOD AND BY

AVERAGING THE TOTAL AMOUNTS EARNED DURING SUCH PERIODS.

(VI) IF THE EMPLOYEE HAS WORKED LESS THAN A COMPLETE

PERIOD OF 13 CALENDAR WEEKS AND DOES NOT HAVE FIXED

WEEKLY WAGES, THE AVERAGE WEEKLY WAGE SHALL BE THE HOURLY

WAGE RATE MULTIPLIED BY THE NUMBER OF HOURS THE EMPLOYEE

WAS EXPECTED TO WORK PER WEEK UNDER THE TERMS OF

EMPLOYMENT.

(VII) EXCEPT AS PROVIDED IN SUBPARAGRAPH (V) OR

(VI), IN OCCUPATIONS WHICH ARE EXCLUSIVELY SEASONAL AND

THEREFORE CANNOT BE CARRIED THROUGHOUT THE YEAR, THE

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AVERAGE WEEKLY WAGE SHALL BE TAKEN TO BE ONE-FIFTEENTH OF

THE TOTAL WAGES WHICH THE EMPLOYEE HAS EARNED FROM ALL

OCCUPATIONS DURING THE 12 CALENDAR MONTHS IMMEDIATELY

PRECEDING THE LEAVE, UNLESS IT BE SHOWN THAT DURING SUCH

YEAR, BY REASON OF EXCEPTIONAL CAUSES, SUCH METHOD OF

CALCULATION DOES NOT CLEARLY PROVIDE THE EARNINGS OF THE

EMPLOYEE, IN WHICH CASE THE PERIOD FOR CALCULATION SHALL

BE EXTENDED SO FAR AS TO GIVE A BASIS FOR THE FAIR

ASCERTAINMENT OF AVERAGE WEEKLY EARNINGS.

(VIII) THE TERMS "AVERAGE WEEKLY WAGE" AND "TOTAL

WAGES," AS USED IN THIS PARAGRAPH SHALL INCLUDE BOARD AND

LODGING RECEIVED FROM THE EMPLOYER AND GRATUITIES

REPORTED TO THE UNITED STATES INTERNAL REVENUE SERVICE BY

OR FOR THE EMPLOYEE FOR FEDERAL INCOME TAX PURPOSES. THE

TERMS SHALL NOT INCLUDE AMOUNTS DEDUCTED BY THE EMPLOYER

UNDER THE CONTRACT OF HIRING FOR LABOR FURNISHED OR PAID

FOR BY THE EMPLOYER AND NECESSARY FOR THE PERFORMANCE OF

THE CONTRACT BY THE EMPLOYEE, NOR SHALL THE TERMS INCLUDE

DEDUCTIONS FROM WAGES DUE TO THE EMPLOYER FOR RENT AND

SUPPLIES NECESSARY FOR THE EMPLOYEE'S USE IN THE

PERFORMANCE OF THEIR LABOR, NOR SHALL THE TERMS INCLUDE

FRINGE BENEFITS, INCLUDING, BUT NOT LIMITED TO, EMPLOYER

PAYMENTS FOR OR CONTRIBUTIONS TO A RETIREMENT, PENSION,

HEALTH AND WELFARE, LIFE INSURANCE, SOCIAL SECURITY OR

ANY OTHER PLAN FOR THE BENEFIT OF THE EMPLOYEE OR THEIR

DEPENDENTS. HOWEVER, PROVIDED THAT THE AMOUNT OF ANY

BONUS, INCENTIVE OR VACATION PAYMENT EARNED ON AN ANNUAL

BASIS SHALL BE EXCLUDED FROM THE CALCULATIONS UNDER

SUBPARAGRAPHS (I), (II), (III), (IV), (V) AND (VI). SUCH

PAYMENTS, IF ANY, SHALL INSTEAD BE DIVIDED BY 52 AND THE

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AMOUNT SHALL BE ADDED TO THE AVERAGE WEEKLY WAGE

OTHERWISE CALCULATED UNDER SUBPARAGRAPHS (I), (II),

(III), (IV), (V) AND (VI). IF THE EMPLOYEE IS WORKING

UNDER CONCURRENT CONTRACTS WITH TWO OR MORE EMPLOYERS,

THE WAGES FROM ALL EMPLOYERS SHALL BE CONSIDERED AS IF

EARNED FROM THE EMPLOYER LIABLE FOR COMPENSATION.

(b) Limitation.--In no case shall the weekly benefits

(1) IN NO CASE SHALL THE WEEKLY BENEFITS payable to a

covered individual be more than the Statewide average weekly

wage.

(2) THE APPLICATION OF THE STATEWIDE AVERAGE WEEKLY WAGE

ON A CLAIM SHALL BEGIN ON THE DATE THAT THE BIRTH OR A

SERIOUS HEALTH CONDITION ARISES.

(3) IF A CLAIM CARRIES OVER FROM ONE YEAR INTO ANOTHER

AND THE STATEWIDE AVERAGE WEEKLY WAGE IS ADJUSTED, THE MOST

RECENT STATEWIDE AVERAGE WEEKLY WAGE SHALL BE USED IN ALL

FUTURE PAYMENTS.

shall adjust the maximum family and medical leave insurance

benefit cap established in subsection (a) annually based on the

Statewide average weekly wage and shall transmit notice of the

revised family and medical leave insurance benefit rates to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin on an annual basis.

(d) Limit on taking of benefits and nonsequential leave.--

Under this section and section 307, benefits are not payable for

less than eight hours of leave taken in one work week.

Section 306. Contributions.

(a) Payment into the program.--All persons employed in this

Commonwealth shall be required to contribute to the program for

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the purpose of financing the program.

(b) Commencement of payroll premium contributions.--Payroll

premium contributions into the fund for the purpose of financing

the program shall commence at least one year prior to the

payment of any benefits from the fund to covered individuals.

amount payable through employee payroll premium contributions

shall be set at 0.588% A PERCENTAGE of an individual employee's

wages to initiate payments into the program. The following

apply:

(1) THE PAYROLL PREMIUM CONTRIBUTION SHALL BE CALCULATED

USING AN ACTUARIAL EXPERIENCE STUDY THAT SHALL TAKE INTO

ACCOUNT ALL AVAILABLE DATA. THE RATE SHALL BE SET AT AN

AMOUNT TO ENSURE SOLVENCY OF THE FUND BUT SHALL NOT EXCEED 1%

OF AN INDIVIDUAL EMPLOYEE'S WAGES.

(1) Every (2) WHEN NECESSARY, BUT AT LEAST EVERY year

thereafter, the department shall evaluate and determine the

amount of payroll premium contributions and maximum employee

contribution necessary to finance and adequately support the

program.

(2) The premium contribution rate shall be the rate

necessary to obtain a total amount of premium contributions

equal to 125% of the benefits which were paid for the periods

of leave during the last preceding full fiscal year plus an

amount equal to 100% of the cost of administration of the

fund during the last preceding full fiscal year, less the

amount of net assets remaining in the fund as of December 31

of the immediately preceding calendar year.

(3) The payroll premium contribution rate shall be

posted on the department's publicly accessible Internet

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website.

(d) Notification to employers.--The department shall notify

the Department of Revenue to advise employers of the amount

payable through employee payroll premium contributions.

(e) Penalty for failure to withhold.--An employer who fails

to withhold payroll premium contributions in accordance with

this act shall be subject to those penalties enforceable through

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971, for failure to properly withhold wages for income

tax and sales and use tax purposes.

Section 307. Reduced leave schedule.

(a) Taking of nonsequential leave.--A covered individual

shall be entitled to utilize the leave authorized under section

304, at the option of the covered individual, to take leave on

an intermittent or reduced leave schedule in which all of the

leave authorized under this act is not taken sequentially.

Family and medical leave insurance benefits for intermittent or

reduced leave schedules shall be prorated.

(b) Impact on duration of leave.--Nonsequential leave taken

under this section shall not result in a reduction in the total

amount of family and medical leave to which a covered individual

is entitled beyond the amount of leave actually taken.

shall be construed to enable a covered individual to take more

leave than allowed under section 304.

Section 308. Employment protections.

(a) Restoration of employment position.--Any covered

individual who takes leave in accordance with this act shall,

upon the expiration of that leave, be restored by the employer

to the position previously held by the covered individual when

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the leave commenced, or to a position with equivalent seniority,

status, employment benefits, pay and other terms and conditions

of employment.

(b) Health care benefits maintained.--For the duration of a

leave approved under this act, the employer shall maintain any

health care benefits the covered individual had prior to taking

leave as if the covered individual had continued in employment

continuously from the date leave was commenced until the date

the leave terminates. A covered individual shall continue to pay

the covered individual's share of the cost of health benefits as

required prior to the commencement of the leave.

employer or any other person to interfere with, restrain or deny

the exercise of, or the attempt to exercise, any protection

afforded under this act.

(d) Retaliation prohibited.--An employer, temporary help

company, employment agency, employee organization or other

person shall not take retaliatory personnel action or otherwise

discriminate against a person because the person took any action

in accordance with this act, including:

(1) Applying for or using benefits or taking leave under

this act.

(2) Communicating to the employer or any other person or

entity an intent to file and act on a claim, a complaint or

an appeal with the department or a court of competent

jurisdiction.

(e) Consideration of absence.--It shall be unlawful for an

employer to count leave taken under this act as an absence that

may lead to or result in a retaliatory personnel action.

(f) Good faith protection.--Protections under this section

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shall apply to any person who mistakenly but in good faith

alleges a violation of this act.

(g) Definition.--As used in this section, the term

"retaliatory personnel action" includes any threat, discipline,

discharge, suspension, demotion, reduction of hours or any other

adverse action taken against an employee for exercising the

rights and protections afforded by this act. The term also

includes interference with or punishment for participating in or

acting on a complaint or appeal under this act.

Section 309. Coordination of benefits.

(a) Leave concurrent with Federal law.--Leave taken under

this act that also qualifies as leave under 29 U.S.C. Ch. 28

(relating to family and medical leave) shall run concurrently

with leave taken under 29 U.S.C. Ch. 28.

(b) Coordination with other paid leave.--An employee may

elect to utilize paid leave available under any other Federal or

State law, collective bargaining agreement or employer policy

prior to receiving benefits under this act, PROVIDED THAT IT

DOES NOT CONFLICT WITH FEDERAL LAW. Employers shall provide

employees with written notice of the opportunity to make the

election, and inform employees how leave will be coordinated

absent any election.

employer's obligation to comply with any of the following that

provides more generous leave:

(1) A collective bargaining agreement.

(2) An employer policy.

(3) Any other Federal or State law.

(d) Prohibition on subsequent collective bargaining

agreement or employer policy.--An individual's right to leave

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and the payment of benefits under this act may not be diminished

by a collective bargaining agreement entered into or renewed, or

an employer policy adopted or retained, after the effective date

of this subsection. An agreement by an individual to waive the

individual's rights under this act is void as against public

policy.

(e) Impact on Workers' Compensation Act.--Nothing in this

act shall be construed to impact the provisions of the Workers'

Compensation Act with regard to work-related injuries.

(f) Impact on Public Employe Relations Act.--Nothing in this

act shall be construed to supersede or preempt the rights,

remedies and procedures afforded to employees or labor

organizations under Federal or State law, including the act of

July 23, 1970 (P.L.563, No.195), known as the Public Employe

Relations Act, or any provision of a collective bargaining

agreement negotiated between an employer and an exclusive

representative of the employees in accordance with the Public

Employe Relations Act.

CHAPTER 5

ADMINISTRATION AND PROCEDURES

Section 501. Notice.

(a) Employer notice to employees.--Upon initial hiring of an

employee, and annually thereafter, an employer shall provide

written notice of the requirements of this act using the notices

prepared and posted by the department under section 302.

(b) Employer acknowledgment of leave request.--Using the

form prepared by the department under section 302, an employer

shall provide written acknowledgment to an employee when the

employee requests leave under this act. The acknowledgment shall

include:

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(1) An explanation of the employee's right to benefits

under this act and the terms for its use.

(2) The amount of benefits.

(3) The procedure for filing a benefits claim with the

department.

(4) Provisions on job protection and benefits

continuation under section 308.

(5) The prohibition on employer discrimination and

retaliatory personnel action against a person for requesting,

applying for or using leave as provided in section 308.

(6) The employee's ability to file a complaint for

violations of this act.

employer posting available on the department's publicly

accessible Internet website, an employer shall display and

maintain a poster in a conspicuous place accessible to employees

at the employer's place of business that contains the

information required by this section in English and Spanish,

with consideration to the inclusion of other significant

languages spoken in the workplace.

(d) Employee notice to employer.--When the need for leave is

known to the employee at least 15 30 days in advance, the

employee shall provide written or verbal notice to the employer

of the need and schedule for taking leave at least 15 30 days

prior to taking leave. The employee shall make a reasonable

effort to schedule leave in a manner that does not unduly

disrupt the operations of the employer. For all other absences,

the employee shall notify the employer as soon as practicable,

including if the need arises immediately before or after the

employee has reported for work.

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Section 502. Erroneous payments and disqualification for

benefits.

(a) Employee disqualification.--A covered individual is

disqualified from receiving benefits for one year if the

individual is determined by the department 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 act.

(b) Incorrect payment of benefits.--If benefits under this

act are paid:

(1) Erroneously IF BENEFITS UNDER THIS ACT ARE PAID

ERRONEOUSLY without fault or for a claim that is subsequently

rejected after benefits are paid, the department may seek

repayment through a reasonable reduction in any future

benefits due the recipient.

(2) As IF BENEFITS UNDER THIS ACT ARE PAID AS a result

of willful misrepresentation by the recipient, the recipient

shall be liable to repay a sum equal to the amount of

benefits derived through that willful misrepresentation and

the recipient shall be further disqualified for benefits as

specified in subsection (a).

(3) IF FAMILY AND MEDICAL LEAVE COMPENSATION IS PAID TO

A COVERED EMPLOYEE ERRONEOUSLY OR AS A RESULT OF WILLFUL

MISREPRESENTATION BY THE EMPLOYEE, OR IF A CLAIM FOR FAMILY

AND MEDICAL LEAVE COMPENSATION IS REJECTED AFTER COMPENSATION

IS PAID, THE DEPARTMENT MAY SEEK REPAYMENT OF BENEFITS FROM

THE EMPLOYEE HAVING RECEIVED THE COMPENSATION AND MAY ALSO,

IN THE CASE OF WILLFUL MISREPRESENTATION, SEEK PAYMENT OF A

PENALTY IN THE AMOUNT OF 50% OF THE BENEFITS PAID AS A RESULT

OF THE MISREPRESENTATION. THE DEPARTMENT MAY WAIVE, IN WHOLE

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OR IN PART, THE AMOUNT OF ANY OF THE PAYMENTS IF THE RECOVERY

WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE.

ESTABLISHED UNDER SECTION 302(C), A COVERED EMPLOYEE'S PROOF OF

WAGES MAY BE PROVEN:

(1) AS PROVIDED UNDER SECTION 303(C);

(2) BY TESTIMONY OF THE EMPLOYER THAT IS PRESENTED UNDER

OATH AT A HEARING UNDER SECTION 505; OR

(3) BY TESTIMONY OF THE COVERED EMPLOYEE, IF FOUND

CREDIBLE BY THE JUDGE DURING A HEARING UNDER SECTION 505.

Section 503. Elective coverage.

(a) Self-employed option.--A self-employed person, including

a sole proprietor, partner or participant in a joint venture,

may elect coverage under this act for an initial period of not

less than three years upon meeting all of the following

requirements:

(1) Filing a notice of election in writing with the

department, effective on the date of filing the notice.

(2) Supplying all income information that the department

deems necessary.

(3) Compliance with all eligibility, employment and

income requirements specified in section 303.

(b) Withdrawal from coverage.--A 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 other

times as the department may prescribe. Upon filing written

notice with the department, the self-employed person's

withdrawal from coverage shall take effect no later than 30 days

after filing the notice of withdrawal.

Section 504. Violations.

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An employer that violates the requirements of sections 308,

309 or 501 shall be subject to the penalties as specified in 29

U.S.C. § 2617 (relating to enforcement).

Section 505. Judicial review.

Judicial review of any decision regarding the denial of

benefits or an appeal of any violation of this act shall be

permitted in a court of competent jurisdiction COMMONWEALTH

COURT, AS REQUIRED UNDER 42 PA.C.S. § 763 (RELATING TO DIRECT

APPEALS FROM GOVERNMENT AGENCIES), after a party aggrieved

thereby has exhausted all administrative remedies established by

the department.

Section 506. Family and Medical Leave Insurance Fund.

(a) Fund established.--The Family and Medical Leave

Insurance Fund is established as a nonlapsing fund in the State

Treasury.

(b) Deposit of money.--Money from employee payroll premium

contributions paid under section 306 and any financial penalties

imposed under this act shall be deposited into the fund and used

by the department for the administration of the program and the

payment of benefits to covered individuals.

fund and all interest accrued is appropriated to the department

on a continuing basis to administer the program and provide

benefits under this act.

(d) Limitations on fund.--

(1) No administrative action shall prevent the deposit

of money into the fund in the fiscal year in which the money

is received.

(2) The fund may only be used for the program authorized

under this act. Money in the fund may not be transferred or

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diverted to any other purpose by administrative action.

(e) Other deposits.--The department may deposit into the

fund any other money received for the purposes specified in this

act.

Section 507. Annual report.

(a) Annual report.--

(1) No later than September 1, 2027, and each September

1 thereafter, the department shall submit a report to the

chairperson and minority chairperson of the Labor and

Industry Committee of the Senate and the chairperson and

minority chairperson of the Labor and Industry Committee of

the House of Representatives.

(2) Each report under paragraph (1) shall include:

(i) Actual program participation by category as

delineated in subparagraph (ii), including total number

of leaves taken.

(ii) Beneficiary gender for leaves taken.

(iii) Types of family members for whom leave was

taken to provide care.

(iv) Payroll premium contribution rate calculations

for the current and previous calendar year and projected

rate calculations for the next three calendar years.

(v) Projected program participation over the next

three calendar years.

(vi) Account balances.

(vii) The scope and success of outreach efforts.

(viii) Recommendations for improvements to the

program.

(b) Public posting of annual report.--The department shall

make the report available on the department's publicly

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accessible Internet website. Monthly data should also be made

available online.

Section 508. Public education.

(a) Outreach campaign.--

(1) The department shall conduct a public education

campaign to inform employees and employers regarding the

availability of family and medical leave benefits under this

act.

(2) The department shall allocate at least $500,000 from

the fund annually to pay for a public education program that

informs employees about benefits and eligibility under this

act.

(3) Outreach information shall be available in English,

Spanish and other languages as determined by the department.

(b) Community outreach.--The department may utilize outreach

money to identify and assist appropriate community organizations

in educating hard-to-reach populations or industries, including

low-income employees, employees and employers in industries that

do not typically provide paid family leave and employees and

employers whose primary language is not English.

Section 509. Board.

(a) Establishment.--The department shall establish the

Family and Medical Leave Insurance Advisory Board to assist in

the implementation of the program and ensure effective public

outreach regarding the availability of benefits under this act.

(b) Composition.--The board shall be composed of the

following:

(1) The secretary or a designee, who shall serve as the

chairperson.

(2) The State Treasurer or a designee.

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(3) The chairperson and minority chairperson of the

Labor and Industry Committee of the Senate or a designee.

(4) The chairperson and minority chairperson of the

Labor and Industry Committee of the House of Representatives

or a designee.

(5) Six members appointed by the secretary representing

an equal number of employers and employees who are residents

of and who work within this Commonwealth.

(1) Members specified under subsection (b)(1), (2), (3)

and (4) shall serve for the length of their tenure in the

capacity which enabled them to become members.

(2) Members specified under subsection (b)(5) shall

serve four-year terms and shall not be eligible to serve more

than two full consecutive terms.

(d) Quorum.--A majority of the members of the board

participating in person or by video conference shall constitute

a quorum.

(e) Meetings.--The board shall meet at the call of the chair

and shall hold meetings at least biannually.

(f) Public access.--The board shall permit the public to

view or listen to a board meeting through contemporaneous

methods and shall make the recordings available on the

department's publicly accessible Internet website.

(g) Expenses.--Members shall not receive compensation but

shall be reimbursed for actual expenses incurred in service of

the board.

Section 510. Regulations.

The department shall promulgate regulations as necessary to

implement and administer this act. Final form regulations shall

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be promulgated no later than September 1, 2025.

(A) DUTY OF DEPARTMENT.--IN ADDITION TO THE NECESSARY

REGULATIONS UNDER SECTIONS 302(C) AND 303(G), THE DEPARTMENT

SHALL PROMULGATE ADDITIONAL REGULATIONS AS NECESSARY TO

IMPLEMENT AND ADMINISTER THIS ACT.

(B) PUBLICATION.--PROPOSED REGULATIONS SHALL BE SUBMITTED TO

THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE NEXT

AVAILABLE ISSUE OF THE PENNSYLVANIA BULLETIN, AS REQUIRED BY THE

ACT OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE

COMMONWEALTH DOCUMENTS LAW, NO LATER THAN ONE YEAR AFTER THE

EFFECTIVE DATE OF THIS SECTION.

SECTION 511. RIGHT OF ACTION.

(A) CIVIL ACTION BY EMPLOYEE.--AN ACTION TO RECOVER DAMAGES

OR OTHER APPROPRIATE CIVIL OR EQUITABLE RELIEF FOR A VIOLATION

OF SECTION 308, 309 OR 501 MAY BE MAINTAINED AGAINST AN EMPLOYER

IN A COURT OF COMPETENT JURISDICTION IN THE COMMONWEALTH BY ONE

OR MORE EMPLOYEES.

(B) FEES AND COSTS.--THE COURT, IN AN ACTION UNDER THIS

SECTION, SHALL, IN ADDITION TO ANY JUDGMENT AWARDED TO THE

PLAINTIFF, ALLOW REASONABLE ATTORNEY FEES AND OTHER COSTS OF THE

ACTION TO BE PAID BY THE DEFENDANT.

SUBSECTION (A) SHALL TERMINATE ON THE FILING OF A COMPLAINT BY

THE SECRETARY IN AN ACTION UNDER SUBSECTION (D).

(D) CIVIL ACTION BY SECRETARY.--THE SECRETARY MAY BRING AN

ACTION IN COMMONWEALTH COURT TO RECOVER DAMAGES AND OTHER

APPROPRIATE RELIEF.

(E) MONEY RECOVERED BY SECRETARY.--ANY MONEY RECOVERED BY

THE SECRETARY SHALL BE HELD IN A SPECIAL DEPOSIT ACCOUNT AND

SHALL BE PAID DIRECTLY TO EACH EMPLOYEE AFFECTED WITHIN 60 DAYS

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OF RECEIPT.

CHAPTER 21

MISCELLANEOUS PROVISIONS

Section 2101. Effective date.

This act shall take effect in 180 days.

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