|
119th CONGRESS
2d Session |
To direct the Secretary of Labor to carry out a grant program to award grants to States to carry out a paid leave program, to establish the Interstate Paid Leave Action Network, and for other purposes.
Mr. Boozman (for himself and Mrs. Gillibrand) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
To direct the Secretary of Labor to carry out a grant program to award grants to States to carry out a paid leave program, to establish the Interstate Paid Leave Action Network, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the “More Paid Leave for More Americans Act”.
For purposes of this Act:
(1) QUALIFYING REASON.—The term “qualifying reason” means, in relation to an individual, a reason described in subparagraphs (A) through (D) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)) (applied for purposes of this paragraph as if the individual involved were the employee referred to in such section).
(2) SECRETARY.—The term “Secretary” means the Secretary of Labor.
In this title:
(1) AVERAGE WEEKLY EARNINGS.—The term “average weekly earnings”, with respect to an individual, means the quotient obtained by dividing—
(A) the annual earnings of the individual, by
(B) 52.
(A) IN GENERAL.—The term “covered partnership” means—
(i) a partnership between a State and at least one private entity in which that private entity handles at least one specific function integral to the provision of the paid leave program benefits (such as the benefit application process or the payment of benefit claims) as described in section 102(d); or
(ii) with respect to a State described in subparagraph (B), the State and every employer covered by the paid leave program of the State.
(B) CERTAIN STATES.—For purposes of subparagraph (A)(ii), a State described in this subparagraph is a State in which the paid leave program of the State—
(i) allows employers in the State that are covered by the State paid leave program to self-administer the payment of paid leave program benefits to eligible employees of the employer; and
(ii) requires any such employer that self-administers such payment to—
(I) meet or exceed the requirements of the State paid leave program; and
(II) provide paid leave program benefits to all employees of the employer who meet the eligibility requirements of the State paid leave program.
(3) EARNINGS.—The term “earnings”, with respect to an individual, means all compensation for employment that is considered under the applicable State unemployment compensation law for the purpose of calculating the amount of unemployment compensation for the individual.
(4) ELIGIBLE EMPLOYEE.—The term “eligible employee” means an employee who meets the eligibility requirements of the State paid leave program of the State in which the employee works.
(5) ELIGIBLE STATE PAID LEAVE PROGRAM.—The term “eligible State paid leave program” means a program described in section 102(d).
(6) EMPLOYER.—The term “employer” means an employer covered by the State paid leave program of the State in which the employer operates.
(7) FLSA TERMS.—The terms “employ” and “employee” have the meanings given the terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).
(8) STATE.—The term “State” includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.
SEC. 102. Establishment of the State Paid Leave Public-Private Partnership Grant Program.
(a) In general.—The Secretary shall establish and administer a competitive grant program to provide grants to States that have enacted a law establishing an eligible paid leave program as described in subsection (d).
(b) Eligibility.—To be eligible to receive a grant under this section, a State shall have enacted a State law establishing an eligible State paid leave program.
(1) IN GENERAL.—To be eligible to receive a grant under this section, a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of how the funds will be used, the working population of the State, the percentage of the State’s working population that is able to access a paid leave benefit, and the source of such benefit.
(A) IN GENERAL.—In awarding grants under this section, the Secretary shall prioritize States—
(i) that, as of the date of enactment of this Act, did not already have established a paid leave benefits program;
(ii) that participate in the Interstate Paid Leave Action Network established by section 202(a);
(iii) that provide paid leave benefits for the reasons described in subparagraphs (A) and (B) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1));
(iv) that indicate in the application submitted under paragraph (1) that the covered partnership will use software that is a commercially available off-the-shelf item (as defined in part 2.101 of the Federal Acquisition Regulation) to administer benefits that will produce cost-savings for the State;
(v) that have, relative to other States that have submitted an application in a given year, a lower percentage of the working population of the State that have access to a paid leave benefit at the time of the submission of the application;
(vi) that demonstrate in the application that the State has a plan to implement a financing mechanism that does not have long-term reliance on Federal funding; or
(vii) that demonstrate in the application how the State paid leave program serves low-income populations.
(B) CONSIDERATION PROHIBITION.—The Secretary may not consider whether a State provides benefits in excess of those required under subsection (d) when deciding which States shall receive a grant under this title.
(d) Paid leave program requirements.—
(1) PROGRAM REQUIREMENTS.—An eligible State paid leave program shall, at a minimum—
(A) provide, through a covered partnership, not less than 6 weeks of paid leave benefit to eligible employees in a 12 month period for at least one qualifying reason;
(B) annually establish a weekly maximum benefit amount that is equal to 150 percent of the State’s average weekly wage (based on the most recent calendar year for which data is available from the Quarterly Census of Employment and Wages program of the Bureau of Labor Statistics);
(C) require the establishment and use of a covered partnership;
(D) establish premium rates or a financing method to fund the paid leave program for employees, employers, or both to pay;
(E) establish criteria for an individual to be classified as an employee for purposes of such program that would include, at minimum, any eligible employee, as such term is defined in section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611); and
(F) establish criteria for a person to be classified as an employer for purposes of such program that would include, at minimum, any person described in clause (i) or (ii) of section 101(A) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(A)).
(2) PAID LEAVE BENEFIT.—A paid leave benefit under paragraph (1) that is provided to an eligible employee shall, at a minimum, include weekly compensation in an amount (not to exceed the amount described in paragraph (1)(B)) equal to the product of the average weekly earnings of the eligible employee and—
(A) in the case of an eligible employee whose earnings for the 4 most recently completed calendar quarters that immediately precede the paid leave benefit request are less than or equal to the poverty line (as defined in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902)) applicable to a 4-person household, not less than 67 percent;
(B) in the case of an eligible employee whose earnings for such calendar quarters are more than such poverty line, but less than the amount that is double such poverty line, a percentage not less than—
(i) 67 percent, minus
(I) 17 percent; and
(II) the percentage by which the employee’s earnings exceed such poverty line; or
(C) in the case of any other eligible employee, 50 percent.
(3) RECALCULATION OF BENEFIT AMOUNT.—The weekly compensation calculated under paragraph (2) for an eligible employee shall be recalculated each time such employee applies for a paid leave benefit.
(4) EMPLOYEES WITH MULTIPLE EMPLOYERS.—An eligible State paid leave program shall provide that, in the case that an employee is employed by multiple employers, such an employee shall be entitled to receive a paid leave benefit from each employer, but the employee may not receive a total combined weekly benefit in excess of the maximum benefit amount established by the State pursuant to paragraph (1)(B).
(5) EMPLOYER SELF-ADMINISTRATION FLEXIBILITY.—An eligible State paid leave program shall, in the case that the program includes a requirement for employer participation, provide that the employer may self-administer paid leave benefits to eligible employees if such benefits meet or exceed the benefits available under the eligible State paid leave program of such State.
(6) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to limit the ability of a State to provide additional paid leave benefits in excess of the benefits required to be provided under this subsection, including—
(A) benefits for reasons other than the reasons described in subparagraphs (A) through (D) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1));
(B) benefits in amounts in excess of amounts provided under this subsection; or
(C) benefits for individuals other than eligible employees.
(e) Use of Funds.—Grants awarded under this section may be used by States for the following purposes:
(1) Start up costs for the implementation of the eligible State paid leave program.
(2) To pay out benefits to eligible employees, but only for a qualifying reason.
(3) To fund the covered partnership.
(4) Paid leave program design.
(5) Purchasing and maintaining any necessary software.
(6) Establishing a covered partnership.
(7) Obtaining technical assistance for the State or the covered partnership to carry out the eligible State paid leave program.
(8) Outreach to employers, payroll providers, relevant professional or trade associations, and the general public to increase awareness of the State’s eligible State paid leave program and to convey relevant information such as program eligibility, funding requirements, benefit information, the application process, and any other information the State determines relevant.
(9) Other activities to disseminate information about, and otherwise support, the accessibility of the State’s eligible State paid leave program, including the operation and maintenance of a program website, running a call center, and sending marketing materials on the State’s covered partnership to the groups described in paragraph (8).
(10) Research to inform the establishment and operation of the State’s eligible State paid leave program, including program evaluations, and the dissemination of such research to the public.
(11) To evaluate existing programs and models.
(12) To reduce administrative burdens on employers in the State.
(1) IN GENERAL.—In determining the amount of a grant to be provided to a State, the Secretary shall consider—
(A) the size of the working population of the State relative to the size of the working population of the other States that are receiving a grant;
(B) the birth rate of the State relative to the other such States;
(C) the share of low-income individuals in the State; and
(D) the demonstrated need of a State in the grant application.
(2) LIMITS.—A grant provided under this section may not be less than $1,500,000 and may not be more than $7,000,000.
(a) Report.—Not later than 1 year after a State receives a grant under this title, and on an annual basis thereafter, the State shall submit to the Secretary, and make publicly available, a report on—
(1) how the State has used the grant funds; and
(2) the number of individuals in the State that have used paid leave benefits as a result of the grant program described in section 102.
(b) Annual report.—The Secretary shall, on an annual basis beginning on the date that is 1 year after the date the Secretary receives the first report under subsection (a), submit a report to the appropriate committees on the progress of States establishing paid leave programs, the modification of existing paid leave programs, and any changes in the levels of access workers have to paid leave benefits in each State that receives a grant under section 102.
(c) Audit required.—Not later than 1 year after a State receives a grant under section 102, and on an annual basis thereafter, the Inspector General of the Department of Labor shall conduct audits on States that received such a grant to determine whether such States—
(1) are using the grant funds in compliance with the requirements described in section 102(e); and
(2) are engaging in any waste, fraud, or abuse.
(d) Appropriate committees defined.—In this section, the term “appropriate committees” means—
(1) the Committee on Education and Workforce, the Committee on Ways and Means, and the Committee on Appropriations of the House of Representatives; and
(2) the Committee on Health, Education, Labor, and Pensions, the Committee on Finance, and the Committee on Appropriations of the Senate.
SEC. 104. Authorization of appropriations.
There is authorized to be appropriated such sums as may be necessary to carry out this title for each of fiscal years 2027 through 2029.
In this title:
(1) BLS.—The term “BLS” means the Bureau of Labor Statistics.
(2) EMPLOYER PAID LEAVE BENEFITS PROGRAM.—The term “employer paid leave benefits program” means a program that—
(A) is provided by an employer to the employees of such employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan);
(B) is an option for an employer within the structure of a State paid leave benefits program in such State; and
(C) meets or exceeds the requirements of the State paid leave benefits program of the State in which such employee is employed.
(3) I–PLAN.—The term “I–PLAN” means the Interstate Paid Leave Action Network established in section 202(a).
(4) I–PLAN AGREEMENT.—The term “I–PLAN Agreement” means the interstate agreement produced pursuant to section 202(b).
(5) NATIONAL INTERMEDIARY.—The term “national intermediary” means a national nongovernmental workforce organization that has extensive experience partnering with the Department of Labor to operate interstate technological systems and the electronic transmission of information and data for State workforce agencies and employers.
(6) PAID LEAVE.—The term “paid leave” means an increment of compensated leave that is provided, in the case of a State paid leave benefits program, by such State or, in the case of an employer plan paid leave benefits program, by such employer for use during a period in which such individual is not working due to a qualifying reason.
(7) STATE FOCAL.—The term “State focal” means, with respect to a State, an individual—
(A) designated by the State agency in charge of such State’s paid leave benefits program to—
(i) participate in the I–PLAN;
(ii) lead such State’s efforts to adopt and implement the I–PLAN Agreement; and
(iii) communicate with key paid leave stakeholders across the State; and
(i) is employed by such State’s paid leave benefits program; and
(ii) has knowledge, experience, and authority in paid leave matters.
(8) STATE PAID LEAVE BENEFITS PROGRAM.—The “State paid leave benefits program” means a program under State law that provides, during any 24-month period, a total of not less than 6 weeks of paid leave to individuals—
(A) for each qualifying reason; and
(B) in aggregate.
SEC. 202. Interstate Paid Leave Action Network.
(1) ESTABLISHMENT.—There is established an Interstate Paid Leave Action Network, the purpose of which is to provide support and incentives for the development and adoption of an interstate agreement in accordance with this title to benefit employees, States, and employers by—
(A) facilitating streamlined benefit delivery;
(B) reducing administrative burden; and
(C) coordinating and harmonizing State programs.
(2) MEMBERSHIP.—The I–PLAN shall include a State focal from each State receiving a conforming grant under section 204(a).
(3) MEETINGS.—The I–PLAN shall meet not less than 3 times in each calendar year.
(A) CERTIFICATION.—States shall certify to the Secretary their participation in the I–PLAN.
(B) PROCEDURES.—State focals may determine, in coordination with the Secretary, the process for each of the following:
(i) The order in which States approach the substance of each I–PLAN requirement.
(ii) The process by which States reach consensus on such substance and agree to the I–PLAN Agreement.
(iii) The process by which a State may leave the I–PLAN.
(iv) Other processes relevant to the success and administration of the I–PLAN as the Secretary determines.
(5) ROADMAP.—The I–PLAN shall develop, and annually update, a roadmap for developing and implementing the interstate agreement described in subsection (b), including metrics for success.
(b) Duties.—The duty of the I–PLAN shall be to produce an interstate agreement into which States offering a State paid leave benefits program may enter and to periodically update such agreement as necessary to improve clarity and scope. Such agreement shall be publicly available and pursue each of the following requirements:
(1) POLICY STANDARD.—Create a single policy standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including definitions for the following:
(A) Benefit day, week, and year.
(B) Base period.
(C) Intermittent and reduced schedule leave.
(D) Place of performance.
(E) Family members.
(F) Employee eligibility.
(G) Employee coverage.
(H) Waiting period.
(I) Covered wage.
(2) ADMINISTRATIVE STANDARD.—Create a single administrative standard with respect to all participating States to facilitate easier compliance with and understanding of paid leave programs across States, including—
(A) the process by which employers respond to requests from States to verify and provide employee information for eligibility determinations, including wages and work history;
(B) the process by which employers provide periodic and permanent notice of the availability of paid leave under a State paid leave benefits program or employer paid leave benefits program to employees;
(C) employees’ responsibility to provide notices of leave to their employers;
(D) timing of and process for collecting payroll contributions;
(E) coordinating with other types of paid time off and leaves of absence;
(F) continuing other benefits;
(G) accessing employee leave information;
(H) protecting personal information;
(I) creating and updating written leave materials such as handbooks;
(J) maintaining records and documentation; and
(K) if a State program permits employers to elect to provide employer paid leave benefits programs, facilitating such election, including by creating a single equivalency standard with respect to all participating States to determine whether the maximum monetary value of an employer paid leave benefits program for the average weekly wage of workers in the State for total covered establishments in all industries (based on the most recent calendar year for which data are available from the Quarterly Census of Employment and Wages program of the BLS) is greater than or equal to the maximum monetary value of a State program (or that of multiple States), taking into account programmatic elements such as—
(i) how benefit duration, wage replacement, absence of a weekly benefit cap, absence of a waiting week, and other factors interact in a quantitative manner; and
(ii) how an individual taking paid leave for a qualifying reason affects the ability of such individual to take paid leave for another qualifying reason.
(3) COORDINATION OF BENEFITS ACROSS STATE PROGRAMS.—Create a single process for State programs to process claims for an individual who has work history across multiple participating States so that a single State program may provide benefits to such individual on the basis of all such work history.
SEC. 203. National intermediary to support the Interstate Paid Leave Action Network.
(a) Authority To make grants.—Subject to the availability of appropriations under section 205(a), the Secretary, acting through the Employment and Training Administration, shall award a grant to one national intermediary to facilitate the activities of the I–PLAN.
(b) Use of funds.—A national intermediary awarded a grant under subsection (a) shall use funds for the costs related to each of the following:
(1) MEETINGS.—Meeting activities, including—
(A) convening the State focals as described in section 202(a)(3), including reasonable travel, transportation, and other expenses of State focals and staff of the national intermediary (and any necessary accompanying State personnel);
(B) making publicly available information on the agendas and outcomes of such meetings; and
(C) (i) not later than 12 months after the date of enactment of this title, making publicly available the roadmap described under section 202(a)(5); and
(ii) making any updates to such roadmap publicly available.
(2) ANNUAL REPORT.—Producing and making publicly available on an annual basis a report that compares State programs, including information on—
(A) benefit eligibility;
(B) the maximum number of weeks an eligible employee is allowed to receive benefits—
(i) for each qualifying reason; and
(ii) in aggregate;
(C) wage replacement rate and how that may vary based on prior earnings;
(D) maximum weekly benefit amount;
(E) how such programs are financed by employees and employers, including the payroll tax rate and amount of wages subject to tax;
(F) whether and how such programs allow employers to provide employer paid leave benefits programs, taking into consideration elements such as—
(i) benefit payment timeliness; and
(ii) employer and employee administrative complexity;
(G) whether and how such programs coordinate with other types of paid-time off and leaves of absence;
(H) the reasons, including qualifying reasons, under which an individual is eligible to take paid leave; and
(I) other activities essential for the success, effectiveness, and sustainability of the I–PLAN.
(3) OUTREACH AND COORDINATION.—Engagement, consulting, and gathering relevant information in coordination with I–PLAN States from a wide range of external stakeholders, including—
(A) State legislatures;
(B) Governors;
(C) employees;
(D) representatives of employers, including—
(i) employers with employees in multiple States; and
(ii) employers with fewer than 50 employees;
(E) self-employed individuals;
(F) policy experts and other organizations with expertise on paid leave and unemployment compensation programs; and
(G) Tribal governments.
(4) STANDARDIZED AND INTEROPERABLE TECHNOLOGY SYSTEM FOR WAGES.—Providing a standardized technology-based system to facilitate States’ ability to carry out the I–PLAN Agreement, allowing States to process interstate claims and strengthen program integrity, that—
(A) adopts or leverages modular technology that—
(i) ensures privacy, security, and prompt data availability;
(ii) enhances and streamlines the claimant, employer, and participating State experience; and
(iii) is interoperable with other relevant State systems; and
(B) permits States to report on, to the extent reasonable and technologically feasible, and disaggregated by qualifying reason, on trends such as—
(i) the number of initial and continued benefit claims;
(ii) average duration of benefits;
(iii) average weekly benefit amount;
(iv) average time between filing a claim and receiving an initial benefit payment; and
(v) the accuracy of benefit payment amounts.
(5) ADDITIONAL USES.—Additional activities, including—
(A) hiring and compensating staff;
(B) formulating guidance, recommendations, and best practices for States;
(C) providing training on program administration;
(D) providing technical assistance to States; and
(E) creating or leveraging technology essential for the success and effectiveness of the I–PLAN.
(c) Duration of award.—Subject to subsection (d)(4), the period during which payments are made to an entity from an award of a grant under subsection (a) shall be 5 years.
(d) National intermediary oversight.—The Secretary shall—
(1) monitor the national intermediary to ensure compliance with the requirements of this title;
(2) provide technical assistance to assist the national intermediary with such compliance;
(3) require regular reports on the performance of the national intermediary, including on the roadmap under section 202(a)(5), the use of funds under section 203(b), and other methods of evaluation; and
(4) annually evaluate whether the national intermediary is complying with the requirements of this title and, if the Secretary determines that the national intermediary is not so complying, withhold any payment or part of the payment to the national intermediary under this section for the following fiscal year unless and until the Secretary determines the national intermediary has remedied such compliance issue.
SEC. 204. Grants to eligible States.
(A) AUTHORITY TO MAKE GRANTS.—Subject to the availability of appropriations under section 205(b), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make a conforming grant to each eligible State.
(i) IN GENERAL.—A grant to an eligible State under this subsection shall be—
(I) not less than $1,500,000 and not more than $8,000,000; and
(II) subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by the Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States.
(ii) ADJUSTMENT.—The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 205(b) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i).
(A) IN GENERAL.—To be eligible to receive a grant under paragraph (1), a State shall—
(i) have a State focal; and
(ii) participate in the I–PLAN in good faith.
(i) WITHHOLDING.—If the Secretary, in consultation with the national intermediary awarded the grant under section 203(a), determines that a State is not participating in the I–PLAN in good faith, the Secretary—
(I) shall provide warning and feedback to States in a prompt manner; and
(II) if, 180 days after the date on which the Secretary provides such warning and feedback, the Secretary determines such State continues not to participate in the I–PLAN in good faith, the Secretary may elect to withhold a portion or the total amount of a grant under paragraph (1) to such State.
(ii) RESTORATION.—If the Secretary elects to withhold an amount from a State under clause (i)(II), the Secretary may later elect to provide the amount so withheld to such State if the Secretary later determines that such State is participating in good faith.
(A) AUTHORITY TO MAKE GRANTS.—Subject to the availability of appropriations under section 205(c), the Secretary, acting through the Employment and Training Administration, shall, on an annual basis, make an implementation grant to each eligible State.
(i) IN GENERAL.—A grant to an eligible State under this subsection shall be—
(I) not less than $1,500,000 and not more than $8,000,000; and
(II) subject to subclause (I), awarded on the basis of the relative annual level of employment (as published by Current Employment Statistics program of the BLS) of the eligible State, compared to the annual level of employment in all eligible States.
(ii) ADJUSTMENT.—The amounts specified in clause (i) shall be ratably increased or decreased to the extent that funds available under section 205(c) exceed or are less than (respectively) the amount required to provide the amounts specified in clause (i).
(A) IN GENERAL.—Subject to subparagraph (B), to be eligible to receive a grant under paragraph (1), a State shall—
(i) meet the requirements of subsection (a)(2)(A); and
(ii) have entered into the I–PLAN Agreement.
(B) LIMITATION.—A State described in subparagraph (A) shall be ineligible to receive a grant for any fiscal year beginning after the date that is 4 years after the date on which such State enters into the I–PLAN Agreement in which such State does not meet the requirements of such Agreement.
(c) Use of funds.—A State may use grants received under this section—
(1) to help pay administrative costs, including costs related to—
(A) customer service;
(B) staffing and training;
(C) technology;
(D) data sharing;
(E) identity validation; and
(F) program awareness; and
(2) to help small businesses, as defined by the State, afford employer payroll contributions or access other forms of technical and operational assistance related to State paid leave.
SEC. 205. Authorization of appropriations.
(a) National intermediary grant.—There are authorized to be appropriated such sums as may be necessary for the purposes of section 203 for each of fiscal years 2027 through 2029.
(b) Conforming grants.—There are authorized to be appropriated such sums as may be necessary for the purposes of section 204(a) for each of fiscal years 2027 through 2029.
(c) Implementation grants.—There are authorized to be appropriated such sums as may be necessary for the purposes of section 204(b) for each of fiscal years 2027 through 2029.