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The United States does not have a national paid family and medical leave policy, however, both Republican and Democratic leaders have agreed that these Paid Leave benefits are important to the American people. To encourage public adoption of these benefits, the federal government extended the tax credit through 2025 for businesses that choose to offer paid FMLA programs.
H. R. 133—1870 SEC. 116. EXPENSING RULES FOR CERTAIN PRODUCTIONS. (a) EXTENSION. —Section 181(g) is amended by striking ‘December 31, 2020’’ and inserting ‘‘December 31, 2025’’. (b) EFFECTIVE DATE. —The amendment made by this section shall apply to productions commencing after December 31, 2020.
To learn more about the federal PFML tax credit, including the IRS Form 8994 to claim the credit, visit: About Form 8994, Employer Credit for Paid Family and Medical Leave | Internal Revenue Service (irs.gov)
Proposed Federal Programs
Both the Democrats and Republicans have proposed federal programs that offer paid family leaves. The most recent draft bills are focused to amend the Internal Revenue Code of 1986 to enhance the paid family and medical leave credit noted above. Paid Family and Medical leaves, in general, are felt to be important to the general public, but has been overshadowed by other federal programs such as 2022 inflation and the economy.
As for a paid leave federal plan, Democrats would like to see a program similar to Social Security with a shared employee and employer tax (i.e., the Build Back Better – 4-week Paid Family Leave, or the Family and Medical Insurance Leave (FAMILY) Act). Republican plans look to delay the start of Social Security retirement benefits by any time taken to bond with their children (i.e., New Parents Act). In 2019, a bipartisan group recommended a hybrid proposal that would allow new parents to accelerate a portion of their child tax credit for immediate pay following the birth of a child. In exchange, the credit would be reduced over the following decade (i.e., ‘Paid Family Leave’ bill).
Even if a nationwide paid family and medical leave benefit is passed into law, it may not preempt state and local leave laws offering similar benefits. It may be similar to the federal unpaid FMLA law and the multiple states who have passed similar Family Leave Acts mandating job protections for employees who need leave. There is no doubt that Paid Family and Medical leaves will continue to be the topic of compliance conversations in the upcoming years.
As of March 1, 2023
Provides paid family leave benefits for:
FEPLA provides paid parental leave in connection with the birth, adoption, or foster care placement of a child for employees covered by the Family and Medical Leave Act (FMLA) provisions applicable to certain federal civilian employees. Benefits started October 1, 2020, and applies to leave taken in connection with a birth or placement of a new child. For more information regarding the Federal employees Paid Parental Leave for Federal Employees see Bulletin #249. FY21.
Parental Bereavement leave, effective January 1, 2022. Employees become eligible for two weeks of paid bereavement leave if a child—including adopted, foster and stepchildren, as well as an adult child with “a mental or physical disability”—dies. The death essentially starts a one-year entitlement, during which employees may elect to take a period of up to two weeks of paid leave. For more information regarding the click on this (Parental Bereavement Leave | CHCOC) link.
The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year and allows for the extension of their group health benefits to be maintained during the leave.
FMLA applies to all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees. These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for any of the following reasons:
Employees are eligible for leave if they have worked for their employer for at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Whether an employee has worked the minimum 1,250 hours of service is determined according to Fair Labor Standards Act (FLSA) principles for determining compensable hours or work.
The information presented on this website is not legal advice and should not be relied upon or construed as legal advice. It is not permissible for MetLife or its employees or agents to give legal advice. The information on this website is for general informational purposes only and does not purport to be complete or to cover every situation. You must consult with your own legal advisors to determine how the specific state’s Paid Family and Medical/Disability Leave law(s) will affect you.