Paid Family and Medical Leave
Last Friday, shortly after our newsletter went out, the Senate voted 20-9-1 to pass the compromise version of H.107. Yesterday, the House followed with a vote of 89-58. The bill will need to be voted on once more before going to the Governor who has indicated he will veto it. The Administration is working to establish a voluntary version of the program.
The bill would provide 12 weeks of parental bonding leave to each parent of a new child and 8 weeks of leave to care for a family member. This benefit is paid for by 0.2% payroll tax assessed on the employee; the employer has the option of covering some, or all of, the cost. The bill also provides the opportunity for Vermonters to receive voluntary, opt-in coverage for their own illness or temporary disability for an additional 0.38% payroll assessment.
Employees on leave would be paid 90 percent of the average weekly wage that is less than or equal to 55 percent of Vermont’s average weekly wage. The portion of the employee’s average weekly wage that is greater than 55 percent of Vermont’s average weekly wage will be replaced at a 55 percent rate.
This version is different from the one that originally came before the legislature in some major ways:
- The mandatory payroll tax of 0.2% is assessed on employees, not employers, with the option for an employer to cover some or all of the tax if they so choose.
- The program would be administered by a private insurance carrier
- The expensive disability component of the program, at a payroll tax of 0.38%, is voluntary
- This program will cost taxpayers $28 million dollars as opposed to the over $80 million the program was originally slated to cost