“Like the landmark law passed in Virginia, the NCOIL proposal will enable employers to offer paid family leave solutions that protect their workers from economic loss,” says Susan Neely, President and CEO of the association.1 NCOIL is an association comprised of state lawmakers who develop model insurance laws for consideration by state legislatures.
Under the proposed legislation employers could voluntarily purchase family medical leave plans for their workers. The “Paid Family Leave Insurance Model Act,” sponsored by Minnesota State Senator Paul Utke (R) and Arkansas State Representative Deborah Ferguson, DDS (D) policies would pay benefits for2:
- After the birth of a child or adoption of a child
- When a child is placed with an employee for foster care
- To help an employee care for a family member
- When an employee’s family member in the military is on active duty or has been called
“The proposal before NCOIL would address a critical challenge facing today’s workers,” says Susan Neely, President and CEO of the association. “Too many face an impossible choice between earning a paycheck and taking time to care for a loved one. Like the landmark law passed in Virginia, the NCOIL proposal will enable employers to offer paid family leave solutions that protect their workers from economic loss.”
Virginia was the first state to establish a voluntary private family leave insurance market for employers, HB 1156 and SB 15. “Until today, there has been no state permitting companies to offer insurance plans that cover family leave benefits,” said Governor Glenn Youngkin. “I am proud to say that Virginia is leading the way by being the first state to pass legislation like this. It’s important to find solutions that balance the needs of workers with the flexibility needs of businesses, their employees and families.3”
While life insurance companies provide some paid medical leave benefits through short-term disability policies this proposal will expand and help to establish laws in states that permit companies to offer plans covering family leave. You can read the full NCOIL proposal here.