No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1714 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1714
To provide paid family and medical leave benefits to certain
individuals, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2023
Mrs. Gillibrand (for herself, Mr. Schumer, Mr. Booker, Mr. Blumenthal,
Mr. Cardin, Mr. Carper, Mr. Casey, Ms. Duckworth, Mr. Fetterman, Ms.
Hassan, Mr. Lujan, Mr. Menendez, Mrs. Murray, Mr. Padilla, Mr. Reed,
Mr. Sanders, Mr. Schatz, Mrs. Shaheen, Ms. Stabenow, Mr. Van Hollen,
Ms. Warren, Mr. Welch, Mr. Whitehouse, Mr. Bennet, Mr. Durbin, Mrs.
Feinstein, Mr. Heinrich, Ms. Klobuchar, Mr. Merkley, Ms. Smith, and Ms.
Rosen) introduced the following bill; which was read twice and referred
to the Committee on Finance
_______________________________________________________________________
A BILL
To provide paid family and medical leave benefits to certain
individuals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Family and Medical Insurance Leave
Act'' or the ``FAMILY Act''.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Caregiving day.--
(A) In general.--The term ``caregiving day'' means,
with respect to an individual, a calendar day in which
the individual engaged in qualified caregiving.
(B) Limitations.--An individual may not exceed--
(i) with respect to any month, 20
caregiving days; or
(ii) with respect to any benefit period, 60
caregiving days.
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner of Social Security.
(3) Deputy commissioner.--The term ``Deputy Commissioner''
means the Deputy Commissioner who heads the Office of Paid
Family and Medical Leave established under section 3(a).
(4) Eligible individual.--The term ``eligible individual''
means an individual who is entitled to a benefit under section
4 for a particular month, upon filing an application for such
benefit for such month.
(5) Qualified caregiving.--
(A) In general.--The term ``qualified caregiving''
means any activity engaged in by an individual, other
than regular employment, for a qualifying reason.
(B) Qualifying reason.--
(i) In general.--For purposes of
subparagraph (A), the term ``qualifying
reason'' means any of the following reasons for
taking leave:
(I) Any reason for which an
eligible employee would be entitled to
leave under subparagraph (A), (B), or
(E) of paragraph (1) of section 102(a)
of the Family and Medical Leave Act of
1993 (29 U.S.C. 2612(a)).
(II) In order to care for a
qualified family member of the
individual, if such qualified family
member has a serious health condition.
(III) Because of a serious health
condition that makes the individual
unable to perform the services required
under the terms of their regular
employment.
(IV) In order to, as a result of
domestic violence, sexual assault, or
stalking--
(aa) seek medical attention
for the employee or the
employee's child, parent,
spouse, domestic partner, or
any other individual related by
blood or affinity whose close
association with the employee
is the equivalent of a family
relationship, to recover from
physical or psychological
injury or disability caused by
domestic violence, sexual
assault, or stalking;
(bb) obtain or assist a
related person described in
item (aa) in obtaining services
from a victim services
organization;
(cc) obtain or assist a
related person described in
item (aa) in obtaining
psychological or other
counseling;
(dd) seek relocation; or
(ee) take legal action,
including preparing for or
participating in any civil or
criminal legal proceeding
related to or resulting from
domestic violence, sexual
assault, or stalking.
(ii) Qualified family member; serious
health condition.--In this subparagraph:
(I) Qualified family member.--The
term ``qualified family member'' means,
which respect to an individual--
(aa) a spouse (including a
domestic partner in a civil
union or other registered
domestic partnership recognized
by a State) or a parent of such
spouse;
(bb) a child (regardless of
age) or a child's spouse;
(cc) a parent or a parent's
spouse;
(dd) a sibling or a
sibling's spouse;
(ee) a grandparent, a
grandchild, or a spouse of a
grandparent or grandchild; and
(ff) any other individual
who is related by blood or
affinity and whose association
with the employee is equivalent
of a family relationship.
(II) Serious health condition.--The
term ``serious health condition'' has
the meaning given such term in section
101(11) of the Family and Medical Leave
Act of 1993 (29 U.S.C. 2611(11)).
(iii) Other definitions.--For purposes of
clause (i)(IV):
(I) Child.--The term ``child''
means, regardless of age, a biological,
foster, or adopted child, a stepchild,
a child of a domestic partner, a legal
ward, or a child of a person standing
in loco parentis.
(II) Domestic partner.--
(aa) In general.--The term
``domestic partner'', with
respect to an individual, means
another individual with whom
the individual is in a
committed relationship.
(bb) Committed relationship
defined.--The term ``committed
relationship'' means a
relationship between 2
individuals, each at least 18
years of age, in which each
individual is the other
individual's sole domestic
partner and both individuals
share responsibility for a
significant measure of each
other's common welfare. The
term includes any such
relationship between 2
individuals, including
individuals of the same sex,
that is granted legal
recognition by a State or
political subdivision of a
State as a marriage or
analogous relationship,
including a civil union or
domestic partnership.
(III) Domestic violence.--The term
``domestic violence'' has the meaning
given the term in section 40002(a) of
the Violence Against Women Act of 1994
(34 U.S.C. 12291(a)), except that the
reference in such section to the term
``jurisdiction receiving grant monies''
shall be deemed to mean the
jurisdiction in which the victim lives
or the jurisdiction in which the
employer involved is located. Such term
also includes ``dating violence'', as
that term is defined in such section.
(IV) Parent.--The term ``parent''
means a biological, foster, or adoptive
parent of an employee, a stepparent of
an employee, parent-in-law, parent of a
domestic partner, or a legal guardian
or other person who stood in loco
parentis to an employee when the
employee was a child.
(V) Sexual assault.--The term
``sexual assault'' has the meaning
given the term in section 40002(a) of
the Violence Against Women Act of 1994
(34 U.S.C. 12291(a)).
(VI) Spouse.--The term ``spouse'',
with respect to an employee, has the
meaning given such term by the marriage
laws of the State in which the marriage
was celebrated.
(VII) Stalking.--The term
``stalking'' has the meaning given the
term in section 40002(a) of the
Violence Against Women Act of 1994 (34
U.S.C. 12291(a)).
(VIII) Victim services
organization.--The term ``victim
services organization'' means a
nonprofit, nongovernmental organization
that provides assistance to victims of
domestic violence, sexual assault, or
stalking or advocates for such victims,
including a rape crisis center, an
organization carrying out a domestic
violence, sexual assault, or stalking
prevention or treatment program, an
organization operating a shelter or
providing counseling services, or a
legal services organization or other
organization providing assistance
through the legal process.
(C) Treatment of individuals covered by legacy
state comprehensive paid leave program.--
(i) In general.--For purposes of
subparagraph (A), an activity engaged in by an
individual shall not be considered as other
than regular employment if, for the time during
which the individual was so engaged, the
individual is taking leave from covered
employment under the law of a legacy State (as
defined in section 4(c)).
(ii) Unemployed.--In the case of an
individual who is no longer employed, such
individual shall be treated, for purposes of
clause (i), as taking leave from covered
employment under the law of a legacy State (as
so defined) with respect to the portion of the
time during which the individual was engaged in
an activity for a qualifying reason
corresponding to the share of the individual's
workweek that was in covered employment under
the law of a legacy State (as so defined).
(6) National average wage index.--The term ``national
average wage index'' has the meaning given such term in section
209(k)(1) of the Social Security Act (42 U.S.C. 409(k)(1)).
(7) Self-employment income.--The term ``self-employment
income'' has the same meaning as such term in section 211(b) of
such Act (42 U.S.C. 411(b)).
(8) State.--The term ``State'' means any State of the
United States or the District of Columbia or any territory or
possession of the United States.
(9) Wages.--The term ``wages'' has the meaning given such
term in section 3121(a) of the Internal Revenue Code of 1986
for purposes of the taxes imposed by sections 3101(b) and
3111(b) of such Code (without regard to section 3121(u)(2)(C)
of such Code), except that such term also includes--
(A) compensation, as defined in section 3231(e) of
such Code for purposes of the Railroad Retirement Tax
Act; and
(B) unemployment compensation, as defined in
section 85(b) of such Code.
SEC. 3. OFFICE OF PAID FAMILY AND MEDICAL LEAVE.
(a) Establishment of Office.--There is established within the
Social Security Administration an office to be known as the Office of
Paid Family and Medical Leave. The Office shall be headed by a Deputy
Commissioner who shall be appointed by the Commissioner.
(b) Responsibilities of Deputy Commissioner.--The Commissioner,
acting through the Deputy Commissioner, shall be responsible for--
(1) hiring personnel and making employment decisions with
regard to such personnel;
(2) issuing such regulations as may be necessary to carry
out the purposes of this Act;
(3) entering into cooperative agreements with other
agencies and departments to ensure the efficiency of the
administration of the program;
(4) determining eligibility for family and medical leave
insurance benefits under section 4;
(5) determining benefit amounts for each month of such
eligibility and making timely payments of such benefits to
entitled individuals in accordance with such section;
(6) establishing and maintaining a system of records
relating to the administration of such section;
(7) preventing fraud and abuse relating to such benefits;
(8) providing information on request regarding eligibility
requirements, the claims process, benefit amounts, maximum
benefits payable, notice requirements, nondiscrimination
rights, confidentiality, coordination of leave under this Act
and other laws, collective bargaining agreements, and employer
policies;
(9) annually providing employers a notice informing
employees of the availability of such benefits;
(10) annually making available to the public a report that
includes the number of individuals who received such benefits,
the purposes for which such benefits were received, and an
analysis of utilization rates of such benefits by gender, race,
ethnicity, and income levels; and
(11) tailoring culturally and linguistically competent
education and outreach toward increasing utilization rates of
benefits under such section.
(c) Availability of Data.--Notwithstanding any other provision of
law, the Commissioner shall make available to the Deputy Commissioner
such data as the Commissioner determines necessary to enable the Deputy
Commissioner to effectively carry out the responsibilities described in
subsection (b).
SEC. 4. FAMILY AND MEDICAL LEAVE INSURANCE BENEFIT PAYMENTS.
(a) In General.--
(1) Requirements.--Every individual who--
(A) has filed an application for a family and
medical leave insurance benefit in accordance with
subsection (d);
(B) was engaged in qualified caregiving, or
anticipates being so engaged, during the period that
begins 90 days before the date on which such
application is filed or within 30 days after such date;
(C) has wages or self-employment income at any time
during the period--
(i) beginning with the most recent calendar
quarter that ends at least 4 months prior to
the beginning of the individual's benefit
period specified in subsection (c); and
(ii) ending with the month before the month
in which such benefit period begins; and
(D) has at least the specified amount of wages and
self-employment income during the most recent 8-
calendar quarter period that ends at least 4 months
prior to the beginning of the individual's benefit
period specified in subsection (c),
shall be entitled to such a benefit for each month in such
benefit period.
(2) Specified amount.--For purposes of paragraph (1)(D),
the specified amount shall be--
(A) if the benefit period begins in calendar year
2024, $2,000; and
(B) if the benefit period begins in any calendar
year after 2024, an amount equal to the greater of--
(i) the specified amount applicable for the
preceding calendar year; or
(ii) an amount equal to the product of--
(I) $2,000; multiplied by
(II) an amount equal to the
quotient of--
(aa) the national average
wage index for the second
calendar year preceding such
calendar year; divided by
(bb) the national average
wage index for 2022.
(b) Benefit Amount.--
(1) In general.--Except as otherwise provided in this
subsection, the benefit amount to which an individual is
entitled under this section for a month shall be an amount
equal to the greater of--
(A) the lesser of--
(i) an amount equal to the monthly benefit
rate determined under paragraph (2); and
(ii) the maximum benefit amount determined
under paragraph (3); and
(B) the minimum benefit amount determined under
paragraph (3),
multiplied by the quotient (not greater than 1) obtained by
dividing the number of caregiving days of the individual in
such month by 20.
(2) Monthly benefit rate.--
(A) In general.--For purposes of this subsection,
the monthly benefit rate of an individual shall be an
amount equal to the sum of--
(i) 85 percent of the individual's average
monthly earnings to the extent that such
earnings do not exceed the amount established
for purposes of this clause by subparagraph
(B);
(ii) 69 percent of the individual's average
monthly earnings to the extent that such
earnings exceed the amount established for
purposes of clause (i) but do not exceed the
amount established for purposes of this clause
by subparagraph (B); and
(iii) 50 percent of the individual's
average monthly earnings to the extent that
such earnings exceed the amount established for
purposes of clause (ii) but do not exceed the
amount established for purposes of this clause
by subparagraph (B).
(B) Amounts established.--
(i) Initial amounts.--For individuals whose
benefit period begins in calendar year 2024,
the amount established for purposes of clauses
(i), (ii), and (iii) of subparagraph (A) shall
be $1,257, $3,500, and $6,200, respectively.
(ii) Wage indexing.--For individuals whose
benefit period begins in any calendar year
after 2024, each of the amounts so established
shall equal the corresponding amount
established for the calendar year preceding
such calendar year, or, if larger, the product
of the corresponding amount established with
respect to the calendar year 2024 and the
quotient obtained by dividing--
(I) the national average wage index
for the second calendar year preceding
such calendar year, by
(II) the national average wage
index for calendar year 2022.
(iii) Rounding.--Each amount established
under clause (ii) for any calendar year shall
be rounded to the nearest $1, except that any
amount so established which is a multiple of
$0.50 but not of $1 shall be rounded to the
next higher $1.
(C) Average monthly earnings.--For purposes of this
subsection, the average monthly earnings of an
individual shall be an amount equal to \1/12\ of the
wages and self-employment income of the individual for
the calendar year in which such wages and self-
employment income are the highest among the most recent
3 calendar years.
(3) Maximum and minimum benefit amounts.--
(A) In general.--For individuals who initially
become eligible for family and medical leave insurance
benefits in the first full calendar year after the date
of enactment of this Act, the maximum monthly benefit
amount and the minimum monthly benefit amount shall be
$4,000 and $580, respectively.
(B) Wage indexing.--For individuals who initially
become eligible for family and medical leave insurance
benefits in any calendar year after such first full
calendar year the maximum benefit amount and the
minimum benefit amount shall be, respectively, the
product of the corresponding amount determined with
respect to the first calendar year under subparagraph
(A) and the quotient obtained by dividing--
(i) the national average wage index for the
second calendar year preceding the calendar
year for which the determination is made, by
(ii) the national average wage index for
the second calendar year preceding the first
full calendar year after the date of enactment
of this Act.
(4) Reduction in benefit amount on account of receipt of
certain benefits.--A benefit under this section for a month
shall be reduced by the amount, if any, in certain benefits (as
determined under regulations issued by the Commissioner) as may
be otherwise received by an individual. For purposes of the
preceding sentence, certain benefits include--
(A) periodic benefits on account of such
individual's total or partial disability under a
workmen's compensation law or plan of the United States
or a State; and
(B) periodic benefits on account of an individual's
employment status under an unemployment law or plan of
the United States or a State.
(5) Coordination of benefit amount with certain state
benefits.--A benefit received under this section shall be
coordinated, in a manner determined by regulations issued by
the Commissioner, with the periodic benefits received from
temporary disability insurance or family leave insurance
programs under any law or plan of a State, a political
subdivision (as that term is used in section 218(b)(2) of the
Social Security Act (42 U.S.C. 418(b)(2))), or an
instrumentality of two or more States (as that term is used in
section 218(g) of such Act (42 U.S.C. 418(g))).
(c) Benefit Period.--
(1) In general.--Except as provided in paragraph (2), the
benefit period specified in this subsection is the 12-month
period that begins on the 1st day of the 1st month in which the
individual--
(A) meets the criteria specified in subparagraphs
(A) and (B) of subsection (a)(1); and
(B) would meet the criteria specified in
subparagraphs (C) and (D) of such subsection if such
subparagraphs were applied by substituting such 12-
month period for each reference to the individual's
benefit period.
(2) Retroactive benefits.--In the case of an application
for benefits under this section for qualified caregiving in
which the individual was engaged at any time during the 90-day
period preceding the date on which such application is
submitted, the benefit period specified in this subsection
shall begin on the later of--
(A) the 1st day of the 1st month in which the
individual engaged in such qualified caregiving; or
(B) the 1st day of the 1st month that begins during
such 90-day period,
and shall end on the date that is 365 days after the 1st day of
the benefit period.
(d) Application.--An application for a family and medical leave
insurance benefit shall include--
(1) a statement that the individual was engaged in
qualified caregiving, or anticipates being so engaged, during
the period that begins 90 days before the date on which the
application is submitted or within 30 days after such date;
(2) if the qualified caregiving described in the statement
in paragraph (1) is engaged in by the individual because of a
serious health condition (as defined in subclause (II) of
section 2(5)(B)(ii)) of the individual or a qualified family
member (as defined in subclause (I) of such section) of the
individual, a certification, issued by the health care provider
treating such serious health condition, that affirms the
information specified in paragraph (1) and contains such
information as the Commissioner shall specify in regulations,
which shall be no more than the information that is required to
be stated under section 103(b) of the Family and Medical Leave
Act of 1993 (29 U.S.C. 2613(b));
(3) if such qualified caregiving is engaged in by the
individual for any other qualifying reason (as defined in
section 2(5)(B)(i)), a certification, issued by a relevant
authority determined under regulations issued by the
Commissioner, that affirms the circumstances giving rise to
such reason; and
(4) an attestation from the applicant that his or her
employer has been provided with written notice of the
individual's intention to take family or medical leave, if the
individual has an employer, or to the Commissioner in all other
cases.
(e) Ineligibility; Disqualification.--
(1) Ineligibility for benefit.--An individual shall be
ineligible for a benefit under this section for any month for
which the individual is entitled to--
(A) disability insurance benefits under section 223
of the Social Security Act (42 U.S.C. 423) or a similar
permanent disability program under any law or plan of a
State or political subdivision or instrumentality of a
State (as such terms are used in section 218 of the
Social Security Act (42 U.S.C. 418));
(B) monthly insurance benefits under section 202 of
such Act (42 U.S.C. 402) based on such individual's
disability (as defined in section 223(d) of such Act
(42 U.S.C. 423(d))); or
(C) benefits under title XVI of such Act (42 U.S.C.
1381 et seq.) based on such individual's status as a
disabled individual (as determined under section 1614
of such Act (42 U.S.C. 1382c)).
(2) Disqualification.--An individual who has been convicted
of a violation under section 208 of the Social Security Act (42
U.S.C. 408) or who has been found to have used false statements
to secure benefits under this section, shall be ineligible for
benefits under this section for a 1-year period following the
date of such conviction.
(f) Review of Eligibility and Benefit Payment Determinations.--
(1) Eligibility determinations.--
(A) In general.--The Commissioner shall provide
notice to an individual applying for benefits under
this section of the initial determination of
eligibility for such benefits, and the estimated
benefit amount for a month in which one caregiving day
of the individual occurs, as soon as practicable after
the application is received.
(B) Review.--An individual may request review of an
initial adverse determination with respect to such
application at any time before the end of the 20-day
period that begins on the date notice of such
determination is received, except that such 20-day
period may be extended for good cause. As soon as
practicable after the individual requests review of the
determination, the Commissioner shall provide notice to
the individual of a final determination of eligibility
for benefits under this section.
(2) Benefit payment determinations.--
(A) In general.--The Commissioner shall make any
monthly benefit payment to an individual claiming
benefits for a month under this section, or provide
notice of the reason such payment will not be made if
the Commissioner determines that the individual is not
entitled to payment for such month, not later than 20
days after the individual's monthly benefit claim
report for such month is received. Such monthly report
shall be filed with the Commissioner not later than 15
days after the end of each month.
(B) Review.--If the Commissioner determines that
payment will not be made to an individual for a month,
or if the Commissioner determines that payment shall be
made based on a number of caregiving days in the month
inconsistent with the number of caregiving days in the
monthly benefit claim report of the individual for such
month, the individual may request review of such
determination at any time before the end of the 20-day
period that begins on the date notice of such
determination is received, except that such 20-day
period may be extended for good cause. Not later than
20 days after the individual requests review of the
determination, the Commissioner shall provide notice to
the individual of a final determination of payment for
such month, and shall make payment to the individual of
any additional amount not included in the initial
payment to the individual for such month to which the
Commissioner determines the individual is entitled.
(3) Burden of proof.--An application for benefits under
this section and a monthly benefit claim report of an
individual shall each be presumed to be true and accurate,
unless the Commissioner demonstrates by a preponderance of the
evidence that information contained in the application is
false.
(4) Definition of monthly benefit claim report.--For
purposes of this subsection, the term ``monthly benefit claim
report'' means, with respect to an individual for a month, the
individual's report to the Commissioner of the number of
caregiving days of the individual in such month, which shall be
filed no later than 15 days after the end of each month.
(5) Review.--All final determinations of the Commissioner
under this subsection shall be reviewable according to the
procedures set out in section 205 of the Social Security Act
(42 U.S.C. 405).
(g) Relationship With State Law; Employer Benefits.--
(1) In general.--This section does not preempt or supersede
any provision of State or local law that authorizes a State or
local municipality to provide paid family and medical leave
benefits similar to the benefits provided under this section.
(2) Greater benefits allowed.--Nothing in this Act shall be
construed to diminish the obligation of an employer to comply
with any contract, collective bargaining agreement, or any
employment benefit program or plan that provides greater paid
leave or other leave rights to employees than the rights
established under this Act.
(h) Employment and Benefits Protection and Enforcement.--
(1) Employment and benefits protection.--
(A) In general.--
(i) Prohibited acts.--It shall be unlawful
for any person to interfere with, restrain,
deny, or retaliate against an individual
because of the exercise of, or the attempt to
exercise, any right provided under this
section, including through--
(I) discharging or in any other
manner discriminating against
(including retaliating against) an
individual because the individual has
applied for, indicated an intent to
apply for, or received family and
medical leave insurance benefits; or
(II) using the application for or
the receipt of such benefits as a
negative factor in an employment
action.
(ii) Restoration to position.--It shall be
interference with the right of an individual
for purposes of clause (i) for an employer of
the individual to, upon the conclusion of any
leave for which the individual received a
family and medical leave insurance benefit
under this section, fail to--
(I) restore the individual to the
position of employment held by the
individual when the leave commenced; or
(II) restore the individual to an
equivalent position with equivalent
employment benefits, pay, and other
terms and conditions of employment.
(iii) Maintenance of health benefits.--It
shall be interference with the right of an
individual for purposes of clause (i) for an
employer of the individual to fail to maintain,
for the duration of any leave for which the
individual received a family and medical leave
insurance benefit under this section, coverage
of the individual under any group health plan
(as defined in section 5000(b)(1) of the
Internal Revenue Code of 1986) at the level and
under the conditions coverage would have been
provided if the individual had continued in
employment continuously for the duration of
such leave.
(B) Opposing unlawful practices.--It shall be
unlawful for any employer to discharge or in any other
manner discriminate against any individual for opposing
any practice made unlawful by this subsection.
(C) Interference with proceedings or inquiries.--It
shall be unlawful for any person to discharge or in any
other manner discriminate against any individual
because such individual--
(i) has filed any charge, or has instituted
or caused to be instituted any proceeding,
under or related to this subsection;
(ii) has given, or is about to give, any
information in connection with any inquiry or
proceeding relating to any right provided under
this section; or
(iii) has testified, or is about to
testify, in any inquiry or proceeding relating
to any right provided under this section.
(D) Rebuttable presumption of retaliation.--Any
adverse action (including any action described in
subparagraph (C) or (D)) taken against an employee
within 12 months of the employee taking any leave for
which the individual received a family and medical
leave insurance benefit under this section shall
establish a rebuttable presumption that the action of
the employer is retaliating against such employee in
violation of subparagraph (A)(i).
(E) Non-application for new hires.--Clauses (ii)
and (iii) of subparagraph (A) shall not apply to any
individual during the 90-day period beginning with the
day the individual begins work for an employer.
(2) Civil action by an individual.--
(A) Liability.--Any person who violates paragraph
(1) shall be liable to any individual employed by such
person who is affected by the violation--
(i) for damages equal to the sum of--
(I) the amount of--
(aa) any wages, salary,
employment benefits, or other
compensation denied or lost to
such individual by reason of
the violation; or
(bb) in a case in which
wages, salary, employment
benefits, or other compensation
have not been denied or lost to
the individual, any actual
monetary losses sustained by
the individual as a direct
result of the violation, such
as the cost of providing care,
up to a sum equal to 60
calendar days of wages or
salary for the individual;
(II) the interest on the amount
described in subclause (I) calculated
at the prevailing rate; and
(III) an additional amount as
liquidated damages equal to the sum of
the amount described in subclause (I)
and the interest described in subclause
(II), except that if a person who has
violated paragraph (1) proves to the
satisfaction of the court that the act
or omission which violated paragraph
(1) was in good faith and that the
person had reasonable grounds for
believing that the act or omission was
not a violation of paragraph (1), such
court may, in the discretion of the
court, reduce the amount of the
liability to the amount and interest
determined under subclauses (I) and
(II), respectively; and
(ii) for such equitable relief as may be
appropriate, including employment,
reinstatement, and promotion.
(B) Right of action.--An action to recover the
damages or equitable relief prescribed in subparagraph
(A) may be maintained against any person in any Federal
or State court of competent jurisdiction by any
individual for and on behalf of--
(i) the individual; or
(ii) the individual and other individuals
similarly situated.
(C) Fees and costs.--The court in such an action
shall, in addition to any judgment awarded to the
plaintiff, allow a reasonable attorney's fee,
reasonable expert witness fees, and other costs of the
action to be paid by the defendant.
(D) Limitations.--The right provided by
subparagraph (B) to bring an action by or on behalf of
any individual shall terminate--
(i) on the filing of a complaint by the
Commissioner in an action under paragraph (5)
in which restraint is sought of any further
delay in the payment of the amount described in
subparagraph (A)(I) to such individual by the
person responsible under subparagraph (A) for
the payment; or
(ii) on the filing of a complaint by the
Commissioner in an action under paragraph (3)
in which a recovery is sought of the damages
described in subparagraph (A)(I) owing to an
individual by a person liable under
subparagraph (A),
unless the action described in clause (i) or (ii) is
dismissed without prejudice on motion of the
Commissioner.
(3) Action by the commissioner.--
(A) Civil action.--The Commissioner may bring an
action in any court of competent jurisdiction to
recover the damages described in paragraph (2)(A)(I).
(B) Sums recovered.--Any sums recovered by the
Commissioner pursuant to subparagraph (A) shall be held
in a special deposit account and shall be paid, on
order of the Commissioner, directly to each individual
affected. Any such sums not paid to an individual
because of inability to do so within a period of 3
years shall be deposited into the Federal Family and
Medical Leave Insurance Trust Fund.
(4) Limitation.--
(A) In general.--An action may be brought under
this subsection not later than 3 years after the date
of the last event constituting the alleged violation
for which the action is brought.
(B) Commencement.--An action brought by the
Commissioner under this subsection shall be considered
to be commenced on the date when the complaint is
filed.
(5) Action for injunction by commissioner.--The district
courts of the United States shall have jurisdiction, for cause
shown, in an action brought by the Commissioner--
(A) to restrain violations of paragraph (1),
including the restraint of any withholding of payment
of wages, salary, employment benefits, or other
compensation, plus interest, found by the court to be
due to an individual; or
(B) to award such other equitable relief as may be
appropriate, including employment, reinstatement, and
promotion.
(i) Applicability of Certain Social Security Act Provisions.--The
provisions of sections 204, 205, 206, and 208 of the Social Security
Act shall apply to benefit payments authorized by and paid out pursuant
to this section in the same way that such provisions apply to benefit
payments authorized by and paid out pursuant to title II of such Act.
(j) Effective Date for Applications.--Applications described in
this section may be filed beginning 18 months after the date of
enactment of this Act.
SEC. 5. FUNDING FOR STATE ADMINISTRATION OPTION FOR LEGACY STATES.
(a) In General.--
(1) Payments to legacy states.--In each calendar year
beginning with calendar year 2025, the Commissioner shall make
a grant to each State that, for the calendar year preceding
such calendar year, was a legacy State and that met the data
sharing requirements of subsection (e), in an amount equal to
the lesser of--
(A) an amount, as estimated by the Commissioner,
equal to the total amount of comprehensive paid leave
benefits that would have been paid under section 4
(including the costs to the Commissioner to administer
such benefits, not to exceed (for purposes of
estimating such total amount under this subparagraph) 7
percent of the total amount of such benefits paid) to
individuals who received paid family and medical leave
benefits under a State law described in paragraph (1)
or (3) of subsection (b) during the calendar year
preceding such calendar year if the State had not been
a legacy State for such preceding calendar year; or
(B) an amount equal to the total cost of paid
family and medical leave benefits under a State law
described in paragraph (1) or (3) of subsection (b) for
the calendar year preceding such calendar year,
including--
(i) any paid family and medical leave
benefits provided by an employer (whether
directly, under a contract with an insurer, or
provided through a multiemployer plan) as
described in subsection (d); and
(ii) the full cost to the State of
administering such law (except that such cost
may not exceed 7 percent of the total amount of
paid family and medical leave benefits paid
under such State law).
(2) Estimated payments.--In any case in which, during any
calendar year, the Commissioner has reason to believe that a
State will be a legacy State and meet the data sharing
requirements of subsection (e) for such calendar year, the
Commissioner may make estimated payments during such calendar
year of the grant which would be paid to such State in the
succeeding calendar year, to be adjusted as appropriate in the
succeeding calendar year.
(b) Legacy State.--For purposes of this section, the term ``legacy
State'' for a calendar year means a State with respect to which the
Commissioner determines that--
(1) the State has enacted, not later than the date of
enactment of this Act, a State law that provides paid family
and medical leave benefits;
(2) for any calendar year that begins before the date that
is 3 years after the date of enactment of this Act, the State
certifies to the Commissioner that the State intends to remain
a legacy State and meet the data sharing requirements of
subsection (e) at least through the first calendar year that
begins on or after such date; and
(3) for any calendar year that begins on or after such
date, a State law of the State provides for a State program to
remain in effect throughout such calendar year that provides
comprehensive paid family and medical leave benefits (which may
be paid directly by the State or, if permitted under such State
law, by an employer pursuant to such State law)--
(A) for at least 12 full workweeks of leave during
each 12-month period to at least all of those
individuals in the State who would be eligible for
comprehensive paid leave benefits under section 4
(without regard to section 2(5)(C)), except that the
State shall provide such benefits for leave from
employment by the State or any political subdivision
thereof, and may elect to provide such benefits for
leave from any other governmental employment; and
(B) at a wage replacement rate that is at least
equivalent to the wage replacement rate under the
comprehensive paid leave benefit program under section
4 (without regard to section 2(5)(C)).
(c) Covered Employment Under the Law of a Legacy State.--For
purposes of this Act, the term ``covered employment under the law of a
legacy State'' means employment (or self-employment) with respect to
which an individual would be eligible to receive paid family and
medical benefits under the State law of a State, as described in
paragraph (1) or (3) of subsection (b), during any period during which
such State is a legacy State.
(d) Employer-Provided Benefits in a Legacy State.--
(1) Treatment for purposes of this title.--In the case of a
State that permits paid family and medical leave benefits to be
provided by an employer (whether directly, under a contract
with an insurer, or provided through a multiemployer plan)
pursuant to a State law described in paragraph (1) or (3) of
subsection (b)--
(A) such benefits shall be considered, for all
purposes under this Act, paid family and medical leave
benefits under the law of a legacy State; and
(B) leave for which such benefits are paid shall be
considered, for all such purposes, leave from covered
employment under the law of a legacy State.
(2) Distribution of grant funds.--In any case in which paid
family and medical leave benefits are provided by 1 or more
employers (whether directly, under a contract with an insurer,
or provided through a multiemployer plan) in a legacy State
pursuant to a State law described in paragraph (1) or (3) of
subsection (b), the State, upon the receipt of any grant amount
under subsection (a), may distribute an appropriate share of
such grant to each such employer.
(e) Data Sharing.--As a condition of receiving a grant under
subsection (a) in a calendar year, a State shall enter into an
agreement with the Commissioner under which the State shall provide the
Commissioner--
(1) with information, to be provided periodically as
determined by the Commissioner, concerning individuals who
received a paid leave benefit under a State law described in
paragraph (1) or (3) of subsection (b), including--
(A) each individual's name;
(B) information to establish the individual's
identity;
(C) dates for which such paid leave benefits were
paid;
(D) the amount of such paid leave benefit; and
(E) to the extent available, such other information
concerning such individuals as necessary for the
purpose of carrying out this section and section
2(5)(C);
(2) not later than July 1 of such calendar year, the amount
described in subsection (a)(2) for the calendar year preceding
such calendar year; and
(3) such other information as needed to determine
compliance with grant requirements.
SEC. 6. ESTABLISHMENT OF FAMILY AND MEDICAL LEAVE INSURANCE TRUST FUND.
(a) In General.--There is hereby created on the books of the
Treasury of the United States a trust fund to be known as the ``Federal
Family and Medical Leave Insurance Trust Fund''. The Federal Family and
Medical Leave Insurance Trust Fund shall consist of such gifts and
bequests as may be made as provided in section 201(i)(1) of the Social
Security Act (42 U.S.C. 401(i)(1)) and such amounts as may be
appropriated to, or deposited in, the Federal Family and Medical Leave
Insurance Trust Fund as provided in this section.
(b) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Federal Family and Medical Leave Insurance Trust Fund out
of moneys in the Treasury not otherwise appropriated--
(A) for the first 3 fiscal years beginning after
the date of enactment of this Act, such sums as may be
necessary for the Commissioner to--
(i) administer the office established under
section 3;
(ii) pay the benefits under section 4; and
(iii) provide the grants under section 5;
(B) 100 percent of the taxes imposed by sections
3101(c) and 3111(c) of the Internal Revenue Code of
1986 with respect to wages (as defined in section 3121
of such Code) reported to the Secretary of the Treasury
pursuant to subtitle F of such Code, as determined by
the Secretary of the Treasury by applying the
applicable rate of tax under such sections to such
wages;
(C) 100 percent of the taxes imposed by section
1401(c) of such Code with respect to self-employment
income (as defined in section 1402 of such Code)
reported to the Secretary of the Treasury on tax
returns under subtitle F of such Code, as determined by
the Secretary of the Treasury by applying the
applicable rate of tax under such section to such self-
employment income; and
(D) 100 percent of the taxes imposed by sections
3201(c), 3211(c), and 3221(c) of such Code with respect
to compensation (as defined in section 3231 of such
Code) reported to the Secretary of the Treasury on tax
returns under subtitle F of such Code, as determined by
the Secretary of the Treasury by applying the
applicable rate of tax under such sections to such
compensation.
(2) Repayment of initial appropriation.--Amounts
appropriated pursuant to subparagraph (A) of paragraph (1)
shall be repaid to the Treasury of the United States not later
than 10 years after the first appropriation is made pursuant to
such subparagraph.
(3) Transfer to trust fund.--The amounts described in
paragraph (2) shall be transferred from time to time from the
general fund in the Treasury to the Federal Family and Medical
Leave Insurance Trust Fund, such amounts to be determined on
the basis of estimates by the Secretary of the Treasury of the
taxes, specified in such paragraph, paid to or deposited into
the Treasury. Proper adjustments shall be made in amounts
subsequently transferred to the extent prior estimates were
inconsistent with the taxes specified in such paragraph.
(c) Management of Trust Fund.--The provisions of subsections (c),
(d), (e), (f), (i), and (m) of section 201 of the Social Security Act
(42 U.S.C. 401) shall apply with respect to the Federal Family and
Medical Leave Insurance Trust Fund in the same manner as such
provisions apply to the Federal Old-Age and Survivors Insurance Trust
Fund and the Disability Insurance Trust Fund.
(d) Benefits and Grants Paid From Trust Fund.--Benefit payments
required to be made under section 4 and grants provided under section 5
shall be made only from the Federal Family and Medical Leave Insurance
Trust Fund.
(e) Administration.--There are authorized to be made available for
expenditure, out of the Federal Family and Medical Leave Insurance
Trust Fund, such sums as may be necessary to pay the costs of the
administration of sections 4 and 5, including start-up costs, technical
assistance, outreach, education, evaluation, and reporting.
(f) Prohibition.--No funds from the Social Security Trust Fund or
appropriated to the Social Security Administration to administer Social
Security programs may be used for Federal Family and Medical Leave
Insurance benefits or administration set forth under this Act.
SEC. 7. INTERNAL REVENUE CODE PROVISIONS.
(a) In General.--
(1) Employee contribution.--Section 3101 of the Internal
Revenue Code of 1986 is amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on the income of every individual a tax equal to
the applicable percentage of the wages (as defined in section
3121(a)) received by the individual with respect to employment
(as defined in section 3121(b)).
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.2 percent in the
case of wages received in any calendar year.
``(3) Application of tax to federal, state, and local
employment.--For purposes of the tax imposed by paragraph (1)
and the application of section 3121(b) with respect to such
tax, rules similar to the rules under paragraphs (1) and (2) of
section 3121(u) shall apply (without regard to paragraph (2)(C)
of such section).''.
(2) Employer contribution.--Section 3111 of such Code is
amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on every employer an excise tax, with respect to
having individuals in his employ, equal to the applicable
percentage of the wages (as defined in section 3121(a)) paid by
the employer with respect to employment (as defined in section
3121(b)).
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.2 percent in the
case of wages paid in any calendar year.
``(3) Application of tax to federal, state, and local
employment.--For purposes of the tax imposed by paragraph (1)
and the application of section 3121(b) with respect to such
tax, rules similar to the rules under paragraphs (1) and (2) of
section 3121(u) shall apply (without regard to paragraph (2)(C)
of such section).''.
(3) Self-employment income contribution.--
(A) In general.--Section 1401 of such Code is
amended--
(i) by redesignating subsection (c) as
subsection (d); and
(ii) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed for each taxable year, on the self-employment
income of every individual, a tax equal to the applicable
percentage of the amount of the self-employment income for such
taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.4 percent in the
case of self-employment income in any taxable year.''.
(B) Exclusion of certain net earnings from self-
employment.--Section 1402(b)(1) of such Code is amended
by striking ``tax imposed by section 1401(a)'' and
inserting ``taxes imposed by subsections (a) and (c) of
section 1401''.
(b) Railroad Retirement Tax Act.--
(1) Employee contribution.--Section 3201 of such Code is
amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on the income of each employee a tax equal to
the applicable percentage of the compensation received during
any calendar year by such employee for services rendered by
such employee.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.2 percent in the
case of compensation received in any calendar year.''.
(2) Employee representative contribution.--Section 3211 of
such Code is amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on the income of each employee representative a
tax equal to the applicable percentage of the compensation
received during any calendar year by such employee
representative for services rendered by such employee
representative.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.2 percent in the
case of compensation received in any calendar year.''.
(3) Employer contribution.--Section 3221 of such Code is
amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by inserting after subsection (b) the
following:
``(c) Family and Medical Leave Insurance.--
``(1) In general.--In addition to other taxes, there is
hereby imposed on every employer an excise tax, with respect to
having individuals in his employ, equal to the applicable
percentage of the compensation paid during any calendar year by
such employer for services rendered to such employer.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 0.2 percent in the
case of compensation paid in any calendar year.''.
(c) Conforming Amendments.--
(1) Section 6413(c) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (1)--
(i) by inserting ``, section 3101(c),''
after ``by section 3101(a)''; and
(ii) by striking ``both'' and inserting
``each''; and
(B) in paragraph (2), by inserting ``or 3101(c)''
after ``3101(a)'' each place it appears.
(2) Section 15(a) of the Railroad Retirement Act of 1974
(45 U.S.C. 231n(a)) is amended by inserting ``(other than
sections 3201(c), 3211(c), and 3221(c))'' before the period at
the end.
(d) Effective Date.--The amendments made by this section shall take
effect 120 days after the date of the enactment of this Act.
SEC. 8. REGULATIONS.
The Commissioner, in consultation with the Secretary of Labor,
shall prescribe regulations necessary to carry out this Act. In
developing such regulations, the Commissioner shall consider the input
from a volunteer advisory body comprised of not more than 15
individuals, including experts in the relevant subject matter and
officials charged with implementing State paid family and medical leave
insurance programs. The Commissioner shall take such programs into
account when proposing regulations. Such individuals shall be appointed
as follows:
(1) Five individuals to be appointed by the President.
(2) Three individuals to be appointed by the majority
leader of the Senate.
(3) Two individuals to be appointed by the minority leader
of the Senate.
(4) Three individuals to be appointed by the Speaker of the
House of Representatives.
(5) Two individuals to be appointed by the minority leader
of the House of Representatives.
SEC. 9. GAO STUDY.
As soon as practicable after calendar year 2024, the Comptroller
General shall submit to Congress a report on family and medical leave
insurance benefits paid under section 4 for any month during the 1-year
period beginning on January 1, 2024. The report shall include the
following:
(1) An identification of the total number of applications
for such benefits filed for any month during such 1-year
period, and the average number of days occurring in the period
beginning on the date on which such an application is received
and ending on the date on which the initial determination of
eligibility with respect to the application is made.
(2) An identification of the total number of requests for
review of an initial adverse determination of eligibility for
such benefits made during such 1-year period, and the average
number of days occurring in the period beginning on the date on
which such review is requested and ending on the date on which
the final determination of eligibility with respect to such
review is made.
(3) An identification of the total number of monthly
benefit claim reports for such benefits filed during such 1-
year period, and the average number of days occurring in the
period beginning on the date on which such a claim report is
received and ending on the date on which the initial
determination of eligibility with respect to the claim report
is made.
(4) An identification of the total number of requests for
review of an initial adverse determination relating to a
monthly benefit claim report for such benefits made during such
1-year period, and the average number of days occurring in the
period beginning on the date on which such review is requested
and ending on the date on which the final determination of
eligibility with respect to such review is made.
(5) An identification of any excessive delay in any of the
periods described in paragraphs (1) through (4), and a
description of the causes for such delay.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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