By Guy Page
The House yesterday gave preliminary approval to H66, the mandatory, universal Paid Family, Medical, and Safety Leave bill.
The vote was 99 yes, 32 no, and 19 absent/not voting. See page 682 of House Journal for roll call votes. Following the initial approval, Gov. Scott indicated strong opposition to the bill. Also, a Senate proposal would offer greatly reduced PFMSL benefits in favor of spending more for child care. The bill is scheduled for final House approval today.
The House PFMSL bill would:
Cost more than $100 million per year in the first several years, and likely increase annually because the commissioner of the newly formed Paid Family and Medical Leave Division of the State of Vermont would set a tax rate every year to cover all likely claims. That rate would start at .55% of earnings (split evenly between employee and employer) but would be adjusted each year to cover the expenses of the coming year.
Adds about 60 new State of Vermont staff positions to oversee the new benefit.
That’s the financial and workforce impact Here are the proposed employee benefits.
PFL offers up to three months paid leave for all 30-hour per week employees of more than year for:
Family and medical leave – time off to care for a ‘family’ member, with family defined as a child, parent, guardian, spouse, loco parentis, someone like a family member, or someone with shared financial responsibility.
Safe leave – available for 12 paid weeks and an additional 12 unpaid weeks, to employees who have worked 20 hours or more for six months. “Safe leave” means a leave of absence from employment by an employee because:
- the employee or the employee’s family member is a victim or alleged victim of domestic violence, sexual assault, or stalking;
- the employee is using the leave for one of the following reasons related to the domestic violence, sexual assault, or stalking: (i) to seek or obtain medical care, counseling, or social or legal services, either for themselves or for a family member; (ii) to recover from injuries; (iii) to participate in safety planning, either for themselves or for a family member; (iv) to relocate or secure safe housing, either for themselves or for a family member; or (v) to meet with a State’s Attorney or law enforcement officer.
Governor Phil Scott issued the following statement regarding the paid family leave bill being considered by the House:
“It’s important to know, I support universal access to paid family and medical leave. That’s why my Administration put forward a voluntary program that is now being implemented.
“Today, however, the House of Representative is considering a bill that, instead of being voluntary, would impose a mandatory and regressive payroll tax on Vermonters, costing an estimated $117 million every year. The House also envisions building and funding a new program from scratch, requiring the addition of over 60 new state employees. This will be no easy task, as we are currently facing a workforce shortage and presently have over 800 open positions in state government that we’re unable to fill.
“This bill would rely on building out a whole new division, a complicated IT system, and more. My plan offers universal access to paid family and medical leave more efficiently and more cost effectively, and with far less risk to the State by using a third party administrator who knows what they’re doing, and wouldn’t have to start from scratch.
“With record state surpluses and high inflation, it is counterintuitive to force a new broad-base tax on already overburdened Vermonters – especially when there is an alternative path to achieve our goal.
“The Vermont Family and Medical Leave Insurance Plan my Administration is moving forward with provides Vermonters access to paid family and medical leave insurance faster, with a more stable, predictable system, provided by an experienced outside entity that is fully capitalized, and without imposing a new, regressive universal tax on workers and employers.”