4/7/2021
The Daily Bulletin: 2021-04-07 | Legislative Reporting Service
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The Daily Bulletin: 2021-04-07
PUBLIC/SENATE BILLS
S 564 (2021-2022) NC PAID FAMILY LEAVE INSURANCE ACT. Filed Apr 6 202 1 . AN ACT TO ENACT THE NORTH CAROLINA
PAID FAMILY LEA VE INSURANCE ACT.
Enacts new GS Chapter 96A. to be cited as the "North Carolina Paid Family Leave Insurance Act." Sets forth 15 defined terms
applicable to the Chapter. Deems family and medical leave benefits provided under the terms of the Chapter payable beginning
January 1 . 2023, to covered individuals , defined as any person who submits an application and meets the monetary eligibility
criteria set forth in GS 96-14. 1(b) (regarding unemployment benefit claims) or is self-employed, elects coverage, and meets the
requirements of new GS 96A-1 3, and meets the administrative requirements of the new Chapter and rules adopted thereunder,
who meet one of five requirements, including: ( 1 ) is caring for a new child during the first year after birth, adoption, or child
placement; (2) is caring for a family member with a serious health condition; (3) has a serious health condition; (4) is caring
for a covered sendee member, as defined, who is the covered individual's next of kin or other family member; and (5) because
of any qualifying exigency leave (as defined) arising out of the fact that the family member of the covered individual is on
active duty or has been notified of an impending call or order to active duty in the Armed Forces. Defines family member, next
of kin, and serious health condition. Specifies maximum duration of benefits based on eligibility requirement, ranging from 12
weeks to 26 weeks. Provides for payment within two weeks of filing a claim and every two weeks thereafter. Details
parameters regarding the determination of payment amounts, with the maximum benefit permitted to be 100% of the statewide
average weekly wage, and the minimum benefit set at S100 per week, unless the covered individual's average weekly wage is
less than the amount of that full wage. Bars payment for less than eight hours of leave taken in one work week.
Beginning on January 1. 2022, requires an employer to remit contributions to the Paid Family and Medical Leave Fluid (Fund),
at a rate annually fixed by the Assistant Secretary of the Division of Employment Security (DES). Provides for the setting of
contribution rates for 2022 and 2023, and 2024 and subsequent years. Defines employer to include individuals, partnerships,
associations, corporations, business trusts, legal representatives, any organized group, the State, political subdivisions of the
State and any State or local agency or government instrumentality; excludes the federal government. Requires self-employed
individual electing coverage to make employer contributions as specified. Bars deducting more than 50% of the contribution
required from that employee's wages.
Authorizes the covered individual to opt to take paid family and medical leave on an intermittent or reduced leave schedule
with prorated benefits, subject to total leave permitted by the Chapter, employer operations, and notice requirements.
Provides for the covered individual's restoration by the employer to the position held by the covered individual upon expiration
of family and medical leave as when the leave commenced, or a position with equivalent seniority, status, employment
benefits, pay, and other terms and conditions of employment. Requires employers to maintain health benefits the covered
individual had prior to leave for the leave duration, with the covered individual required to continue required applicable
contributions. Details employer liability for violation of these protection provisions, including damages for compensation
denied or lost with interest and liquidated damages, or actual monetary losses sustained up to a sum of 12 weeks of wages or
salary of the employee, and equitable relief. Allows for an action for damages to be brought in any federal or State court by
one or more employees against an employer for or on behalf of the employees or the employees and others similarly situated.
Provides for the award of costs of the action, such as reasonable attorneys' fees and expert witness fees. Establishes a two year
statute of limitations, with a three year statute of limitations for willful violations.
Bars prohibiting the exercise of or interfering with the exercise of rights protected by the Chapter. Prohibits retaliatory
personnel actions or otherwise discriminating against a person for exercising protected rights under the Chapter. Includes a
non-exhaustive list of rights protected under the Chapter to which the anti-retaliation provisions apply. Prohibits employers
from counting leave taken under the Chapter as an absence that can lead to or result in an adverse employment action. Makes
these provisions applicable to persons who allege violations in good faith. Provides for the liability provisions regarding
employment protections to apply to the anti-retaliation provisions.
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