Enrollment is Open for NH’s Paid Family and Medical Leave Plan - What You Need to Know
Effective now, all NH businesses have an opportunity to enroll in a new voluntary insurance program: NH’s Paid Family and Medical Leave (NH PFML) Insurance Plan. This is the first voluntary PFML plan in the United States. NH businesses, in particular smaller businesses, struggle to provide adequate paid time off for NH employees who are sick or need to care for sick family members. While the incidents of COVID have decreased, employees are beset with ongoing health issues such as the flu and related illnesses which sometimes render them unable to work. NH PFML provides a worker benefit by providing wage replacement protection during an employee’s health crisis or care need, thereby reducing turnover and increasing employee morale and productivity.
If a NH business participates in the NH PFML Insurance Plan, it includes Paid Family and Paid Medical Leave together in a single insurance policy, 60% wage replacements for qualifying leave, and the leave can be taken all together or intermittently with a minimum of 4-hour increments. The Insurance Plan provides for two leave duration options: 6 or 12 weeks of paid leave.
The leave applies to NH employees only and covers:
· An employee’s own serious health condition, including childbirth, when disability coverages (short term and/or long term) do not apply;
· Time for an employee to bond with a child during the first year of birth, including placement for adoption or fostering;
· Time for an employee to care for a family member with a serious health condition;
· Time for an employee to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, child, parent or next of kin.
If an employee qualifies for short term disability or worker’s compensation, they will not qualify for NH PFML Insurance benefits for the same days absent. NH PFML Insurance will run concurrently with the federal FMLA when a business is covered and the employee is eligible.
To obtain NH PFML Insurance, employers can purchase through MetLife, the state’s insurance partner, and receive 50% Business Enterprise Tax (BET) Credit for the portion of the NH PFML premium the business pays, through other paid family and medical leave insurance plans approved by the NH Department of Insurance (No BET Tax Credit) or through self-insured employer equivalent benefit coverage (No BET Tax Credit). Employers may fully fund the NH PFML insurance premium cost, split it with employee or pass on the full cost to employees.
Even if an employer does not participate in the NH PFML Insurance Plan, individual NH employees can purchase a NH PFML individual plan until March 2, 2023. Employees who do so cannot be discriminated or retaliated against for accessing PFML benefits.
NH PFML Insurance Plan provides a cost-effect option to provide wage replacement income to employees who cannot work due to their own or a family member’s illness and would otherwise be out of work, unpaid. Even if your employer does not offer NH PFML Insurance, employees should investigate obtaining coverage to have the peace of mind that even when sick, you will have income coming in. If you have any questions about NH PFML and its applicability to other leave programs, please consult with an experienced employment lawyer.
P|K Tuned-In provides general legal information, not legal advice. You should consult your attorney for guidance specific to your particular situation.
