New Hampshire joined eight states and the District of Columbia when, on June 24, 2021, the New Hampshire Legislature passed a two-year state budget that includes a paid vacation program. Governor Chris Sununu signed the budget on June 25, 2021 and coverage is to be provided by January 1, 2023.
The voluntary program, called the Granite State Paid Family Leave Plan, offers New Hampshire workers a 60% wage replacement for up to six work weeks per year if they take time off for health or family reasons.
Employees who work for companies participating in the voluntary program can use the leave to:
The birth of a child or the care of a newborn during the first year;
For children newly adopted or placed in the first year;
Take care of the spouse, child or parent of an employee with a serious health problem;
Caring for a spouse, child or parent who is in the military;
A serious personal health problem unrelated to employment if the employer does not provide short-term disability insurance.
This paid family and medical leave program comes after several years of bipartisan debate on the issue. While some states have made participation in the paid vacation program mandatory, New Hampshire’s program is voluntary, meaning individuals and employers can choose whether or not to participate in the program.
The 10,000 government employees will automatically receive this benefit and serve as a risk pool for the program. The law requires that the insurance company, or the companies that obtain the state employee insurance contract, allow all public employers, as well as private employers with more than 50 employees, to adhere to the policies of the plan. Granite State Paid Family Leave.
Employers who choose to participate in the program must participate in payroll deductions and offer increased employment protections, such as continued health insurance coverage while on leave, as well as protection against discrimination and discrimination. reprisals resulting from the use of the leave.
Tax credits are given to employers who choose to participate in the program. Individuals working for employers who choose not to participate in the program or who have equivalent paid vacation programs can opt for the Granite State Paid Family Leave Plan through the Individual Pool. deduction.
The effective date of the law is July 1, 2021, requiring that the request for proposals process begin no later than March 31, 2022.
Jackson Lewis PC © 2021Revue nationale de droit, volume XI, number 197