U.S. Representative Drew Ferguson (R-Ga.), Chief Deputy Whip of the House Republican Conference and member of the House Ways and Means Committee, recently introduced H.R.5161, the Expand Small Employer Pooling Options for Paid Family Leave Act, to ensure fair and consistent options for family leave benefits offered by small businesses. This legislation will allow small and mid-sized businesses to jointly fund family leave benefits by grouping insurance options.
“Far too often, smaller companies are unable to afford paid leave benefits, creating a workforce gap and a greater disadvantage when competing for employees,” Ferguson said. “We must allow options for parity in treatment when it comes to family and medical leave benefits for employees of mom-and-pop shops. By providing the ability for small and mid-sized businesses to pool together insurance options, my legislation will enable employees have access to a full range of paid family and medical leave benefits – regardless of the size of the company they work for.”
Background:
The Expand Small Employer Pooling Options for Paid Family Leave Act:
- Clarifies the definition for establishing how small employers may jointly fund family leave benefits. This includes options for small businesses to purchase short-term disability insurance and utilize professional employer organizations. While current law allows mutual associations of employers to set aside funds tax-free to provide specified benefits to their employees, welfare benefits are not specifically defined to include family and medical leave insurance.
- Broadens the definition to recognize and include the full range of paid family and medical leave benefits. This will facilitate the use of Multiple Employer Welfare Arrangements (MEWA) to offer paid family and medical leave. A MEWA happens when a group of employers combines their contributions in a self-contributing benefits plan for the benefit of their employees.
- Requires DOL and IRS to make recommendations to Congress. Recommendations should be made within six months, including any statutory barriers or other changes to federal law needed to facilitate small business pooling for the purpose of providing paid family and medical leave. Recommendations should also provide a clear regulatory path forward for small businesses to pool resources, reduce costs, and lower administrative burdens.
Click here to read the bill text.
Original source can be found here.
