Leave administrator working with client

New Hampshire

On June 28, 2021, Governor Sununu signed the Granite State Paid Family Leave Act into law.

Leave administrator working with client

Granite State Paid Family Leave Act 

What is the Update?

The Department of Administrative Services (DAS) is currently in the process of establishing rules including setting up the Family and Medical Leave Insurance (FMLI) premium fund which will house contributions to the program. New Hampshire has targeted the program to begin January 1, 2023. Some facts we are aware of currently are:

  • While the law has been passed, New Hampshire house representatives introduced 2 bills, HB 1582, and HB 1165 in January with the aim of repealing the Granite State FMLI plan. The New Hampshire House has voted to repeal the bill. Next, it goes to the Senate who may decide the ultimate fate of the program. We will keep our clients posted.
  • The law provides cost-free paid family leave benefits to New Hampshire government employees.
  • All other employers may opt in on a voluntary basis if they have more than 50 employees and pay employer contributions to the program (the premium rate is to be determined). Those employers who do opt-into the program could receive a 50% tax credit on contributions they have made to the program.
  • Employees whose employers choose not to opt in may opt into the individual pool the program plans to offer and will pay a weekly contribution. Employers will be responsible for remitting employee contributions for those employees who do opt-into the program.
  • The maximum duration of FMLI benefits will be six weeks per year. The law allows for the DAS to implement a one-week waiting or elimination period, and eligible employees will receive 60% of their average weekly wage
  • Average Weekly Wage (AWW) during FMLI leave – wages used to determine the AWW will be capped at the social security taxable wage maximum.
  • Employees may take leave to care for a family member with a serious health condition, to bond with a new child, for qualifying military exigencies, and to care for a service member with a serious injury or illness.
  • Leave for an employee’s own serious health condition is only available if the employee’s injury or illness is not work-related, the employee has opted into the program, and the employer does not have a short term disability program.

Handbook/Policy Updates

More information to follow soon.  

Notice Requirements

More information to follow soon.  

Larkin Action

We will keep our clients informed of any new information, so they can consider whether they wish to participate in the program, for example.

Further Company Considerations 

N/A

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