FAMILY Act
The FAMILY Act would create a new federal paid family and medical leave program called the Family and Medical Insurance Leave (FAMILY) program. Administered inside the Social Security Administration (SSA) by a Deputy Commissioner, the program would provide monthly insurance benefits to workers who take time away from work for caregiving. Eligible caregivers could include those caring for a seriously ill family member, for their own serious health condition, or for victims of certain violent acts, among other qualifying reasons. Benefits are calculated based on earnings, adjusted for the amount of caregiving hours, and subject to minimum and maximum monthly amounts that are indexed over time. The act also sets rules for eligibility periods, certifications, retroactive benefits in some cases, and offsets if the recipient is receiving other benefits. In addition to creating the program, the bill outlines protections for employees (and health coverage) and requires data sharing and public reporting to Congress. It does not preempt state paid leave laws, and it allows for greater benefits under existing contracts or state programs. Key elements include the establishment of an SSA Office of Paid Family and Medical Leave, a detailed formula for monthly benefit amounts, a definitions framework for caregiving hours and qualifying reasons, eligibility and appeal procedures, employment protections, and coordination with state law and other benefit programs. The act is introduced with strong bipartisan language around creating a national benefit, though the exact funding mechanism and administrative details would be clarified through implementing regulations and budget decisions.
Key Points
- 1Establishment of the Office of Paid Family and Medical Leave within the Social Security Administration, headed by a Deputy Commissioner responsible for eligibility, benefit calculations, payments, fraud prevention, data sharing, and reporting.
- 2Comprehensive definitions and scope for caregiving: a 1-hour “caregiving hour” for qualified caregiving, with a monthly cap (12 times the individual’s regular weekly hours) and a broad list of qualifying reasons (self or family member’s serious health condition, certain violence-related needs, and other FMLA-like scenarios).
- 3Benefit structure and funding-like design: monthly benefits are based on a rate determined by earnings (with a three-tier structure of 85%, 69%, and 50% of average monthly earnings up to indexed caps), multiplied by the proportion of caregiving hours in a month. There are also specified minimum and maximum monthly benefit amounts, initially set at $580 minimum and $4,000 maximum, with annual indexing to the national average wage index.
- 4Eligibility window, benefit period, and retroactivity: eligibility requires certain caregiving activity in a 90-day pre-application window and in the month after, plus sufficient past earnings. Benefits are paid for a 12-month benefit period, with special rules for retroactive benefits if caregiving occurred in the 90 days before application.
- 5Protections and enforcement: employers cannot interfere with or retaliate against individuals for exercising their rights under the act, must maintain health coverage during the leave, and must restore employees to their prior or equivalent positions. The act also clarifies coordination with state laws and allows greater benefits under other employee benefit programs.