VBSR: Committee Advances Scaled-Down Paid Leave Bill

Thank you, VBSR, for sharing this legislative update:

The House Ways & Means Committee voted 7-4 Friday to advance H.107, a bill creating a paid family and medical leave system in Vermont, after scaling back the proposal, including eliminating a payroll tax on employers.

H.107 would fund 12 weeks of parental bonding leave and 8 weeks of medical and care-giving leave for qualified employees. Employees on leave that make below the state’s living wage would receive 90% of their income and employees above that level would receive 50% of their salary. The benefit is funded by a 0.55% payroll on employee’s wages starting in July 2020.

The bill eliminates an employer payroll tax match as in the original version passed by the House General, Housing, and Military Affairs Committee earlier this year. But it does allow the employer to pay part or all of the employee tax, if they choose. It also allows employers to offer their own paid leave benefit as long as it is as generous as the state benefit.

Read a summary of the Paid Family and Medical Leave bill. The bill is expected to go to the House floor soon.

Vermont Businesses for Social Responsibility is a statewide, nonprofit business association with a mission to foster a business ethic in Vermont that recognizes the opportunity and responsibility of the business community to set a high standard for protecting the natural, human, and economic environments of our citizens.