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Bill

Bill

SB 1241

An Act providing for mandatory Statewide paid parental leave for eligible employees; establishing the Paid Parental Leave Account and the Small Business Grant Program; imposing duties on the Department of Labor and Industry; making an appropriation; and imposing penalties.

2025-2026 Regular Session Introduced by Amanda Cappelletti and 12 co-sponsors

Pennsylvania bill mandates statewide paid parental leave for eligible workers with employer cost relief grants, establishing new state program overseen by Labor & Industry.

Referred to Labor & Industry
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WeVote Research Nonpartisan
Bill Summary · SB 1241

Legislative bill overview

SB 1241 would establish a mandatory statewide paid parental leave program in Pennsylvania for eligible employees, funded through a dedicated Paid Parental Leave Account. The bill also creates a Small Business Grant Program to help smaller employers manage the costs of providing leave, with the Department of Labor and Industry overseeing implementation and enforcement.

Why is this important

Paid parental leave affects workforce participation, particularly for women, and influences family economic security during critical early childcare periods. Pennsylvania currently has no statewide paid family leave program, making this a significant potential shift in employee benefits and employer obligations that would impact labor costs across the state.

Potential points of contention

  • Funding mechanism and employer costs: The bill requires clarification on whether leave is funded through payroll taxes on employees, employers, or both—a critical detail affecting implementation feasibility and business opposition
  • "Eligible employees" definition: The scope of coverage (full-time vs. part-time, private vs. public sector, business size thresholds) remains unclear and will determine who actually benefits
  • Small business impact and grant sufficiency: While a grant program exists, determining whether grants adequately offset costs for small employers or whether they create competitive disadvantages between grant-receiving and non-receiving businesses is contested

Compiled from official sources — confirm details with the bill’s official record.

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