Bill
HB 499
North Carolina creates a state paid family and medical leave program offering up to 12 weeks or 18 weeks for own health, with benefits start in 2027.
Status / Sponsors
- Introduced: Filed March 24, 2025. Primary sponsor: Rep. Budd (with multiple co‑sponsors listed).
- Key dates in bill text: statutory provisions added effective January 1, 2026; benefits payable beginning January 1, 2027.
Purpose / Intent
- Establish a state family and medical leave insurance (FMLI) program—named the “North Carolina Paid Family Leave Insurance Act”—to provide paid leave benefits to eligible workers for bonding with a new child, caring for a family member or covered service member with a serious health condition, the worker’s own serious health condition, and certain military‑related exigencies.
Key definitions (selected)
- Application year: 12‑month period beginning on the first day of the calendar week in which an individual files for benefits.
- Covered individual: a person who meets monetary eligibility criteria (see cross‑reference to G.S. 96‑14.1(b)) or a self‑employed person who elects coverage, and who complies with administrative requirements and timely application.
- Family member: broad definition including children (biological, adopted, foster, step, in‑loco‑parentis), parents, spouses/domestic partners, grandparents, grandchildren, siblings, or other blood/close‑association relatives.
- Covered service member: current or former Armed Forces member receiving treatment/recuperation for a service‑connected serious injury or illness.
- Retaliatory personnel action: broadly defined to prohibit adverse employment actions for exercising rights under the Chapter.
Key provisions
- Establishes a new Chapter 96A in the General Statutes to create the state FMLI program administered by the Division of Employment Security (Assistant Secretary referenced for administration).
- Eligibility: begins by meeting monetary or elective self‑employed criteria plus administrative requirements and application. (Monetary eligibility references existing statute G.S. 96‑14.1(b).)
- Covered reasons for leave include:
- Birth, adoption, or foster care placement: bonding leave within 12 months of the event (or pre‑placement absence for adoption/foster placement);
- Caring for a family member with a serious health condition;
- Worker’s own serious health condition;
- Caring for a covered service member;
- Qualifying exigency related to a family member’s active military duty.
- Benefit durations (per application year):
- Up to 12 weeks for bonding (birth/adoption/foster), caregiving for a family member, or qualifying exigency leave.
- Up to 18 weeks for leave due to the worker’s own serious health condition.
- Administrative and rulemaking authority assigned to the Division of Employment Security; program procedures, claims, and eligibility to be implemented by rule.
Who would be affected
- Employees in North Carolina who meet the monetary eligibility test; employers across the state (including state and local governmental employers as defined) will be affected by program administration and employee leave claims.
- Self‑employed individuals may opt in by electing coverage and meeting the prescribed requirements.
- Health care providers and employers will be involved in certification processes and compliance; the Division will incur administrative responsibilities.
Timeline / Implementation
- Chapter becomes law effective January 1, 2026 (statutory framework).
- Benefits become payable beginning January 1, 2027 (claims and payments start date).
Potential impacts and open items
- Expands access to paid leave for bonding, caregiving, personal medical leave, and military‑related needs; may reduce income loss for workers during covered absences and increase job‑protected leave usage.
- The excerpted text does not include details on funding (contribution rates, employer/employee share), benefit calculation (wage replacement rates), interaction with federal FMLA, or appeals/enforcement mechanisms—these details are likely elsewhere in the bill or will be set by rule.
- Administrative costs and operational impact will fall to the Division of Employment Security; employers will have compliance obligations.
- Self‑employed participation is explicitly allowed (elective coverage), expanding optional access beyond standard W‑2 employees.
Notes
- The bill text shown is the enacted Chapter structure and initial program scaffolding (definitions, covered reasons, durations, administrative authority). Stakeholders should consult the full enacted statute or implementing rules for benefit amounts, funding mechanics, notice/claim processes, coordination with other leave laws, and enforcement procedures.
Compiled from official sources — confirm details with the bill’s official record.
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