TN bill would create insurance benefits to give state workers 12 weeks of paid family and medical leave

NASHVILLE, Tenn. — A bill filed in the Tennessee legislature would give state workers a chance to spend around three months with their families if they start caring for a new child after placement, adoption or birth.

HB 0673 was introduced by Representative Gloria Johnson (D - Knoxville). The bill would give state workers the opportunity to get "family and medical leave insurance benefits," letting them take 12 weeks of paid leave in four specific situations. Those situations are listed below.

1. Because of birth, adoption, or placement through foster care, an employee is caring for a new child during the first year after the birth, adoption, or placement.
2. In case an employee is caring for a family member with a serious health condition.
3. If an employee has a serious health condition that makes the covered individual unable to perform the functions of the position of the employee.
4. Because of a qualifying exigency arising out of the deployment of a family member of the employee.

Workers would be able to get benefits of up to 80% of their average weekly wage, up to a maximum of $1,000 per week. That amount could be adjusted to 90% of their average weekly wage. Benefits also would only be payable for more than one day's work, or at least eight hours.

The bill would also require the state treasurer to determine the premiums that employees would need to pay for the program. They would need to set it as a percentage of the employee's wages, and starting in January 2025 employees participating in the program would need to pay into it.

It would require the Tennessee Department of Labor and Workforce Development to create the insurance program using money from the family and medical leave insurance fund, which the bill creates. It would also need to create procedures for claims and will need to report projected and actual participation rates starting in 2027.

Workers who want to participate in the program would need to start paying into it on Jan. 1, 2025. Starting the following year, state employees would be able to claim benefits through it.

According to the bill's fiscal note, the bill would cost around $61.5 million for the fiscal year 2024 - 2025. Then, it would cost $16.7 million for the years after it.

The Senate's version of the bill, SB 0390, was introduced by Senator Charlane Oliver (D - Nashville). It will be discussed in the Senate Commerce and Labor Committee on March 20. The House Banking and Consumer Affairs Subcommittee will discuss it on March 21.