FAMILY Act
- Bill Number
- S. 2823
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-09-16: Read twice and referred to the Committee on Finance.
- Last Updated
- 2025-12-05T21:38:06Z
AI-Generated Summary
Purpose
The Family and Medical Insurance Leave Act (FAMILY Act) aims to establish a national program providing paid benefits for family and medical leave. It expands access to financial support for individuals taking time off work for caregiving, personal health issues, or recovery from violence, building on the unpaid leave protections of the existing Family and Medical Leave Act (FMLA) of 1993.
Key Provisions
- Definitions and Scope:
- Defines "qualified caregiving" as non-work activities for reasons including bonding with a new child, caring for a family member with a serious health condition (a significant illness or injury requiring ongoing care), personal serious health conditions preventing work, or addressing family/domestic violence (e.g., seeking counseling, medical care, legal help, or safe relocation).
- Broadens "qualified family member" to include spouses, children (of any age), parents, siblings, grandparents, grandchildren, and others with family-like relationships; includes domestic partners in committed relationships.
- "Caregiving hour" is limited to 12 times an individual's regular weekly work hours per benefit period (typically 12 months).
- Covers wages from employment and self-employment; includes unemployment compensation in the definition.
- Administration:
- Creates the Office of Paid Family and Medical Leave within the Social Security Administration (SSA), led by a Deputy Commissioner.
- Responsibilities include determining eligibility, calculating and paying benefits, preventing fraud, providing public information, issuing annual employer notices, and producing utilization reports by demographics (e.g., gender, race, income).
- Requires data sharing with other federal agencies and a report to Congress on data access and application processing feasibility.
- Eligibility and Benefits:
- Eligible individuals must apply, have engaged (or anticipate engaging) in qualified caregiving, and have at least $2,000 (adjusted annually for wage growth) in recent wages or self-employment income.
- Benefits replace 85% of average monthly earnings up to a threshold (~$1,257 initially), 69% for mid-range earnings (~$1,257–$3,500), and 50% above that (up to ~$6,200); overall monthly cap starts at $4,000, minimum at $580 (both indexed to wages).
- Prorated for partial months based on caregiving hours (minimum 4 hours to qualify; zero if fewer).
- Benefit period: 12 months starting from the first month of caregiving (retroactive up to 90 days).
- Applications require statements, certifications (e.g., from healthcare providers for health conditions or authorities for violence), and notice to employers.
- Ineligible if receiving certain disability or SSI benefits; fraud convictions disqualify for 1 year.
- Benefits reduced by workers' compensation or unemployment payments.
- Quick review: Initial eligibility notice "as soon as practicable"; appeals within 20 days; monthly claims due 15 days after month-end, payments within 20 days.
- Protections and Enforcement:
- Prohibits employers from interfering with, denying, or retaliating against benefit use (e.g., firing, demoting); requires job restoration to the same or equivalent position and maintenance of health benefits during leave.
- Creates rebuttable presumption of retaliation for adverse actions within 12 months of leave.
- Individuals can sue for damages (lost wages, actual costs up to 60 days' pay, interest, liquidated damages), equitable relief (e.g., reinstatement), and attorney fees; Commissioner can also sue or seek injunctions.
- Applies SSA procedures for overpayments, appeals, and fraud penalties.
- Does not preempt stronger state laws or employer plans providing more generous leave.
- Legacy States:
- Provides grants to states with pre-existing comprehensive paid leave laws (enacted by bill's date) that cover at least 12 weeks at equivalent wage rates and share data.
- Grants equal the lesser of estimated federal benefits displaced or state program costs (up to 7% admin); allows states to distribute to employers providing benefits.
- Implementation:
- Regulations developed with input from a 15-member advisory body (appointed by President, congressional leaders) and considering state programs.
- Applications start 18 months after enactment.
- GAO to study processing times, delays, and data needs every 5 years starting after 2026.
Significant Changes to Existing Law
- Introduces paid benefits to the FMLA's unpaid leave framework, administered federally via SSA rather than employer-provided.
- Expands qualifying reasons beyond FMLA (e.g., adds violence recovery, broader family ties including domestic partners and siblings).
- Shifts from state-by-state variations to a national baseline, with opt-out funding for "legacy" states (e.g., California, New York) to maintain their programs.
- Adds wage replacement tiers and caps, prorated payments, and strong anti-retaliation rules with presumptions and private rights of action, unlike FMLA's limited enforcement.
Potential Impacts
- On Citizens: Provides financial security for up to 12 months of leave, potentially reducing poverty during health crises or caregiving; benefits ~85–50% wage replacement could support millions, especially low/mid-income workers, caregivers, and violence survivors. May increase leave-taking, improving family well-being and health outcomes.
- On Government Agencies: SSA gains a new office and responsibilities, requiring hiring, IT systems, and inter-agency data sharing; increases administrative costs (capped at 7% for legacy states). States with programs receive federal grants, easing burdens.
- On Employers: No direct payroll taxes (funding not specified in bill), but mandates compliance with job protections and notices; may reduce turnover and boost productivity, though small businesses could face restoration challenges.
- On International Relations: Minimal direct impact, though it aligns U.S. policy closer to other nations' paid leave standards, potentially affecting labor competitiveness discussions.
Main Stakeholders Affected
- Individuals and Families: Workers, self-employed, caregivers, those with serious health conditions, and victims/survivors of domestic/dating violence, family violence, sexual assault, stalking, or sex trafficking.
- Employers: Businesses of all sizes must provide notices, restore jobs, and maintain benefits; larger firms may integrate with existing policies.
- Government Entities: SSA (administration and payments), legacy states (grant recipients), Department of Labor (regulatory input), and federal agencies (data sharing).
- Advocacy Groups: Organizations supporting victims of violence, labor unions, and family policy experts influencing regulations via advisory body.
- Demographic Groups: Disproportionately benefits women, racial/ethnic minorities, low-income earners, and part-time/self-employed workers, per required utilization reports.
Notable Legal, Constitutional, or Political Implications
- Legal: Integrates SSA processes (e.g., appeals under 42 U.S.C. § 405) for efficiency but adds unique elements like prorated benefits and violence certifications; strong enforcement via private suits and presumptions could increase litigation compared to FMLA. Preserves state flexibility, avoiding preemption challenges.
- Constitutional: Relies on Congress's commerce power (like FMLA) to regulate employment; broad family definitions and violence inclusions may raise equal protection questions if challenged, but align with existing anti-discrimination laws.
- Political: Represents a partisan divide on federal paid leave (Democrat-led bill); could spark debates on costs (funding via future taxes implied but unspecified), work incentives, and equity. Advisory body and GAO oversight promote bipartisanship and accountability; annual demographic reports may highlight disparities, influencing future policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Gillibrand, Kirsten E. [D-NY]
Cosponsors (38)
Sen. Wyden, Ron [D-OR], Sen. Alsobrooks, Angela D. [D-MD], Sen. Baldwin, Tammy [D-WI], Sen. Bennet, Michael F. [D-CO], Sen. Blumenthal, Richard [D-CT], Sen. Blunt Rochester, Lisa [D-DE], Sen. Booker, Cory A. [D-NJ], Sen. Coons, Christopher A. [D-DE], Sen. Duckworth, Tammy [D-IL], Sen. Durbin, Richard J. [D-IL], Sen. Fetterman, John [D-PA], Sen. Gallego, Ruben [D-AZ], Sen. Hassan, Margaret Wood [D-NH], Sen. Heinrich, Martin [D-NM], Sen. Hirono, Mazie K. [D-HI], Sen. Kelly, Mark [D-AZ], Sen. Kim, Andy [D-NJ], Sen. Klobuchar, Amy [D-MN], Sen. Luján, Ben Ray [D-NM], Sen. Markey, Edward J. [D-MA], Sen. Merkley, Jeff [D-OR], Sen. Murphy, Christopher [D-CT], Sen. Murray, Patty [D-WA], Sen. Padilla, Alex [D-CA], Sen. Reed, Jack [D-RI], Sen. Rosen, Jacky [D-NV], Sen. Sanders, Bernard [I-VT], Sen. Schatz, Brian [D-HI], Sen. Schiff, Adam B. [D-CA], Sen. Schumer, Charles E. [D-NY], Sen. Shaheen, Jeanne [D-NH], Sen. Slotkin, Elissa [D-MI], Sen. Smith, Tina [D-MN], Sen. Van Hollen, Chris [D-MD], Sen. Warnock, Raphael G. [D-GA], Sen. Warren, Elizabeth [D-MA], Sen. Welch, Peter [D-VT], Sen. Whitehouse, Sheldon [D-RI]
Recent Actions
- 2025-09-16: Read twice and referred to the Committee on Finance.
- 2025-09-16: Introduced in Senate
Bill Versions
- Family and Medical Insurance Leave Act — issued 2025-09-16 — PDF (49 pages)