Looking to expand options for employers and working families in Kentucky, the House Banking and Insurance Committee passed a Wednesday bill that would authorize insurers to offer paid family leave insurance plans in Kentucky.
House Bill 179, sponsored by Rep. Samara Heavrin, would help Kentucky employers who would like to offer an additional benefit to their employees by amending state law to allow voluntary paid family leave to be offered as an insurance product. Companies could choose to purchase this insurance to benefit their employees.
Paid family leave insurance would provide a temporary wage replacement for workers who need to take leave to provide care to a sick family member; bond with a child after the child’s birth, adoption, or placement for foster care; care for a family member in the military or a first responder who was injured in the line of duty; or for other reasons as outlined in the employer’s benefit plan. The employer’s plan would also determine the length of paid leave benefits.
Heavrin said the bill is the result of work by a bipartisan working group and is the first piece of the puzzle on this issue. She added that this is a market-driven policy proposal with no mandates on employers or employees.
Kentucky Chamber Center for Policy and Research Executive Director Dr. Charles Aull said the business community fully supports the legislation. It could help attract and retain employees by offering attractive benefits surrounding leave. He noted that business owners and other employers offering paid family leave benefits through self-insured models could see lower, more consistent costs through the voluntary insurance product.
Noting how this could help Kentucky’s competitiveness, Aull said similar legislation has been passed in at least six states, with employers in neighboring Tennessee and Virginia soon being able to offer this benefit. At the same time, it is active in states like Texas, Florida, and others.
Laura Leigh Latta of the American Council of Life Insurers told the committee that these benefits are increasingly popular from an employee perspective. If the bill becomes law, any insurers can issue the policies as a voluntary benefit.
House Bill 179 passed the committee unanimously and is now moved to the House floor for consideration.
