Ohio lawmakers have introduced Senate Bill 396, a proposal that would create a statewide paid family and medical leave program for Ohio workers. The bipartisan bill would establish an insurance fund providing partial wage replacement benefits for employees, independent contractors, and business owners who take qualifying family or medical leave. If enacted, the proposal would significantly expand leave protections in Ohio beyond the unpaid leave currently available under the federal Family and Medical Leave Act (FMLA), creating new compliance considerations for Ohio employers.
As proposed, the fund would be managed by the State Treasurer and administered by the Ohio Department of Job and Family Services (ODJFS). It would provide employees, independent contractors, and business owners with benefits if they take leave to care for themselves or a family member. As the bill is currently drafted, qualifying reasons for leave mimic those under the FMLA:
- The individual’s own serious health condition
- Bonding with a new child (whether newly born or newly placed for foster care or adoption)
- A family member’s serious health condition
- Issues that arise when a military member is called to active duty
Under the current proposal, benefits for an ODJFS-approved claim are payable biweekly in an amount up to 85% of the individual’s average weekly wage (subject to a maximum benefit pegged to the statewide average weekly wage). While the FMLA provides up to 12 weeks of unpaid leave, Senate Bill 396 would allow an individual to take up to 14 weeks of paid leave for each qualifying reason, with a maximum of 18 weeks per year.
The program would be funded by payroll premiums paid by employees, independent contractors and business owners who elect coverage, and certain employers. According to Time to Care Ohio, the coalition backing Senate Bill 396, premiums would amount to 0.4% of wages for covered workers and 0.4% of payroll for employers with 15 or more employees. While employers with fewer than 15 employees would be exempt from paying premiums, their employees would still pay their share of premiums and be eligible for paid leave.
Like the FMLA, Senate Bill 396 would prohibit discrimination and retaliation against employees who take advantage of the available leave, and requires employers to reinstate an employee who takes leave to their same or an equivalent position upon their return.
But unlike the FMLA (which entitles established employees (1+ year of service) of large employers (50+ employees) to job-protected leave), Senate Bill 396 would extend leave benefits to almost all Ohio workers. That means employees, business owners, and independent contractors could receive salary continuation benefits, anti-discrimination protection, and reinstatement rights regardless of the length of their employment or their employer’s size.
If the proposed law is enacted, Ohio would join the 13 other states (plus the District of Columbia) that maintain mandatory paid family and medical leave insurance programs.
While Senate Bill 396 still faces a long road in the General Assembly, Ohio employers of all sizes should prepare for the possibility that their employees may soon be eligible for protected, paid family and medical leave. As they say, stay tuned . . .