Scott launches voluntary paid family leave program Critics say it's not enough

BY SUSAN A LLEN Vermont News & Media

MONTPELIER - In a proposal critics immediately argued didn't go far enough to protect Vermont families and workers, Gov. Phil Scott announced Tuesday that the state of Vermont will launch a voluntary paid family and medical leave program that will give all working Vermonters access to insurance by 2025.

The three-phased program would begin on July 1 and be available to state employees. The other two phases - added annually - would expand to employers with more than two employees, and finally to individual workers.

"I have long supported paid family and medical leave, provided it is voluntary and affordable," Scott said, devoting his weekly news conference Tuesday to the proposal. "By enrolling state employees to create a pool, and opening it up to all employers and individuals, I believe we can accomplish our shared goal of providing the peace of mind of paid family and medical leave more efficiently, affordably and quickly than imposing another mandatory broad-based tax on already over-burdened workers."

Scott called it a win-win-win, and said his Agency of Commerce and Community Development will focus on helping and encouraging employers to take advantage of the program.

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The state has hired The Hartford insurance company to create the plan, which the Scott administration called the Vermont Family and Medical Leave Insurance Plan. The governor said Tuesday this proposal is similar to one proposed in 2019 with New Hampshire. That plan stalled; New Hampshire launched its own family leave program.

The administration outlined the new plan in a statement issued Tuesday. The new insurance coverage offered by The Hartford will provide enrolled Vermont state employees 60 percent of their wages for six weeks for qualifying events, starting in July 2023. Those events include: • the birth of a child and to care for the newborn child within one year of birth;

• an employee's adoption of a child or foster care placement, and to care for the newly placed child within one year of placement;

• caring for the employee's spouse, child, stepchild, foster child or ward who lives with the employee, parent or parent of the employee's spouse who has a serious health condition;

• a serious health condition that makes the employee unable to perform the essential functions of their job;

• or any qualifying exigency if the employee's spouse, child or parent is a covered military member on "covered active duty," or to care for a covered service-member with a serious injury or illness if the eligible employee is the service-member's spouse, son, daughter, parent or next of kin.

In 2024, private and non-state public employers with two or more employees will have the ability to select from a number of plan options. And in the final phase, beginning in 2025, individuals who work for Vermont employers that do not offer the paid leave, self-employed Vermonters and employers with one employee can purchase coverage through the state's individual purchasing pool, which will be insured by The Hartford.

"The Hartford is thrilled to be selected as the insurance partner for the Vermont Paid Family and Medical Leave Insurance program," said Jonathan Bennett, head of group benefits at The Hartford, at the news conference. He cited The Hartford's long experience in the insurance industry, adding that the company insures about one in nine employees in the U.S. He spoke to the importance of peace of mind to workers trying to balance professional and personal challenges, adding, "We understand the value this (program) brings to Vermonters."

Scott and others in his administration said lawmakers and labor groups have generally agreed with the goals of the program. The differences, he said, have come down to costs. This voluntary program - essentially allowing employers to opt in, rather than mandating participation - and flexibility in designing specific coverage plans helps hold down costs. For example, employers could voluntarily choose to spend more to allow workers additional time off.

Kevin Gaffney, commissioner of the Department of Financial Regulation, said the program would cost the state about $2 million annually- about $4.50 per week - for each of its employees. As the program expands, costs are expected to climb to up to $8 per employee per week.

Gaffney said the state employees' union and state police troopers' union have agreed to the plan. He anticipates that the Democratically controlled Legislature and others will discuss and debate this program in the upcoming legislative session.

Lt. Gov. Molly Gray, who ran unsuccessfully for the Democratic nomination for U.S. House, was critical of Scott's plan, and will be co-hosting a Legislative Summit on Paid Family and Medical Leave on Thursday at the statehouse in Montpelier (ltgov.vermont.gov/ paidleavechildcaresummit.

"There is a generation of Vermonters who continue to find themselves as the sandwich generation - caring for aging parents and children at the same time," Gray said in a statement. "The administration's Paid Family and Medical Leave Insurance program announced today fails to address the need and circumstances of Vermont workers and families."

She objected to making the program voluntary, hard for employees to enroll without knowing of extenuating circumstances (like a parent's illness) in advance, only provides six weeks of leave for the birth of a child, and doesn't provide enough financial compensation - 60 percent of wages - to workers taking the time off.

Gray said she hopes lawmakers go further on this issue when they return to the statehouse in January.