Insights

New Paid Leave Program Adopted


On June 25, 2021, Gov. Sununu signed into law House Bill 2, a state budget bill that includes the Granite State Paid Family Leave Plan (among other matters). This new law requires paid family leave for state employees and provides a voluntary opt-in by both non-state employers and individual non-state employees. 

The program requires payroll deductions and certain employment protections, including health insurance coverage while on leave (among other protections). In addition, there is a tax credit provided to employers who opt-in to the program and the ability for individuals whose employers choose not to opt-in (or not required to participate) to participate through an individual pool.

As an overview, the benefit provides 60% wage replacement for up to six weeks per year. The qualifying reasons for leave appear to depend on whether the individual is a state employee, employed by an employer who chose to opt-in or an individual who chose to opt-in. As with many new laws, further guidance is anticipated for clarification. 

The effective date of this new law is July 1, 2021, with coverage required by January 1, 2023. Employers with employees in New Hampshire should be aware of these developments. 

House Bill 2 »