Vermont joins New Hampshire in launching a voluntary paid family and medical leave program. Note: Virginia offers paid family leave as a form of private insurance that employers can voluntarily purchase for their employees.

Vermont’s Family and Medical Leave Insurance (VT-FMLI) program will be rolled out in three phases. Phase I will begin for Vermont state employees on July 1, 2023.

In Phase II, beginning on July 1, 2024, the program will be expanded to include private and non-state public employers with two or more employees. Employers are permitted but not required to offer this benefit.

Under Phase III, beginning July 1, 2025, employees of employers that do not offer VT-FMLI, self-employed individuals, and employers with one employee, will be able to purchase coverage through the program through an individual purchasing pool.

If the benefit is offered or selected, the employee will be able to receive insurance coverage to provide 60 percent wage replacement for six weeks for the following qualifying events:

• 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, 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 military exigency

The Governor has selected The Hartford to be the insurance partner for the Family and Medical Leave Insurance program. Additional information can be found on the Hartford’s family and medical leave webpage.

Vermont employers will want to keep an eye on this as there are limited details for phases two and three of this program.

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