U.S. Rep. Drew Ferguson
Congressman Drew Ferguson (R-03-GA) says he wants to level the playing field when it comes to options for paid family leave for small companies in Georgia. Ferguson, Chief Deputy Whip of the House Republican Conference and member of the House Ways and Means Committee, introduced H.R.5161, the Expand Small Employer Pooling Options for Paid Family Leave Act which is designed to “allow small and mid-sized businesses to jointly fund family leave benefits by grouping insurance options.”
Among the highlights of the bill, The Expand Small Employer Pooling Options for Paid Family Leave Act will include options for small businesses to purchase short-term disability insurance and utilize professional employer organizations. While current law allows mutual associations of employers to set aside funds tax-free to provide specified benefits to their employees, welfare benefits are not specifically defined to include family and medical leave insurance. This bill clarifies the definition for establishing how small employers may jointly fund family leave benefits.
“Far too often, smaller companies are unable to afford paid leave benefits, creating a workforce gap and a greater disadvantage when competing for employees,” Ferguson said. “We must allow options for parity in treatment when it comes to family and medical leave benefits for employees of mom-and-pop shops. By providing the ability for small and mid-sized businesses to pool together insurance options, my legislation will enable employees to have access to a full range of paid family and medical leave benefits – regardless of the size of the company they work for.”
According to Ferguson, the legislation also:
● Broadens the definition to recognize and include the full range of paid family and medical leave benefits. This will facilitate the use of Multiple Employer Welfare Arrangements (MEWA) to offer paid family and medical leave. A MEWA happens when a group of employers combines their contributions in a self-contributing benefits plan for the benefit of their employees.
● Requires DOL and IRS to make recommendations to Congress. Recommendations should be made within six months, including any statutory barriers or other changes to federal law needed to facilitate small business pooling for the purpose of providing paid family and medical leave, and should also provide a clear regulatory path forward for small businesses to pool resources, reduce costs, and lower administrative burdens.
