New Hampshire: Voluntary Paid Family Leave Program Adopted

New Hampshire isn’t the first state to provide paid family leave, but its Granite State Paid Family Leave Plan differs from other state leave programs in several ways.

The new plan provides New Hampshire workers who take paid family leave with 60% wage replacement benefits for up to six weeks of work per year. Employees can use paid family leave for personal health or family reasons, such as birth of or care for a newborn child, caring for a spouse, child, or parent with a serious heath condition, or a personal serious health condition independent of employment if the employer does not offer short-term disability insurance.

Unlike other states, participation in the paid leave program is voluntary. The insurance carrier(s) that are awarded the state employee insurance contract must allow all public employers as well as private employers of 50 or more employees to opt-in to the plan. Employers who opt-in to the program must collect payroll deductions and provide some employment protections (e.g., continuation of health benefits on leave). Employers who opt-in will be provided tax credits as well.

Employees working for employers who do not participate in the program or offer equivalent paid leave programs can opt-in to the state program through the individual pool. Employers will still be required to remit the employee-paid premiums to the state via payroll deductions.

Although the bill became effective July 1, 2021, the Request for Proposal Process is set to begin no later than March 31, 2022, with a deadline for coverage to become available by January 1, 2023.

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