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H499 • 2025

NC Paid Family Leave Insurance Act.

NC Paid Family Leave Insurance Act.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Budd, Cohn, Charles Smith, T. Brown, Ager, Alston, Baker, Ball, Belk, G. Brown, K. Brown, Buansi, Butler, Carney, Colvin, Dahle, Dew, Greenfield, Harrison, Hawkins, F. Jackson, Johnson-Hostler, Liu, Logan, Longest, Lopez, Majeed, Morey, G. Pierce, R. Pierce, Prather, Quick, Roberson, Rubin, Turner, von Haefen
Last action
2025-03-26
Official status
Ref To Com On Rules, Calendar, and Operations of the House
Effective date
2026-01-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

NC Paid Family Leave Insurance Act.

NC Paid Family Leave Insurance Act.

What This Bill Does

  • NC Paid Family Leave Insurance Act.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-26 House

    Ref To Com On Rules, Calendar, and Operations of the House

  2. 2025-03-26 House

    Passed 1st Reading

  3. 2025-03-24 House

    Filed

Official Summary Text

NC Paid Family Leave Insurance Act.

Current Bill Text

Read the full stored bill text
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 499

Short Title: NC Paid Family Leave Insurance Act. (Public)
Sponsors: Representatives Budd, Cohn, Charles Smith, and T. Brown (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 26, 2025
*H499-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Effective January 1, 2026, the General Statutes are amended by adding 4
a new Chapter to read: 5
"Chapter 96A. 6
"Paid Family Leave Insurance Act. 7
"§ 96A-1. Short title; definitions. 8
(a) This Chapter shall be known and may be cited as the "North Carolina Paid Family 9
Leave Insurance Act." 10
(b) The following definitions apply in this Chapter: 11
(1) Application year. – The 12 -month period beginning on the first day of the 12
calendar week in which an individual files an application for family and 13
medical leave insurance benefits. 14
(2) Assistant Secretary. – The Assistant Secretary of the Division of Employment 15
Security. 16
(3) Covered individual. – Any person who does all of the following: 17
a. Meets the monetary eligibility criteria set forth in G.S. 96-14.1(b) or 18
is self -employed, elects coverage , and meets the requirements of 19
G.S. 96A-13. 20
b. Meets the administrative requirements outlined in this Chapter and in 21
the rules adopted under this Chapter. 22
c. Submits an application. 23
(4) Covered service member. – Either: 24
a. A member of the Armed Forces , including a member of the National 25
Guard or Reserves, who is (i) undergoing medical treatment, 26
recuperation, or therapy, (ii) otherwise in outpatient status , or (iii) is 27
otherwise on the temporary disability retired list for a serious injury or 28
illness that was incurred by the member in the line of duty on active 29
duty in the Armed Forces or a serious injury or illness that existed 30
before the beginning of the member's active duty and was aggravated 31
by service in the line of duty on active duty in the Armed Forces; or 32
b. A former member of the Armed Forces, including a former member of 33
the National Guard or Reserves, who is undergoing medical treatment, 34
recuperation, or therapy for a serious injury or illness that was incurred 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 499-First Edition
by the member in the line of duty on active duty in the Armed Forces 1
or a serious injury or illness that existed before the beginning of the 2
member's active duty and was aggravated by service in the line of duty 3
on active duty in the Armed Forces and manifested before or after the 4
member was discharged or released from service. 5
(5) Division. – The Division of Employment Security of the Department of 6
Commerce. 7
(6) Employee. – Any individual employed by an employer. 8
(7) Employer. – Any person acting directly or indirectly in the interest of an 9
employer in relation to an employee. As used in this subdivision, "person" 10
means an individual, partnership, association, corporation, business trust, 11
legal representative, or any organized gr oup of persons. For the purposes of 12
this Chapter, it also means the State of North Carolina, any city, town, county, 13
municipality, or any State or local agency or instrumentality of government. 14
The term does not include the government of the United States and any agency 15
of the United States (including the United States Postal Service and Postal 16
Rate Commission). 17
(8) Family and medical leave insurance benefits. – The benefits provided under 18
the terms of this Chapter. 19
(9) Family member. – Any of the following: 20
a. Regardless of age, a biological, adopted , or foster child, stepchild, or 21
legal ward, a child of a domestic partner, a child to whom the employee 22
stands in loco parentis, or a person to whom the employee stood in 23
loco parentis when the person was a minor. 24
b. A biological, adoptive, or foster parent, stepparent , or legal guardian 25
of an employee or a n employee's spouse or domestic partner or a 26
person who stood in loco parentis when the employee or the 27
employee's spouse or domestic partner was a minor. 28
c. A person to whom the employee is legally married under the laws of 29
any state or a domestic partner of an employee as registered under the 30
laws of any state or political subdivision. 31
d. A grandparent, grandchild , or sibling (whether a biological, foster, 32
adoptive, or step relationship) of the employee or the employee 's 33
spouse or domestic partner. 34
e. Any other individual related by blood or whose close association with 35
the employee is the equivalent of a family relationship. 36
(10) Health care provider. – Any person licensed under federal or North Carolina 37
law to provide medical or emergency services, including , but not limited to , 38
doctors, nurses and emergency room personnel, or certified midwives. 39
(11) Next of kin. – As defined in section 101(17) of the Family and Medical Leave 40
Act, 29 U.S.C. § 2611(17). 41
(12) Qualifying exigency leave. – Leave based on a need arising out of a covered 42
individual's family member 's active duty service or notice of an impending 43
call or order to active duty in the Armed Forces, including, but not limited to, 44
providing for the care or other needs of the military member 's child or other 45
family member, making financial or legal arrangements for the military 46
member, attending counseling, atte nding military events or ceremonies, 47
spending time with the military member during a rest and recuperation leave 48
or following return from deployment , or making arrangements following the 49
death of the military member. 50
General Assembly Of North Carolina Session 2025
House Bill 499-First Edition Page 3
(13) Retaliatory personnel action. – Denial of any right guaranteed under this 1
Chapter, including, but not limited to , any threat, discharge, suspension, 2
demotion, reduction of hours, any other adverse action against an employee 3
for the exercise of any right guaranteed herein, or reporting or t hreatening to 4
report an employee 's suspected citizenship or immigration status or the 5
suspected citizenship or immigration status of a family member of the 6
employee to a federal, State, or local agency. Retaliatory personnel actions 7
shall also include inte rference with or punishment for in any manner 8
participating in or assisting an investigation, proceeding, or hearing under this 9
Chapter. 10
(14) Serious health condition. – An illness, injury, impairment, pregnancy, 11
recovery from childbirth, or physical or mental condition that involves 12
inpatient care in a hospital, hospice , or residential medical care facility, or 13
continuing treatment by a health care provider. 14
(15) State average weekly wage. – The average weekly insured wage as defined in 15
G.S. 96-1(b)(2). 16
"§ 96A-2. Eligibility for benefits. 17
Beginning January 1, 202 7, family and medical leave insurance benefits are payable to an 18
individual who: 19
(1) Meets the definition of "covered individual" as defined by G.S. 96A-1(b)(3); 20
and 21
(2) Meets one of the following requirements: 22
a. Because of birth, adoption, or placement through foster care, is caring 23
for a new child within 12 months of the anticipated birth, adoption, or 24
placement of that child , or has a need to be absent from work before 25
an actual placement of a ch ild in order for an adoption or foster care 26
to proceed. 27
b. Is caring for a family member with a serious health condition. 28
c. Has a serious health condition. 29
d. Is caring for a covered service member who is the covered individual's 30
next of kin or other family member. 31
e. Because of any "qualifying exigency leave" arising out of the fact that 32
the family member of the covered individual is on active duty (or has 33
been notified of an impending call or order to active duty) in the 34
Armed Forces. 35
"§ 96A-3. Duration of benefits. 36
(a) The maximum number of weeks during which family and medical leave insurance 37
benefits are payable under G.S. 96A-2(2)c. in an application year is 18 weeks. 38
(b) The maximum number of weeks during which family and medical leave insurance 39
benefits are payable under G.S. 96A-2(2)a., (2)b., or (2)e. in an application year is 12 weeks. 40
(c) The maximum number of weeks during which family and medical leave insurance 41
benefits are payable under G.S. 96A-2(2)d. in an application year is 26 weeks. 42
(d) The first payment of benefits must be made to an individual within two weeks after 43
the claim is filed, and subsequent payments must be made every two weeks thereafter. 44
"§ 96A-4. Amount of benefits. 45
(a) The amount of family and medical leave insurance benefits shall be determined as 46
follows: 47
(1) The weekly benefit shall be determined as follows: (i) t he portion of the 48
covered individual's average weekly wage that is equal to or less than one 49
hundred percent (100%) of the State average weekly wage shall be replaced 50
at a rate of ninety percent ( 90%) and (ii) the portion of an employee 's or 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 499-First Edition
self-employed individual's average weekly wage that is more than one 1
hundred percent (100%) of the State average weekly wage shall be replaced 2
at a rate of fifty percent (50%). 3
(2) The maximum benefit shall be one hundred percent ( 100%) of the statewide 4
average weekly wage. 5
(3) The minimum weekly benefit shall not be less than one hundred dollars 6
($100.00) per week except that if the covered individual 's average weekly 7
wage is less than one hundred dollars ($100.00) per week, the weekly benefit 8
shall be the employee's full wage. 9
(4) For purposes of this section, a covered individual's average weekly wage shall 10
be the average weekly wage during the 12 months preceding submission of 11
the application (or the average weekly wage during the time the covered 12
individual worked, if it was less than 12 months). 13
(b) A covered individual with multiple jobs may elect whether to take leave from one job 14
or multiple jobs. 15
(c) Family and medical leave insurance benefits pursuant to G.S. 96A-2(2)c. shall be 16
reduced by the amount of benefits that a covered individua l received under G.S. 96-6. During 17
any period of leave pursuant to G.S. 96A-2(2)c., family and medical leave insurance benefits 18
shall be reduced by the amount of benefits or wage replacement that a covered individual receives 19
under the Workers ' Compensation Law of this State, other than for partial disability under the 20
State Workers ' Compensation Law, or under other State or federal temporary or permanent 21
disability benefits law. The Assistant Se cretary shall adopt regulations to establish additional 22
requirements concerning the coordination of family and medical leave insurance benefits with 23
workers' compensation benefits for partial disability under the Workers ' Compensation Law of 24
this State. 25
"§ 96A-5. Contributions. 26
(a) Payroll contributions shall be authorized in order to finance the payment of benefits 27
under the family and medical leave insurance program. 28
(b) Beginning on January 1, 2026, for each employee, an employer shall remit to the Paid 29
Family and Med ical Leave Fund (Fund), established under G.S. 96A-16, contributions in the 30
form and manner determined by the Division. Annually, not later than October 1, the Assistant 31
Secretary shall fix the contribution rate for the coming calendar year in the manner described in 32
this subsection. For calendar years 202 6 and 2027, the Assistant Secretary shall do so based on 33
sound actuarial principles. For calendar year 202 8 and thereafter, the Assistant Secretary shall 34
first certify and publish the following information: 35
(1) The total amount of family and medical leave ins urance benefits paid by the 36
Division during the previous fiscal year; 37
(2) The total amount remaining in the Fund at the close of the fiscal year; 38
(3) The total amount equal to one hundred forty percent ( 140%) of the previous 39
fiscal year's expenditure for family and medical leave insurance benefits paid 40
and for the administration of the family and medical leave insurance program; 41
(4) The amount by which the total amount remaining in the Fund at the close of 42
the previous fiscal year is less than or greater than one hundred forty percent 43
(140%) of the previous fiscal year's expenditure for family and medical leave 44
insurance benefits paid and for the administration of the family and medical 45
leave insurance program; and 46
(5) The amount by which the contribution rate shall be adjusted to ensure that the 47
Fund shall maintain or achieve an annualized amount of not less than one 48
hundred forty per cent ( 140%) of the previous fiscal year 's expenditure for 49
family and medical leave insurance benefits paid and for the administration of 50
the family and medical leave insurance program. The contribution rate 51
General Assembly Of North Carolina Session 2025
House Bill 499-First Edition Page 5
adjustment, if any, made as the result of the Assistant Secretary's certification 1
and report under this subsection shall supersede the rate previously set forth 2
and shall become effective on January 1 of the following calendar year. 3
(c) A self -employed individual who is electing coverage under G.S. 96A-13 shall be 4
responsible for the employee's share of contributions set forth in subsection (b) of this section on 5
that individual's income from self-employment. 6
(d) An employer shall not deduct more than fifty percent ( 50%) of the contribution 7
required for an employee by subsection (b) of this section from that employee's wages and shall 8
remit the full contribution required under said subsection to the Fund. 9
"§ 96A-6. Reduced leave schedule. 10
(a) A covered individual shall be entitled, at the option of the covered individual, to take 11
paid family and medical leave on an intermittent or reduced leave schedule in which all of the 12
leave authorized under this Chapter is not taken sequentially. Family and medical leave insurance 13
benefits for intermittent or reduced leave schedules shall be prorated. 14
(b) The covered individual shall make a reasonable effort to schedule paid family and 15
medical leave under this section so as not to unduly disrupt the operations of the employer. The 16
covered individual shall provide the employer with prior notice of the schedule on which the 17
covered individual will tak e the leave, to the extent practicable. Paid family and medical leave 18
taken under this section shall not result in a reduction of the total amount of leave to which an 19
employee is entitled beyond the amount of leave actually taken. 20
(c) Nothing in this section shall be construed to entitle a covered individual to more leave 21
than required under G.S. 96A-3. 22
"§ 96A-7. Leave and employment protection. 23
(a) Any covered individual who exercises his or her right to family and medical leave 24
insurance benefits shall, upon the expiration of that leave, be entitled to be restored by the 25
employer to the position held by the covered individual when the leav e commenced, or to a 26
position with equivalent seniority, status, employment benefits, pay , and other terms and 27
conditions of employment , including fringe benefits and service credits that the covered 28
individual had been entitled to at the commencement of leave. 29
(b) During any leave taken pursuant to G.S. 96A-2, the employer shall maintain any 30
health care benefits the covered individual had prior to taking such leave for the duration of the 31
leave as if the covered individual had continued in employment continuously from the date he or 32
she commenced the leave unti l the date the family and medical leave insurance benefits 33
terminate; provided, however, that the covered individual shall continue to pay the covered 34
individual's share of the cost of health benefits as required prior to the commencement of the 35
leave. 36
(c) Any employer who violates this section or G.S. 96A-8 shall be liable to any eligible 37
employee affected as follows: 38
(1) For damages equal to the amount of (i) any wages, salary, employment 39
benefits, or other compensation denied or lost to such employee by reason of 40
the violation, (ii) in a case in which wages, salary, employment benefits, or 41
other compensation have not been denied or lost to the employee, any actual 42
monetary losses sustained by the employee as a direct result of the violation, 43
such as the cost of providing care, up to a sum equal to 12 weeks of wages or 44
salary for the employee, (iii) the interest on the amount described in clause (i) 45
of this subdivision calculated at the prevailing rate , and (i v) an additional 46
amount as liquidated damages eq ual to the sum of the amount described in 47
clause (i) of this subdivision and the interest described in clause (ii) of this 48
subdivision, except that if an employer who has violated this section or 49
G.S. 96A-8 proves to the satisfaction of the court that the act or omission 50
which violated the section was in good faith and that the employer had 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 499-First Edition
reasonable grounds for believing that the act or omission was not a violation, 1
the court may, in the discretion of the court, reduce the amount of the liability 2
to the amount and interest determined under clauses (i) and (ii) of this 3
subdivision, respectively. 4
(2) For such equitable relief as may be appropriate, including employment, 5
reinstatement, and promotion. 6
(d) An action to recover the damages or equitable relief prescribed in subsection (c) of 7
this section may be maintained against any employer (including a public agency) in any federal 8
or State court of competent jurisdiction by any one or more employees for and on behalf of the 9
employees or the employees and other employees similarly situated. 10
(e) The court in such an action shall, in addition to any judgment awarded to the plaintiff, 11
allow a reasonable attorney's fee, reasonable expert witness fees, and other costs of the action to 12
be paid by the defendant. 13
(f) Except as provided by subsection (g) of this section, an action may be brought under 14
this section not later than two years after the date of the last event constituting the alleged 15
violation for which the action is brought. 16
(g) In the case of an action brought for a willful violation of this section or G.S. 96A-8, 17
the action may be brought within three years of the date of the last event constituting the alleged 18
violation for which such action is brought. 19
"§ 96A-8. Retaliatory personnel actions prohibited. 20
(a) It shall be unlawful for an employer or any other person to interfere with, restrain, 21
deny the exercise of, or the attempt to exercise any right protected under this Chapter. 22
(b) An employer, temporary help company, employment agency, employee organization, 23
or other person shall not take retaliatory personnel action or otherwise discriminate against a 24
person because he or she exercised rights protected under this Chapter. Such rights include , but 25
are not limited to, the right to request, file for, apply for, or use benefits provided for under this 26
Chapter; to take leave from work under this Chapter; communicate to the employer or any other 27
person or entity an intent to file a claim, a complaint with the Division or courts, or an appeal; or 28
has testified or is about to testify or has assisted in any investigation, hearing, or proceeding under 29
this Chapter, at any time, including during the period in which the person receives family and 30
medical leave insuran ce benefits under this Chapter; inform any person about any employer 's 31
alleged violation of this Chapter; and the right to inform any person of his or her rights under this 32
Chapter. 33
(c) It shall be unlawful for an employer's absence control policy to count paid family and 34
medical leave taken under this Chapter as an absence that may lead to or result in discipline, 35
discharge, demotion, suspension, or any other adverse action. 36
(d) Protections of this section shall apply to any person who mistakenly, but in good faith, 37
alleges violations of this Chapter. 38
(e) This section shall be enforced as provided in subsections (c) through (g) of 39
G.S. 96A-7. 40
"§ 96A-9. Coordination of benefits. 41
(a) Leave taken with wage replacement under this Chapter that also qualifies as leave 42
under the Family and Medical Leave Act shall run concurrently with leave taken under the 43
Family and Medical Leave Act. 44
(b) An employer may require that payment made pursuant to this Chapter be made 45
concurrently or otherwise coordinated with payment made or leave allowed under the terms of 46
disability or family care leave under a collective bargaining agreement or employer policy. The 47
employer must give employees written notice of this requirement. 48
(c) This Chapter does not diminish an employer 's obligation to comply with any of the 49
following that provide more generous leave: 50
(1) A collective bargaining agreement; 51
General Assembly Of North Carolina Session 2025
House Bill 499-First Edition Page 7
(2) An employer policy; or 1
(3) Any law. 2
(d) An individual's right to leave under this Chapter may not be diminished by a collective 3
bargaining agreement entered into or renewed, or an employer policy adopted or retained, after 4
the effective date of this Chapter. Any agreement by an individual to waive his or her rights under 5
this Chapter is void as against public policy. 6
(e) Notwithstanding thi s subsection, under no circumstances shall an employee be 7
required to use or exhaust any accrued vacation leave, sick leave, or other paid time off prior to 8
or while receiving family and medical leave insurance under this Chapter. However, a n 9
individual may choose to use any accrued vacation leave, sick leave, or other paid time off while 10
receiving family or medical leave insurance benefits under this Chapter, unless the aggregate 11
amount a covered individual would receive would exceed the cove red individual 's average 12
weekly earnings. Nothing in this subsection requires an employee to receive or use additional 13
paid time off as described in this section. 14
"§ 96A-10. Notice. 15
(a) Each employer shall provide written notice to each employee upon hiri ng and 16
annually thereafter. An employer shall also provide written notice to an employee when the 17
employee requests leave under this Chapter or when the employer acquires knowledge that an 18
employee's leave may be for a qualifying reason under G.S. 96A-2. Such notice shall include (i) 19
the employee's right to family and medical leave insurance benefits under this Chapter and the 20
terms under which it may be used, (ii) the amount of family and medical leave insurance benefits, 21
(iii) the procedure for filing a c laim for benefits , (iv) the right to job protection and benefits 22
continuation under G.S. 96A-7, (v) that discrimination and retaliatory personnel actions against 23
a person for requesting, applying for , or using family and medical leave insurance benefits is 24
prohibited under G.S. 96A-8, and (vi) that the employee has a right to file a complaint for 25
violations of this Chapter. An employer shall also display and maintain a poster in a conspicuous 26
place accessible to employees at the employer 's place of business that contains the information 27
required by this section in English, Spanish, and any language that is the first language spoken 28
by at least five percent ( 5%) of the employer 's workforce, provided that such notice has been 29
provided by the Division. The Assistant Secretary may adopt regulations to establish additional 30
requirements concerning the means by which employers shall provide such notice. 31
(b) Employees shall provide notice to their employers as soon as practicable of their 32
intention to take leave under this Chapter. 33
"§ 96A-11. Enforcement. 34
(a) The Assistant Secretary shall establish a system for appeals in the case of a denial of 35
family and medical leave insurance benefits. In establishing such system, the Assistant Secretary 36
may utilize any and all procedures and appeals mechanisms established under G.S. 96-15. 37
(b) Judicial review of any decision with respect to family and medical leave insurance 38
benefits shall be permitted in a court of competent jurisdiction after a party aggrieve d thereby 39
has exhausted all administrative remedies established by the Assistant Secretary. 40
(c) The Assistant Secretary shall implement procedures to ensure confidentiality of all 41
information related to any claims filed or appeals taken to the maximum exte nt permitted by 42
applicable laws. 43
"§ 96A-12. Erroneous payments and disqualification for benefits. 44
(a) A covered individual is disqualified from family and medical leave insurance benefits 45
for one year if the individual is determined by the Assistant Secre tary to have willfully made a 46
false statement or misrepresentation regarding a material fact or willfully failed to report a 47
material fact to obtain benefits under this Chapter. 48
(b) If family and medical leave insurance benefits are paid erroneously or as a result of 49
willful misrepresentation, or if a claim for family and medical leave insurance benefits is rejected 50
after benefits are paid, the Division may seek repayment of benefits from the recipient. The 51
General Assembly Of North Carolina Session 2025
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Assistant Secretary shall exercise his or her disc retion to waive, in whole or in part, the amount 1
of any such payments where the recovery would be against equity and good conscience. 2
"§ 96A-13. Elective coverage. 3
(a) A self-employed person, including a sole proprietor, partner , or joint venturer, may 4
elect coverage under this Chapter for an initial period of not less than three years. The 5
self-employed person must file a notice of election in writing with the Assistant Secretary as 6
required by the Division. The election becomes effective on the date of filing the notice. As a 7
condition of election, the self-employed person must agree to supply any information concerning 8
income that the Division deems necessary. 9
(b) A self -employed person who has elected coverage may withdraw from coverage 10
within 30 days after the end of the three -year period of coverage, or at such other times as the 11
Assistant Secretary may prescribe by rule, by filing written notice with the Assistant Secretary, 12
such withdrawal to take effect not sooner than 30 days after filing the notice. 13
"§ 96A-14. Family and medical leave insurance program. 14
(a) The Division shall establish and administer a family and medical leave insurance 15
program and begin collecting contributions as specified in this Chapter. By January 1, 2027, the 16
Division shall start receiving claims from and paying family and medical leave insurance benefits 17
to covered individuals. 18
(b) The Division shall establish reasonable procedures and forms for filing claims for 19
benefits under this Chapter and shal l specify what supporting documentation is necessary to 20
support a claim for benefits, including any documentation required from a health care provider 21
for proof of a serious health condition. 22
(c) The Division shall notify the employer within five business days of a claim being 23
filed pursuant to this Chapter. 24
(d) The Division shall use information sharing and integration technology to facilitate the 25
disclosure of relevant information or records, so long as an individual consents to the disclosure 26
as required under State law. 27
(e) Information contained in the files and records pertaining to an individual under this 28
Chapter are confidential and not open to public inspection other than to public employees in the 29
performance of their official duties. However, the individual or an authorized representative of 30
an individual may review the records or receive specific information from the records upon the 31
presentation of the individual's signed authorization. 32
(f) The Department of Commerce shall adopt rules as necessary to implement this 33
Chapter. 34
"§ 96A-15. Federal income tax. 35
If the Internal Revenue Service determines that family and medical leave insurance benefits 36
under this Chapter are subject to federal income tax, the Division must advise an individual filing 37
a new claim for family and medical leave insurance benefits, at the time of filing such claim, that 38
the Internal Revenue Service has determined that benefits are subject to federal income tax and 39
that requirements exist pertaining to estimated tax payments. 40
"§ 96A -16. Family and medical leave insurance account fund; establishment and 41
investment. 42
(a) The Paid Family and M edical Leave Fund (Fund) is created in the custody of the 43
Division. Expenditures from the Fund may be used only for the purposes of the family and 44
medical leave insurance benefits program. Only the Assistant Secretary of the Division or the 45
Assistant Secretary's designee may authorize expenditures from the Fund. 46
(b) Whenever, in the judgment of the Division , there shall be in the Fund an amount of 47
funds in excess of that amount deemed by the Division to be sufficient to meet the current 48
expenditures properly payable therefrom, the Division shall have full power to invest, reinvest, 49
manage, contract, sell, or exchange investments acquired with such excess funds in the manner 50
prescribed by North Carolina law. 51
General Assembly Of North Carolina Session 2025
House Bill 499-First Edition Page 9
"§ 96A-17. Reports. 1
Beginning January 1, 2028, the Division shall report to the General Assembly by April 1 of 2
each year on projected and actual program participation by purpose listed in G.S. 96A-2, gender 3
of beneficiary, premium rates, fund balances, outreach efforts, and, for leaves taken under 4
G.S. 96A-2, family members for whom leave was taken to provide care. The reports shall be 5
made publicly available immediately following submission to the General Assembly. 6
"§ 96A-18. Public education. 7
The Division shall conduct a public education campaign to inform workers and employers 8
regarding the availability of family and medical leave insurance benefits. Outreach information 9
shall be available in English, Spanish, French, German, Vietnamese, Chinese, Arabic, Korean, 10
Tagalog, Hindi, Gujarati, Russian, Hmong, and other languages spoken by more than five percent 11
(5%) of the State's population. 12
"§ 96A-19. Sharing technology. 13
The Division is encouraged to use State data collection and technology to the extent possible 14
and to integrate the program with existing State policies. 15
"§ 96A-20. Severability. 16
If any provision of this Chapter or its application to any person or circumstance is held 17
invalid, the remainder of the Chapter or the application of the provision to other persons or 18
circumstances is not affected." 19
SECTION 2. All rules necessary for implementation of this act shall be adopted by 20
October 1, 2025. 21
SECTION 3. Except as otherwise provided, this act is effective when it becomes 22
law. 23