Tennessee House Bill HB0673

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23
• Failed: 3/21/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 21; Title 10, Chapter 7, Part 5 and Title 50, relative to insurance benefits.

Impact

The enactment of HB0673 will significantly affect existing workplace policies and laws regarding employee leave in Tennessee. It establishes the right for employees to take paid leave for several qualifying reasons under the act, which may require many employers to revisit their current leave policies. The law mandates the maintenance of healthcare benefits during the leave period and mandates job protection by requiring that employees be reinstated to their previous or an equivalent position after returning from leave. Employers will also be responsible for collecting insurance premiums from employees, which will fund the newly established family and medical leave insurance program.

Summary

House Bill 0673, also known as the Tennessee Family Insurance Act, establishes a framework for family and medical leave insurance benefits within the state of Tennessee. This act aims to provide financial support to workers who need to take time off for family or medical reasons, including the care of new children or family members with serious health conditions. Starting January 1, 2026, eligible individuals can receive benefits for up to twelve weeks per application year, with payments set at eighty percent of their average weekly wage or up to a maximum of $1,000 per week, whichever is lower. There is a provision for annual adjustments to ensure that the benefit remains aligned with the state average weekly wage.

Contention

Notably, there are concerns regarding the implementation of the insurance premium system, which places financial responsibility on employees starting January 1, 2025, as well as the fact that the program must be self-sustaining and not rely on general fund appropriations. Critics may argue that this raises issues around affordability for employees. Additionally, there are apprehensions among business groups about managing this new obligation, especially for smaller employers who may find the administrative and financial burdens challenging. While the intent is to protect workers' rights, discussions around fiscal responsibility and impact on business operations will likely emerge as key points of contention.