Section 1 Short title
This Act may be cited as the “Expanding Small Employer Pooling Options for Paid Family Leave Act of 2021”.
Expanding Small Employer Pooling Options for Paid Family Leave Act of 2021
A BILL
To expand small employer pooling options to provide paid family and medical leave.
Sec. 2 Expand small employer pooling options for paid family and medical leave
Amendment to Employee Retirement Income Security Act of 1974—
In general— Section 3(40)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(40)(A)) is amended by inserting “, which, for the purposes of this paragraph, may include paid family and medical leave benefits,” after “paragraph (1)”.
Effective date— The amendment made by paragraph (1) shall take effect on the date that is 90 days after the date of enactment of this Act.
Regulations— The Secretary of Labor shall, in coordination with the issuance of regulations by the Secretary of the Treasury pursuant to subsection (b)(3), issue regulations to implement and ensure compliance with the amendment made by paragraph (1) to ensure consistency and parity in the treatment of paid family medical leave benefits across Federal agencies.
Amendment to Internal Revenue Code of 1986—
In general— Section 501(c)(9) of the Internal Revenue Code of 1986 is amended by inserting “disability, paid family and medical leave,” after “life, sick, accident,”.
Effective date— The amendment made by paragraph (1) shall apply after the date that is 90 days after the date of enactment of this Act, in taxable years ending after such date.
Regulations— The Secretary of the Treasury shall, in coordination with the issuance of regulations by the Secretary of Labor pursuant to subsection (a)(3), issue regulations to implement and ensure compliance with the amendment made by paragraph (1) to ensure consistency and parity in the treatment of paid family medical leave benefits across Federal agencies.
Report— Not later than 120 days after the date of enactment of this Act, the Secretary of Labor and the Secretary of the Treasury shall jointly submit a report to the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives with recommendations describing—
statutory or regulatory changes needed to facilitate multi-employer and small business pooling and cost-sharing, such as through multiple employer welfare arrangements, for the purpose of providing paid family and medical leave benefits, including through the use of short-term disability insurance, to the employees of two or more employers; and
statutory or regulatory changes necessary to allow employers to implement the actions described in paragraph (1) through a tax exempt trust, such as a voluntary employee benefits association, or other mechanism.