North Carolina HB 499: NC Paid Family Leave Insurance Act.

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 group 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 an 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
docto