Vermont Governor Phill Scott announced that the state's voluntary Family and Medical Leave Insurance (FMLI) program was opened to employers with two or more employees on February 15, 2024. Benefits will be available to participating employees starting July 1, 2024. This program is provided exclusively through The Hartford.

Background

On December 6, 2022, Governor Scott announced that the state entered into an agreement with The Hartford to provide a voluntary state FMLI program similar to that implemented for New Hampshire in 2019.

Employers have the option of purchasing both family and medical leave insurance or stand-alone family leave insurance with benefit duration options of six to 26 weeks per 12-month period.

The FMLI program offers partial income replacement of 60% to 70% for workers to (1) take care of a family member with a serious health condition; (2) bond with a new child; (3) tend to their own serious health condition; or (4) take care of a family member in the military that has a serious injury or illness or any qualifying exigency arising out of the family member being on covered active military duty.

FMLI benefits are phased in as follows:

• Phase I: Effective July 1, 2023, Vermont state employees
• Phase II: Effective July 1, 2024, employees of Vermont employers with two or more employees
• Phase III. Effective July 1, 2025, individuals who work for Vermont employers that do not offer FMLI, self-employed Vermonters and Vermont employers with one employee

Ernst & Young LLP insights

Vermont employers should work with their insurance brokers to determine if the state's voluntary program meets their cost and employee benefit objectives.