Vance wants child birth added to FMLA to stop premium clawback

(The Center Square) – Parents who chose not to return to work after the birth of a child could be spared having to repay health care premiums based on new federal legislation planned.

U.S. Sen. J.D. Vance, R-Ohio, wants to stop employers from reclaiming premiums paid when an employer is out under the Family and Medical Leave Act if they decide to leave the job and be a stay-at-home parent.

He introduced legislation that would also require employers to continue health premium contributions during 12-week FMLA leave.

“Our laws should not penalize new parents who choose to stay home to care for their newborn babies,” Vance said. “We should celebrate and promote young families, not punish them. This legislation would relieve a serious financial burden for working families all over America and steer Washington in a more pro-family direction.”

According to a 2021 report from the Mayo Clinic, more than 50% of women return to work after maternity leave, and most feel guilty about the return.

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Employers subject to FMLA can claw back health care premiums paid for employees who don’t return to work from family leave. The FMLA shields workers from these clawbacks in the event of serious health conditions but not in the event of childbirth.

Employers can deduct the money from unpaid wages and vacation pay for profit-sharing accounts.

Co-sponsor Sen. Mario Rubio, R-Florida, says the legislation would allow families to make better decisions for their children.

“The Fairness for Stay-At-Home Parents Act supports mothers’ and parents’ invaluable role in raising the next generation,” Rubio said. “This legislation stops employers from imposing harsh financial penalties if a parent decides not to return to work after unpaid leave, and it empowers families to make choices that prioritize the well-being of their children.”

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