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Montana creates a state-managed family and medical leave insurance program funded by employer and employee payroll contributions

Original title: Creating family and medical leave act

Last action · May 23, 2025: (S) Died in ProcessSponsor: Derek Harvey

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Montana establishes the Family and Medical Leave Insurance Act, creating a state financed by split employer-employee payroll contributions capped at 1% of wages to provide paid leave benefits for eligible workers. The program offers up to 480 hours of weekly benefits for serious health conditions, family care, bonding with a new child, or qualifying military exigency leave, contingent upon fund solvency. Covered employers must maintain job protections, continue health and pension benefits during leave, and remit contributions quarterly.

Why it matters

Workers gain access to up to 480 hours of paid leave for medical and family reasons with job restoration guarantees, while employers face new quarterly contribution payroll duties and administrative compliance mandates scaled by business size.

Background
  • Derek Harvey is a Democratic member of the Montana Senate representing District 37, who introduced SB 325 during the 2025 legislative session. context
  • State-administered paid family and medical leave programs have been enacted in several other states to provide wage replacement and job security for workers needing time off for health or family care reasons. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

eligible employees

Eligible workers gain access to paid leave benefits, job protection, and health insurance continuation during qualifying leaves while contributing a share of payroll deductions.

Directly affected

covered employers

Covered employers must remit quarterly payroll contributions, maintain employee health benefits during leave, and restore returning workers to equivalent positions.

Directly affected

self-employed individuals

Self-employed individuals may elect coverage by paying 100% of contributions and agreeing to minimum participation terms.

Key Facts

  • Establishes the Montana Family and Medical Leave Insurance Act as a new enterprise fund kept separate from other public money.
  • Sets total payroll contributions split equally between employers and employees, capped at a maximum of 1% of an eligible employee's monthly wages.
  • Scales contribution sharing based on business size: employers with 15 or more employees remit the full employer share; those with 10 to 14 remit employee share plus 75% of employer share; those with fewer than 10 remit employee share plus 50% of employer share.
  • Caps weekly benefits at $1,000 or the average weekly wage, whichever is greater, with a maximum of 480 hours of benefits per benefit year.
Show all 11 facts
  • Requires covered employers to restore workers returning from leave to their prior position or an equivalent position with equal seniority, status, and benefits.
  • Mandates that employers continue health and pension benefit contributions for employees taking leave, provided the employee continues paying their required share.
  • Permits self-employed individuals and tribal governments to elect program coverage under specific enrollment and minimum duration rules.
  • Prohibits benefit payouts from starting until 30 days after the commissioner declares the insurance fund solvent.
  • Imposes civil penalties and fines of at least $500 on employers who fail to reinstate workers, continue benefits, or interfere with leave rights.
  • Amends state parental leave policies for state employees and updates theft statutes regarding fraudulent procurement of benefits.
  • Sets the general effective date of the act as July 1, 2026, with Section 5 taking effect January 1, 2027.

Frequently Asked Questions

How much can a worker receive in weekly benefits?
Weekly benefits are calculated based on base wages or earnings, providing 1.92% of base wages for workers earning up to 50% of the average annual wage, plus 0.96% for earnings exceeding that threshold, up to a maximum of $1,000 or the average weekly wage.
Are employers required to hold a worker's job while they are on leave?
Yes. Covered employers must restore a covered individual to the position they held immediately prior to taking leave, or to an equivalent position with equivalent seniority, status, pay, and benefits.
Can self-employed individuals participate in the program?
Yes. Self-employed individuals may elect coverage during designated open enrollment periods, committing to an initial coverage period of at least 3 years and paying 100% of the combined employer and employee contribution rates.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died in committee.

Procedural history

21 actions
  1. May 23, 2025Senate
    (S) Died in Process
  2. Apr 7, 2025Senate
    (S) Missed Deadline for Revenue Bill Transmittal
  3. Feb 26, 2025Senate
    (S) Fiscal Note Printed
  4. Feb 25, 2025Senate
    (S) Fiscal Note Unsigned
  5. Feb 24, 2025Senate
    (S) Fiscal Note Received
  6. Feb 24, 2025SenateCommittee
    (S) Tabled in Committee
Show 15 earlier actions
  1. Feb 18, 2025Senate
    (S) Hearing
  2. Feb 14, 2025SenateCommittee
    (S) Referred to Committee
  3. Feb 14, 2025Senate
    (S) 1st Reading
  4. Feb 14, 2025Senate
    (S) Fiscal Note Requested
  5. Feb 13, 2025SenateIntroduced
    (S) Introduced
  6. Feb 12, 2025House
    (LC) Draft Delivered to Requester
  7. Feb 12, 2025House
    (LC) Draft Ready for Delivery
  8. Feb 11, 2025House
    (LC) Draft in Assembly
  9. Feb 11, 2025House
    (LC) Draft in Final Drafter Review
  10. Feb 10, 2025House
    (LC) Draft in Input/Proofing
  11. Feb 4, 2025House
    (LC) Draft in Edit
  12. Jan 30, 2025House
    (LC) Draft in Legal Review
  13. Jan 24, 2025House
    (LC) Drafter Assigned
  14. Jan 24, 2025House
    (LC) Draft in Legal Review
  15. Nov 22, 2024House
    (LC) Drafter Assigned

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Creation of State-Managed Social Insurance Fund

The measure introduces a novel statewide mandatory contribution fund for family and medical leave, integrating private employment with state labor oversight.

Connected Entities

Department of Labor and Industry, Family and Medical Leave Act of 1993, Derek Harvey
OrganizationDepartment of Labor and Industry“Administers the family and medical leave insurance fund, determines contribution”Map →
otherFamily and Medical Leave Act of 1993“Federal law referenced for coordination of benefits and eligibility definitions.”Map →
PersonDerek Harvey“Democrat, District 37, introduced SB 325.”Map →

Sources

Open source document

bills.legmt.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz50
    Current news / social attention level

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