Senate committee hears bill to create Montana Family and Medical Leave Insurance; questions on cost, timing and employer impact

Senate Business and Labor Committee members heard testimony on Senate Bill 325, the “Montana Family and Medical Leave Insurance Act,” which would create a state‑run paid family and medical leave program funded by employer and employee contributions split equally and limited by a 1 percent cap on wages.

Supporters said the program would provide wage replacement for qualifying events — such as a serious health condition, care of a new child, or care for certain family members — and would mirror eligibility and wage calculations used in Montana’s unemployment insurance system. Proponents also emphasized a higher benefit share for low‑wage workers, an inclusive definition of family, and reduced contribution rates for very small employers.

The bill would let the Department of Labor and Industry administer a new Family Medical Leave Insurance Fund. Under Senate Bill 325, an eligible worker could take up to 480 hours (12 weeks) of paid leave in a benefit year; weekly benefit amounts would scale with…