Sen. Mimi Stewart, D- Albuquerque, and Tracy McDaniel, policy advocate with the Southwest Women’s Law Center, have voiced their support for a new paid family leave bill during a news conference at the state Capitol. Advocates are hopeful that the overhauled bill, which promises paid family and medical leave for workers, will gain sufficient support this legislative session.

Sen. Mimi Stewart noted that lawmakers aim to make this a stronger, better bill, hoping to calm the concerns expressed by business owners over the last proposal. Previous plans for a similar Senate proposal were met with opposition from business owners over worries that allowing workers extended paid leave would disrupt business operations.

The updated bill requires both workers and employers to contribute to a fund that would cover part of a worker’s wages during their 12-week leave period. Anticipating concerns about the fund’s solvency, the Department of Workforce Solutions is now required to issue a study on the plan’s fiscal feasibility by 2025.

The terms of leave include reasons such as childbirth, bereavement, medical care, care for ailing relatives, or situations involving domestic abuse. Workers would earn the state’s minimum wage during their leave, plus about two-thirds of their regular pay.

Quarterly payroll deductions would fund the initiative, with employers and employees contributing $272 and $218 per year respectively. Employers with fewer than five employees are exempt from contributing but employees may, retaining their rights to paid leave. The fund launches with a $36 million allocation. Upon approval, contributions would begin in 2026 and workers could benefit from 2027.

Business owners have previously expressed concerns about the impact on staffing and wage costs, with some threatening to close or relocate if the proposal passed. Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce, voiced concerns that the legislation could harm small employers. Rob Black, CEO of the New Mexico Chamber of Commerce, however, welcomed the inclusion of the actuary study on the plan.