Sen. Mimi Stewart and the Southwest Women’s Law Center are advocating for a new paid family leave bill at the state Capitol. The bill is an overhaul of previous failed proposals, offering paid family and medical leave for workers for up to 12 weeks. The bill has sparked controversy with small business owners due to the potential disruption of business operations and concerns over cost to both workers and employers.

A new provision in the bill requires the Department of Workforce Solutions to issue a study by the start of 2025 on the plan’s fiscal feasibility. This is in response to an impact report on previous similar Senate Bill 11, which raised concerns over the fund’s solvency. Another change allows spouses of military members to participate in the plan.

The bill outlines a range of approved reasons for leave, including childbirth, bereavement, medical care, caring for a sick relative, or dealing with domestic abuse situations. The remuneration during the leave would equate to the state’s minimum wage plus approximately two-thirds of the employee’s regular pay.

The proposed funding system requires quarterly payments from employers and employees into the leave fund through payroll deductions, starting on Jan. 1, 2026. Small businesses with less than five employees are exempt from contributions, but they must still honor their employees’ rights to the paid leave. The initiative would be kickstarted with a $36 million allocation. If the bill is approved and signed into law, workers could start benefitting from the program in 2027.

Business owners expressed their concerns over the bill, referencing recruitment struggles and higher wage demands due to the COVID-19 pandemic. Some even suggested they might have to close or move their operations out of state. Despite the pushback, advocates of the bill are confident in the new legislation’s viability and relevance.