# Summary of H.R. 3481: Family and Medical Insurance Leave Act
The FAMILY Act creates a new federal paid family and medical leave insurance program administered by the Social Security Administration. The program provides monthly cash benefits to workers who take qualifying leave for reasons including caring for a seriously ill family member, their own serious health condition, bonding with a newborn, or dealing with domestic violence, sexual assault, or stalking. Eligible workers must have earned at least $2,000 in wages during a specified period and can receive up to 60 caregiving days per year, with benefits replacing 50 to 85 percent of average monthly earnings up to a maximum of $4,000 monthly.
The program is funded through new payroll taxes: employees and employers each pay 0.2 percent of wages, while self-employed individuals pay 0.4 percent of net self-employment income. These taxes begin 120 days after enactment. The bill includes protections against employer retaliation, requires employers to restore workers to their positions after leave, and maintains health insurance coverage during leave. Workers can begin filing applications 18 months after the law passes.
The bill also allows states with existing paid leave programs to remain as "legacy states" and receive federal grants to offset their own program costs, rather than having residents participate in the federal program. A separate government trust fund is created to hold and distribute all benefits and administrative costs.
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