At Madison Resources, it is our hope that we are perceived as a true partner to your staffing firm. To that end, we are always looking to assist you in providing necessary information, to promote accuracy and efficiencies, and make helpful resources available to you.
Governor Phil Scott and The Hartford, a leading provider of employee benefits and leave management, will begin offering the Vermont Family and Medical Leave Insurance (FMLI) program for employers on February 15, 2025. Employers with two or more employees will have the opportunity to design a plan to fit the needs of their employees and business, with benefits beginning on July 1, 2025.
The FMLI benefits provide partial income replacement for workers who need to take care of a family member with a serious health condition, care for a military service member’s serious injury or illness, or address certain needs related to a family member’s covered active military duty or call to active duty. This program is voluntary.
What does this mean for you?
The FMLI plans are flexible, which allow employers who opt in to design a plan that best meets the needs of their business and employees. Some key features include:
- Option to provide family and medical leave combined or stand-alone family leave insurance;
- Contributions can be fully paid by the employer, split between the employer and employees, or fully paid for by the employees as a voluntary benefit;
- Benefit duration options of 6 to 26 weeks per 12-month period; and Sixty to 70% wage replacement, with additional options available with underwriting review.
The first phase of this program was implemented for Vermont State employees in July 2023. In the final phase of the program, FMLI benefits will be made available for individual workers in the state of Vermont who do not have access to them through their employer, self-employed individuals, and employers with fewer than two
employees, to purchase in 2025 with benefits beginning on July 1, 2025.
The Hartford offers two products to employers: VT Family and Medical Leave Insurance (VT FMLI) and VT Family Leave Insurance (VT FLI). Both VT FMLI and VT FLI may provide a combined six weeks of paid leave benefits in a 12-month period for the following life events:
VT FMLI:
- Bond with a new child (newborn, adoption, and/or foster placement)
- Care for a family member with a serious health condition
- Military exigency
- Care for a military service member
- Recover from childbirth
- Recover from their own serious health condition
VT FLI:
- Bond with a new child (newborn, adoption, and/or foster placement)
- Care for a family member with a serious health condition
- Military exigency
- Care for a military service member
How can we help?
Vermont’s FMLI program is non-mandatory, that is, no law requires employers to provide family or medical leave to their employees. Vermont’s business can choose whether to add FMLI to their slate of employee benefits. If you decide to offer paid leave through The Hartford’s insurance program and are funding it will either a full or partial employee deduction, Madison Resources, as your payroll service provider, can deduct employee contributions from the enrolled employee’s paychecks during payroll processing and remit those funds back to you for further remittance to The Hartford.
As always, we recommend speaking with your attorney, CPA, or industry professional for further guidance.
For more information:
To access the VT FMLI site:
https://www.thehartford.com/paid-family-medical-leave/vt
To access the Employer VT FMLI Fact Sheet:
https://ewcstatic.thehartford.com/fmli/documents/Plan%20Information%20Flyer%2010-24.pdf
To access the VT FMLI Employer Page:
https://fmli.thehartford.com/vtemployers
To access the VT FMLI FAQ’s:
https://ewcstatic.thehartford.com/fmli/documents/FAQ%20Flyer.pdf
Contact Information:
Office of Governor Phil Scott
109 State Street, Pavilion
Montpelier, VT 05609
Phone: (802) 828-3333 (TTY: 800 649-6825)
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