Madison Resources consistently strives to be recognized as a true partner to your staffing firm. Therefore, as part of this commitment, we not only provide timely and accurate information—such as updates on the Vermont Family and Medical Leave Insurance program—but also actively promote efficiency and offer valuable resources to you. By doing so, we aim to support your business in navigating complex employee benefits with ease and confidence.
Introduction to Vermont Family and Medical Leave Insurance
Beginning February 15, 2025, Governor Phil Scott, along with The Hartford—a leading provider of employee benefits and leave management—will start offering the Vermont Family and Medical Leave Insurance (FMLI) program for employers. Specifically, employers with two or more employees will have the opportunity to design plans tailored to the unique needs of their business and workforce, with benefits officially commencing on July 1, 2025. This initiative represents a significant step forward in supporting Vermont’s workforce and their families.
Key Benefits of the FMLI Program
The FMLI program, importantly, offers partial income replacement for workers who need to care for a family member with a serious health condition, 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. It’s worth noting that participation in this program is voluntary, allowing employers and employees to make informed decisions based on their individual circumstances.
Flexibility for Employer
Moreover, the FMLI plans are designed with flexibility in mind and allow employers who opt in to customize a plan that best fits their business and employees. For instance, key features include:
- The option to provide family and medical leave combined or stand-alone family leave insurance
- Contributions that can be fully paid by the employer, shared with employees, or fully paid by employees as a voluntary benefit
- Benefit durations ranging from 6 to 26 weeks per 12-month period
- Wage replacement of 60 to 70%, with additional options available through underwriting review
This level of customization ensures that businesses of various sizes and industries can find a suitable arrangement that balances employee support with financial considerations.
Program Phrases and Availability
Initially, the program’s first phase was implemented for Vermont State employees in July 2023. Subsequently, the final phase will extend FMLI benefits to individual workers without employer coverage, self-employed individuals, and employers with fewer than two employees. Consequently, these groups will be able to purchase benefits in 2025, with coverage officially starting July 1, 2025. This phased rollout demonstrates a thoughtful approach to ensuring the program is accessible to a broad range of workers across Vermont.
Products Offered by The Hartford
The Hartford offers two distinct products to employers: VT Family and Medical Leave Insurance (VT FMLI) and VT Family Leave Insurance (VT FLI). Both products may provide a combined six weeks of paid leave benefits in a 12-month period for the following life events:
VT FMLI Covers
- Bonding 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
- Recovery from childbirth
- Recovery from their own serious health condition
VT FLI Covers:
- Bonding 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
These options provide comprehensive coverage to meet the diverse needs of employees during critical life moments.
How Madison Resources Supports You
Since Vermont’s FMLI program is voluntary, no law requires employers to provide family or medical leave. Thus, businesses may choose whether to add FMLI to their employee benefits package. If you decide to offer paid leave through The Hartford’s program, Madison Resources can readily assist by deducting employee contributions during payroll processing and remitting those funds to you for payment to The Hartford. This service ensures smooth administration and peace of mind for your business.
Seek Professional Guidance
As always, we strongly recommend consulting your attorney, CPA, or industry professional for further guidance on effectively implementing the Vermont Family and Medical Leave Insurance program. Their expertise can help you navigate legal requirements and financial considerations with confidence.
Additional Resources
- VT FMLI site: https://www.thehartford.com/paid-family-medical-leave/vt
- Employer VT FMLI Fact Sheet: https://ewcstatic.thehartford.com/fmli/documents/Plan%20Information%20Flyer%2010-24.pdf
- VT FMLI Employer Page: https://fmli.thehartford.com/vtemployers
- 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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