House Bill 11 (HB 11) enacts the Paid Family and Medical Leave act and creates the Paid Family and Medical Leave Fund. HB 11 provides for the Paid Family and Medical Leave Program to pay an eligible applicant a percentage of the employee’s wages to allow to bond with a new child, care for a family member, prepare for and adjust to a spouse’s military deployment or to take action to protect the employee or the employee’s family member from certain forms of violence. HB 11 limits the time allowed for paid family and medical leave. HB 11 provides for the administration of the program by the Workforce Solutions Department. HB 11 creates a temporary advisory committee. 
 

 House Bill 11 (HB 11) in SECTION 1 creates the Paid Family and Medical Leave Act (Act) as follows:
SECTION 2 provides definitions as used in the Act.
SECTION 3 creates the Paid Family and Medical Leave Fund (Fund) as follows:
The Fund created in the state treasury shall be administered by the department for the benefit of employees and self-employed individuals who paid into the Fund. 
Money in the Fund shall be:
-invested and income from investment shall be credited to the Fund. 
- appropriated to the department to distribute leave compensation and to cover the costs of administration and outreach for the paid program. 
Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert or be transferred to any other fund. 
To determine an actuarially sound premium rate and a future premium rate-setting mechanism, the department shall contract with a qualified independent actuarial consultant who has the relevant experience to analyze the necessary components.
The secretary shall maintain the solvency of the fund by:
- performing an annual financial analysis;
- setting the premium for the following calendar year, as specified. The department shall provide public notice of any changes to the premium.
- reporting the results of the analysis to the appropriate legislative body.
SECTION 4 addresses applicability, contributions to the fund, remittance of contributions, exemptions and requirements for privately run programs
A. The Act applies to:
1.all public and private employees who are in the state of New Mexico, except those employees who are employed by the United States; 
2.the employers of employees as described above, whether or not the employer is physically located in the state; 
3. self-employed individuals in the state of New Mexico who opt into the program; and 
4. Indian tribes that elect to be covered in the program for their employees. 
Subsections B-D specify employers, employees and self-employed individuals shall be
assessed contributions to the Fund at the rates specified for each calendar quarter, beginning in 2027. 
Subsections E-F provide that contributions shall be remitted at the end of each quarter on a date specified by the secretary.
Subsections G-I provide that an employer may apply for a waiver from the program if that employer provides a paid family and medical leave plan to employees with compensation similar to or greater than required by the Act. 
An employer and employees granted a waiver shall not be required to remit contributions. The employer shall apply and provide supporting documentation to the department for exemption each calendar year. 
An employer and employees granted a waiver shall have the same rights and protections enjoyed by employers and employees covered pursuant to the Act, including the right to appeal a waiver granted or denied to the department. 
An employer granted a waiver shall notify all employees covered by the employer's paid leave program as specified in Subsection I.
J. A paid family and medical leave plan that is privately operated shall not: (1) require an employee to pay more for private coverage than the employee would pay through contribution to the Fund; or (2) impose additional restrictions or conditions on leave or leave compensation beyond those explicitly authorized by state law. 
K. The department shall withdraw approval of a waiver for a privately operated paid leave plan or program that violates the provisions of the Act. An employer whose waiver has been withdrawn pursuant to this subsection may reapply after five years. 
L. Nothing in this section shall be construed to prohibit an employer without a waiver from providing supplemental leave compensation or extended length of leave to employees receiving compensation from the department.
SECTION 5 addresses eligibility, the leave compensation calculation, leave duration and documentation required. 
Beginning January 1, 2028, the department shall provide leave compensation to an eligible applicant who takes leave after the applicant: 
(1) files a claim for leave compensation approved by the department; and (2) contributes to the Fund for at least six months during any employment in the twelve-month period prior to submitting an application. Time an individual previously was covered by a privately operated paid leave plan shall count toward the requirement. 
Starting January 1, 2028, an applicant shall be eligible for a maximum of 12 weeks of family leave in an application year. In calendar years 2028-2029, the maximum medical leave, safe leave or qualifying exigency leave compensation shall be nine weeks per application year until the subsequent annual financial analysis determines that the fund is solvent, at which point the maximum leave compensation for the following calendar year and thereafter shall be increased to 12 weeks. In no event shall an applicant be eligible for more than 12 weeks of leave compensation in an application year. 
E. An applicant is not required by the Act to use any leave consecutively. 
F. An applicant shall be ineligible to receive leave compensation if the applicant has:
- filed a fraudulent claim
- is receiving unemployment insurance benefits, 
- fails to use the leave as described in the applicant’s application, 
- is receiving temporary total disability benefits from a workers’ compensation claim for the same period,
- is earning wages for the same period
G-H. The department shall issue leave compensation from the fund to an eligible applicant whose claim has been approved based on the calculations and criteria specified in these subsections.
I. When an applicant submits a claim for leave compensation, the department shall verify eligibility based on wages or net income and weeks and hours worked in 12 months.
J. The department shall notify the employer and applicant in writing within 20 business days of application if the application is approved or denied or if further information is required.
K. Every individual filing a new claim for leave compensation shall be advised that leave compensation may be subject to federal state and income taxes and additional tax requirements. 
L. Amounts deducted and withheld from leave compensation shall remain in the Fund until transferred to the federal internal revenue service. 
M. The department shall follow all state and federal laws, rules and procedures pertaining to the deducting and withholding of income tax. 
SECTION 6 addresses documentation for claims for leave and specifies confidentiality. The department shall require an applicant who seeks family leave compensation to provide:   
- evidence of the birth or adoption of a child or placement of a foster child with the applicant. 
- verification by a health care provider that the applicant or a family member has a serious health condition that supports the claim and shall include an expected time line for the applicant's return to work. 
- a copy of the military member's active duty orders or other documentation issued by the military that indicates that the military member is on covered active duty and the dates of the military member's covered active duty service. 
- a police report, court-issued document or signed statement from a victim services organization, a clergy member, an attorney, an advocate, the applicant, a family member of the applicant or other person that supports the applicant's claim. 
E. Information contained in an applicant's files and records pertaining to the Act are confidential and not open to public inspection, other than to department employees or the employees of an approved privately operated paid leave program in the performance of their official duties. However, the applicant or an authorized representative may review the records or receive specific information from the records upon the presentation of the applicant's signed authorization.
F. Employee information acquired by a private employer pursuant to the Act shall be kept confidential by the employer; provided that confidential records may be used by department employees or the employees of an approved privately operated paid leave program in the performance of their duties. 
SECTION 7 specifies employee notice to employer and prohibits reduction of other leave.
A. Beginning January 1, 2028, an employer shall allow an employee to take up to a combined total of 12 weeks of family leave, medical leave, safe leave and qualifying exigency leave during an application year. An employee or self-employed individual is not required to use any leave consecutively. 
B. An employee shall: 
(1) make a reasonable effort to schedule leave so as not to unduly disrupt the operations of the employer;
(2) provide the employer with prior notice of the schedule on which the employee will be taking leave 20 days before use or as soon as practicable; and
(3) provide the employer with documentation of the approved leave compensation request. 
C. The employer has the right to appeal a determination to the department within 15 calendar days after receipt of documentation of the approved leave compensation request. 
D. Leave taken pursuant to the Act shall not result in a reduction of the total amount of leave to which an employee is otherwise entitled pursuant to contract, policy, collective bargaining agreement or other law or rule in excess of the amount of leave actually taken pursuant to the Act; provided that an employer subject to the federal Family and Medical Leave Act of 1993 may require an employee who takes leave and receives leave compensation pursuant to the Paid Family and Medical Leave Act to take leave concurrently. An employer shall not require an employee to exhaust any other leave entitlement prior to granting leave pursuant to the Act. 
E. Nothing in this section shall be construed to entitle an employee to more leave than required pursuant to the Act. 
F. An employer shall post and keep posted in a conspicuous place upon its premises a notice that informs employees of the right to take leave and summarizes the major provisions of the Act. 
SECTION 8 addresses an employee’s return to employment.
A. A self-employed individual shall notify the department within 10 business days return to work. 
B. Upon an employee's return after leave or upon the completion of an intermittent leave claim, an employer shall notify the department within 10 business days that the employee has returned to work. 
C. An employer that has employed an employee for 180 days or more prior to the commencement of an employee's leave shall: 
(1) restore the employee to the position held by the employee when the leave was commenced; or 
(2) place the employee in a position for which employee conditions of employment are equivalent to or greater than those provided in the position from which the employee took leave. 
D. Nothing in this section shall be construed to entitle a restored employee to: 
(1) the accrual of seniority or employment benefits during the period the employee is using leave; or 
(2) the right to any benefit or position of employment other than the right the employee would have been entitled to had the employee not taken the leave. 
E. Any yearly certification or training that an employer requires as a condition of employment may remain in place and applicable to any employee taking leave; provided that nothing in this subsection shall supersede another provision of law or a collective bargaining agreement that governs an employee's return to work after leave. 
F. Nothing in this section shall prohibit an employer from requiring an employee who uses leave to report periodically to the employer on the status and intention of the employee to return to work. 
G. An employer shall pay its share of health insurance premiums and maintain an employee's health coverage while the employee is on leave pursuant to the Act under terms that the employee would have received if the employee had not taken leave. The employee on leave shall pay the same share of premium payments as the employee would have paid if the employee were not on leave. 
SECTION 9 prohibits interference or retaliation. 
A. It is unlawful for an employer or any other person to interfere with or deny the exercise of any right protected pursuant to the Act. 
B. An employer shall provide to the employee documents required to apply for leave in a timely manner. 
C. An employer, employee organization or other person shall not take retaliatory personnel action or otherwise discriminate against a person because the person exercised rights protected pursuant to the Act.
D. It is unlawful for an employer's absence policy to count leave taken pursuant to the Act as an absence that may lead to or result in discipline, discharge, demotion, suspension or any other adverse action.
E. The protections provided in this section shall apply to any person who reasonably but mistakenly alleges violations of the Act. 
F. An employer that is found by a hearing officer or court of competent jurisdiction to have discharged a worker in violation of this section shall rehire that employee; provided that the worker agrees to be rehired. 
SECTION 10 addresses appeal procedures, administrative actions and departmental disciplinary powers.
A. An applicant may appeal an adverse determination of an application to the department in writing. The secretary may hold a hearing, develop a record of the proceedings and rule on the appeal.
B. An aggrieved party or the department may bring an administrative action for an alleged violation of the Act under a public or privately run leave program, as specified in this subsection.
C. A party may appeal a final decision made by the department pursuant to the provisions of this section to the district court. 
D. The department may appear in its own name in district court in actions for injunctive relief to prevent any person or entity from violating the provisions of the Act.
SECTION 11 Preemption prohibited.
A. A city, county, home rule municipality or other political subdivision of the state shall not adopt or continue in effect any ordinance, rule, regulation, resolution or statute that establishes a program of rights and benefits as set out in the Act, excluding a paid sick leave or paid time off ordinance, policy or resolution. 
B. Subject to the requirements of the Act, the provisions of Subsection A of this section shall not prevent a city, county, home rule municipality or other political subdivision of the state from establishing any leave policies for its employees. 
SECTION 12. provides that the Act shall not diminish any collective bargaining agreement.
SECTION 13 instructs that the department shall adopt rules to implement the Act and directs that state agencies and departments shall cooperate with the secretary to timely and efficiently provide the information and services necessary to carry out the provisions of the Act. 
SECTION 14 creates a temporary advisory committee.
The Paid Family and Medical Leave Implementation Advisory Committee (Committee) is created in the Workforce Solutions Department (NMDWS). The Committee consists of eight members appointed by the secretary of workforce solutions, to include equal representatives of employers and employees. The Committee shall provide input for the development, implementation and promulgation of rules and educational materials to carry out the provisions of the Act. The secretary shall consult with the Committee at least quarterly. Members of the Committee are not entitled to per diem and mileage expenses. The NMDWS shall provide staff for the committee. The Committee shall function from the date of its appointment, which shall be no later than October 1, 2025, until January 1, 2027. 
SECTION 15 provides a temporary provision for repayment of an appropriation to the Fund.
Beginning January 1, 2029, $6,000,000 shall be transferred from the Fund at the end of each fiscal year to the General Fund until the total transfers pursuant to this section equal the total amount of an appropriation made to the NMDWS for costs associated with the implementation of the Act contingent on the passage of legislation in the first session of the 57th legislature appropriating funds for the purposes of the Act.

 

 CS/HB 11 is amended by the Tax, Business and Transportation Committee (STBTC ) as follows: 
SECTION 2 in Definitions as used in the Welcome Child and Family Wellness Leave Act, Subsection G, the definition of employee is amended to read:
G. "employee" means a person working within the state who performs a service for wages or other remuneration under a contract of hire, written or oral, express or implied, and includes a person employed by the state or a political subdivision of the state. "Employee" does not mean an employee as defined in the federal Railroad Unemployment Insurance Act;
SECTION 4 in Applicability, Subsection C is amended to change the beginning date from January 1, 2027 to July 1, 2027.
SECTION 7 in Welcome Child Benefit is amended as follows:
Subsection A has inserted “ self-employed” as an eligible applicant to the provisions of the act.  
Subsection C is amended to change a reference, as the section has been relettered, and deletes “one of” a reference to a refund to be paid to a child’s parents each month.
Subsection D is inserted as follows and the section is relettered.
D. If more than one parent of a child applies to receive the welcome child refund, the welcome child refund may be divided evenly between the parents. No child's family shall be entitled to receive more than $3,000 each month for the three months immediately following the birth or adoption of the child. 

 House Bill 11 is substituted by the House Commerce and Economic Development Committee:
To change the name from the Paid Family and Medical Leave Act to the Welcome Child and Family Wellness Leave Act throughout this bill. HB 11/CS as follows: 
SECTION 1.SHORT TITLE.--This act may be cited as the "Welcome Child and Family Wellness Leave Act” (Act). This section is changed throughout to remove “Paid Family and Medical Leave Act” to “Welcome Child and Family Wellness Leave Act”.
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Welcome Child and Family Wellness Leave Act:
adds Subsection C:
C. "bereavement leave" means paid leave granted following the death of an adopted, biological or foster child under eighteen years of age;
HB 11 Subsection J defining “family leave” is deleted from HB 11/CS.
Subsections L and M inserted in HB 11/CS:
L. "family wellness leave" means bereavement leave, foster leave, medical leave, qualifying exigency leave or safe leave; 
M. "foster leave" means paid leave granted to allow an applicant to bond with a foster child within twelve months of the placement of a foster child with the applicant;
Subsection X inserted in HB 11/CS:
X. "welcome child benefit" means: (1) a refund for which one eligible applicant who is the parent of a biological or adopted child may apply and receive for the three months immediately after the birth or adoption of a child; and (2) up to twelve weeks of leave that is granted to allow the applicant to bond with a biological or adopted child within twelve months of the birth or adoption of a child.
SECTION 3. FAMILY WELLNESS LEAVE FUND-- CREATION.—
Family Wellness Leave Fund added throughout this section.
A. The Family wellness Leave Fund (Fund) is created in the state treasury and shall be administered by the department. The fund shall be held for the benefit of the employees and self-employed individuals who paid into the fund and consists of all revenue, including any fees collected pursuant to the Act in accordance with department rules. Money in the fund shall be invested by the state investment officer and income from investment shall be credited to the Fund.
B. Money in the Family Wellness Leave Fund is appropriated to the department to distribute family wellness leave benefits pursuant to the Act and to administer that Act.
SECTION 4. APPLICABILITY--CONTRIBUTIONS TO THE FAMILY WELLNESS LEAVE FUND--REMITTANCE OF CONTRIBUTIONS-- EXEMPTION FOR CERTAIN LEAVE PLANS OR PROGRAMS--REQUIREMENTS FOR WAIVER.
Subsection B decreases the contribution from an employee’s wage from 1/2 percent to two-tenths percent beginning July 1, 2027. Beginning January 1, 2030 and for each calendar quarter thereafter, there is assessed against each employee an assessment on the employee's wages, up to the earnings cap established by the federal social security administration program, at fifty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Welcome Child and Family Wellness Leave Act.
Subsection C decreases the employer contribution from four-tenths percent to fifteen-hundredths percent beginning January 1, 2027. Beginning January 1, 2030 and for each calendar year thereafter, there is assessed against each employer with five or more employees an amount equal to each participating employee's wages, up to the earnings cap established by the federal social security administration program, at forty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Welcome Child and Family Wellness Leave Act. An employer shall not recover, or seek to recover, any amounts assessed against employers pursuant to this subsection from the employer's employees.
Subsection D decreases the self-employed individual’s contribution to two-tenths percent from one-half percent beginning July 1, 2027.Beginning January 1, 2030, each calendar quarter thereafter, there is assessed against each self-employed individual as described in Paragraph (3) of Subsection A of this section an assessment on the individual's net income as designated by the self-employed individual at fifty-five percent of the premium set by the secretary pursuant to Subsection E of Section 3 of the Welcome Child and Family Wellness Leave Act. 
SECTION 5. ELIGIBILITY--FAMILY WELLNESS LEAVE--LEAVE CALCULATION--LEAVE DURATION--DOCUMENTATION REQUIRED--NOTICE OF DETERMINATION.--
C. Beginning January 1, 2028, an applicant shall be eligible for a maximum of six weeks of family wellness leave in an application year. HB 11 originally allowed a maximum of 12 weeks of leave. Then dropped the maximum leave down to 9 weeks in later years. 
HB 11/CS Section 6 replaces HB 11 Section 6 as follows:
SECTION 6. WELCOME CHILD FUND—CREATION.--
A. The Welcome Child Fund (Child Fund) is created in the state treasury and shall be administered by the department. The Child Fund shall be held for the benefit of eligible employees and self-employed individuals who become new parents. Money in the Child Fund shall be invested by the state investment officer and income from the investment shall be credited to the fund. 
B. Money in the Child Fund is appropriated to the department to distribute welcome child benefits pursuant to the Act. Money shall be disbursed from the Child Fund in the usual way. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert or be transferred to any other fund.
SECTION 7. WELCOME CHILD BENEFIT-- ELIGIBILITY--LEAVE DURATION— DOCUMENTATION REQUIRED. 
A. Beginning January 1, 2028, the department shall provide the welcome child benefit, in accordance with the provisions of the Act and department rules to an eligible applicant who has been employed for at least six months in the twelve-month period prior to submitting an application and has filed a claim that has been approved by the department. 
B. The department shall require an applicant who seeks the welcome child benefit to provide, in accordance with department rules, documentation of the child's birth or adoption. 
C. The welcome child benefit consists of: (1) except as provided in Subsection E of this section, one $3,000 welcome child refund, to be paid to one of the child's parents each month for the three months immediately following the birth or adoption of the child; and (2) up to twelve weeks of welcome child leave granted to each parent, which shall be taken within one year of the birth or adoption of the child. 
D. An applicant is not required by the Act to use any leave consecutively. Under no circumstance shall an applicant be eligible for more than a total of twelve weeks of welcome child leave in an application year. 
E. On January 1, 2030 and each January 1 thereafter, the amount of welcome child refund shall be adjusted to account for inflation.. 
F. For purposes of this section, "consumer price index" means the consumer price index or its successor index for all urban consumers for all items, published by the bureau of labor statistics of the United States department of labor or its successor agency.
SECTION 8. CLAIMS FOR FAMILY WELLNESS LEAVE—DOCUMENTATION —CONFIDENTIALITY. The department shall require an applicant who seeks, in accordance with department rules:
(1) bereavement leave to provide documentation of the child's death; 
(2) foster leave to provide documentation of the foster child's placement; 
(3) medical leave to provide verification by a health care provider that the applicant or a family member has a serious health condition that supports the applicant's claim for medical leave; provided that any verification by a health care provider shall include an expected time line for the applicant's return to work; 
(4) qualifying exigency leave to provide a copy of the military member's active duty orders or other documentation issued by the military that indicates that the military member is on covered active duty or called to covered active duty status, or that confirms the military member's death, and the dates of the military member's covered active duty service; and 
(5) safe leave to provide a police report, court-issued document or signed statement from a victim services organization, a clergy member, an attorney, an advocate, the applicant, a family member of the applicant or other person that supports the applicant's claim for safe leave.
Sections 9, 10, 11, 12, 13, 14, 15 no changes.