Rep. Budd files paid family leave insurance bill in North Carolina House

A new bill filed by State Rep. Laura Budd in the North Carolina House seeks to create a framework for paid family and medical leave insurance benefits, according to the North Carolina State House.

The bill, filed as HB 499 on March 24 during the 2025 regular session, was formally listed with the short title: ‘NC Paid Family Leave Insurance Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill establishes the North Carolina Paid Family Leave Insurance Act, creating a framework for family and medical leave insurance benefits starting January 1, 2026. It defines eligibility for individuals to receive benefits when they are absent from work due to events such as caring for a new child, a family member with a serious health condition, or handling emergencies related to a family member’s military service. Benefits duration varies by situation but can reach up to 26 weeks annually. The weekly benefit amount is based on an individual’s average wage, with a maximum set at the state average weekly wage. Employers are required to contribute to the Paid Family and Medical Leave Fund to finance the program. The Act prohibits retaliatory actions by employers against employees exercising their rights under this legislation and mandates that employers provide relevant information to employees. The program’s implementation includes procedures for claims, public education campaigns, and annual reporting to the General Assembly on program metrics. The rules for enacting this bill must be in place by October 1, 2025.

Of the four sponsors of this bill, Bryan Cohn proposed the most bills (12) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Budd graduated from Ohio University in 1999 with a BA and again in 2002 from Wake Forest University School of Law with a JD.

Budd, a Democrat, was elected to the North Carolina State House in 2023 to represent the state’s 103rd House district, replacing previous state representative Rachel Hunt.