Employees who need to bond with a new baby or take care of a severely ill relative may find it difficult to meet both their demands as a caregiver and their demands of the workplace. Paid family leave is an option that many policy makers are promoting to help those employees who find themselves squeezed between competing needs.
As of early 2008, three states have enacted paid family leave programs. Though often criticized by business advocates, the plans have gotten the support of unions, such as the AFL-CIO.
California
California was the first state to enact a comprehensive paid family leave program in 2004. In California, workers who participate in the State Disability Insurance (SDI) Program are entitled to a maximum of six weeks of partial pay each year while taking time off from work to: bond with a newborn baby, adopted or foster child, or, care for a seriously ill parent, child, spouse or registered domestic partner. Most workers will receive approximately 55% of their pre-taxed weekly wage, up to a maximum of $882, while on leave.
The California program is 100 percent employee-funded. A minimum wage earner will pay an additional $11.23 a year into SDI, while the estimated average additional annual cost is $46.00 per worker.
Washington State
Washington was the second state to provide paid family leave. The law was passed in 2007, and beginning in October 2009 parents of newborn and newly adopted children will be able to take up to five weeks off from work with a benefit of $250 per week, pro-rated for part-time workers. All employees would be eligible to collect benefits after 680 hours of work. Workers in companies with more than 25 employees who had been with their employers for at least a year and 1250 hours would also have job protection for the five weeks of benefits and a 1 week wait period.
Other types of family and medical leave, such as caring for a seriously ill family member or recuperate from a serious health conditions, are not covered.
New Jersey
New Jersey enacted a family leave law in 2008, which allows workers to spend up to six weeks bonding with their new babies or taking care of ailing relatives.
The program requires no contributions from employers and is 100 percent funded by an employee payroll deduction amounting to about $33 a year, or 64 cents a week. Participating workers will receive no more than two-thirds of their weekly pay, up to a maximum weekly benefit of $524 in 2008.
Larger companies must hold a job for the employee on leave. Companies with 50 or fewer workers will not have to hold a job.
The state estimates that approximately 38,000 individuals or about 1 percent of New Jersey’s workforce will collect benefits annually.
Businesses Concerned about Economic Impact of Paid Family Leave
In many cases, business organizations have been opposed to the paid family leave initiatives. In the case of New Jersey, New Jersey Business & Industry Association President Philip Kirschner issued a statement that called the law “a paid leave mandate on businesses that are already struggling to survive a recession.” He predicts it will lead to lost jobs.
“This mandate will force businesses to pay for temporary workers, overtime, or lost productivity in their workplaces,” he added. “Many jobs simply won’t get done. It will be difficult for companies to find skilled temporary workers to fill positions, if they can find them at all. This will damage businesses’ relationship with their customers, and it will put them at a disadvantage with competitors in neighboring states that don’t have this mandate.”
He said that without this law, employers were able to balance work and family needs of employees. They used sick days, vacation days, flexible scheduling and other methods.
Worker Advocates Back Paid Family Leave
But supporters say that employees should not have to choose between caring for a new baby or ill relative and going to work. New Jersey Gov. Jon Corizine said its paid leave law will make New Jersey more competitive economically and the state’s AFL-CIO called the legislation, “much needed and long overdue policy for New Jersey’s working families.” The union wants to see the entire nation adopt similar plans.
Individual states were considering similar paid family leave proposals as of early 2008. Legislation was under consideration in Congress as of 2008, to enact a less comprehensive national paid family leave program.[/link]
