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April 14, 2003 Issue
Current Legislative Activity on Paid Family Medical LeaveYour 2003 Human Resource legislative issues tour continues with paid family medical leave. This issue's great importance stems from the far-reaching implications of expanding FMLA rights. This state expansion goes beyond the legislation's original intent. This often is not an issue of right or wrong, but economic survival and administrative difficulty. Paid family medical leave also has a profound impact on recent economic recovery efforts. The United States' traditionally conservative view on this issue attracted many foreign organizations and their much-needed jobs to our nation. Recent activity to expand FMLA protection may make our country less attractive when future economic expansion is needed. Many human resource departments have been downsized due to the economy. Increased administrative burdens take valuable human resources time from efforts to maintain a positive work environment. The following is a summary of research regarding recent activities pertaining to family leave. Beginning January 1, 2004, Californian employees will pay an average of $27 per year into the Family Temporary Disability Insurance (FTDI) fund. Six months later, they will be entitled to six weeks per year of paid leave at a disability benefit rate of 55%, under circumstances outlined by the federal Family and Medical Leave Act (FMLA). Under the FMLA, eligible employees working for employers with 50 or more employees within a 75-mile radius must be granted up to 12 workweeks of unpaid leave per year. Acceptable reasons for leave are
While FTDI does extend leave to employers with fewer than 50 employees, it does not extend FMLA job protection to those employees. FTDI, and proposed programs like it, are a largely Democratic, legislative response to a widespread enthusiasm for paid leave. Statistics from online surveys concur with those collected by the National Partnership for Women and Families: roughly 4 out of 5 Americans are in favor of paid family/medical leave. This may be explained, in part, by the results of a 2000 Labor Department survey, which found that 77.6% of those who wanted to use FMLA leave, which allows for 12 unpaid weeks per year, could not afford to. Myriad related legislation has been introduced in 28 states, all of which causes no end of worry to business groups and human resource practitioners. In California, it is the predicted, widespread use of paid leave that causes concern over absenteeism. In many other states, further debate revolves around the source of funding. Unlike the FTDI, which is 100% employee-funded, proposed legislation in New York and New Jersey would fund paid leave with disability insurance funds. New York’s pending assembly bill A3275 (Nolan) would require 10 days of paid school visit leave, an especially reviled addendum, as well as 7 days of bereavement leave, while eliminating the current 7-day waiting period - all provisions certain to wreak havoc with PTO programs. Those who protest FTDI, calling it a "job killer" and "fool's gold," are more riled still by legislation that does not tax employees for leave. A long-debated federal regulation known as "Baby UI" would fund leave through unemployment insurance. SHRM (Society for Human Resource Management) has been among the groups protesting the regulation, which the Bush administration has proposed putting to bed. Minnesota and Kansas are considering legislation that would fee employers to provide benefits similar to FTDI. Connecticut's and Missouri's bills are structurally similar to FTDI, placing the burden on employees. Pending programs in Hawaii and Arizona would tax employers and employees equally. Nebraska's bill would establish a Wage Replacement Savings Plan, whereby employees invest income and then borrow from it when invoking the FMLA. Pennsylvania, Illinois, and Minnesota have proposed legislation offering tax credits to employers who offer 12 weeks of paid family and medical leave. Many Washington state workers were recently given the right to use their paid time off to care for sick children and seriously ill family members. Numerous bills that would expand the FMLA are also pending at the federal level. This issue has related emotional and economic issues. Many HR professionals make every attempt to accommodate their employees beyond the requirements of current legislation. To be viewed as the employer of choice, and thus attract quality employees, organizations must be flexible in addressing the pressures of work / life balance. The proven influences of market supply and demand, and free market competition should drive changes in US employers' responses to employees' personal needs.
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