Paid Family Leave
In 1993, the United States signed the Family Medical Leave Act (FMLA) into law. The FMLA affords employees that work for a covered employer the right to take time off for things such as having a baby or taking care of a sick loved one. It does not, however, afford employees the right to get paid during that time. Paid Family Medical Leave in Minnesota would change this.
As a country, 84% of people support a Paid Family Medical Leave policy. As a business owner, I believe this policy would benefit and improve my business. As a legislator and a candidate, I talk about this issue frequently as it would impact every demographic.
Where the United States Stands
The United States is an outlier on this issue and has been for quite awhile. Including Papua New Guinea and a few islands in the Pacific Ocean, we are among the few countries of the United Nations that does not have some sort of universal Paid Family Medical Leave.
How it Would Work…
The bill is designed to pay employees a partial wage based on income level - (60-90%). The money would be covered on a similar platform to the unemployment insurance program. The Department of Employment and Economic Development (DEED) would administer the plan which would help alleviate extensive paperwork for small business owners. Many small businesses generally lack the capital and the scale to provide earned benefits like Paid Family Medical Leave, even when business owners want to provide those benefits. The plan would be funded by small employer and employee contributions of 0.31% of employee earnings which make the PFML Act fund self-funded. Similar policies in WA, MA, CA, NJ & RI cost on average less than $2.00 per week per employee.
This system would be administered by the state, and would not create a burden of paperwork on employers. Any leave would have to be approved through the PFML program, not the employer. Benefits would be comparable between my small business and a large corporation, leveling the playing field to attract and retain employees.
Cost
The price would be competitive. There is nothing on the market that you can create or buy from an insurance company that would be comparatively affordable. The cost to the employer would equate to buying each employee one coffee each week. And that cost could be partially shared with the employee.
What it Entails…
The bill that has been proposed now, would entitle employees up to twelve weeks of paid leave for the birth of a child, care of a sick spouse or elderly parent, treating a medical condition and other family medical needs. In states where a plan comparable to this is in effect, the average time taken off is closer to four weeks than twelve.
What the Other Side is Saying
Opponents of this plan are concerned that all workers will take off all at the same time and state that their businesses cannot run without key employees. The reality is that key employees get sick too. Chemotherapy treatments can’t wait. The truth of the matter is that all employees will have personal needs sooner or later, but if they know their job is secure, they will return as fast as possible. When employees know they are valued and supported, they develop more allegiance to their workplace. In addition, employers do not have the burden to pay the partial wage that employees on leave receive. Employers can use the money they are not paying their employee on leave to hire part time help or use it for other purposes. As shown in other states, workers only take time off that they truly need. Minnesotans want to work and allegations of rampant abuse are not born out by the experiences in other states.
I Am a Small Business Owner
Workers should not have to choose between their families and their jobs. As a business owner, it is important to me that my employees are able to take care of themselves and their families. Better economic security on the job engenders a more dedicated staff with less turnover.
Paid Family Medical Leave is a family values issue. It will bring more workforce stability within small businesses. When you have stability in your workforce, your business has a better chance to flourish. Research has shown that Paid Family Medical Leave is linked to better health outcomes for children and mothers. But it is designed to help all family members. Grandparents often need assistance too.
Our economy in Minnesota, with a declining workforce, desperately needs workers. Access to a Paid Family Medical Leave plan has shown a significant return of more women to the workforce. If Minnesota enacted this policy we would also attract workers from surrounding states. Our economy is expanding faster than our workforce so we need to take any opportunity we can to gain valuable employees for our small businesses.
The Time Has Come
The time has come for Paid Family Medical Leave, and Republicans know it too. One of the most impactful things that happened at the end of last session is that the Republicans came out with their own version of Paid Family Medical Leave. We finally have a starting point from which to have real discussions on how to move forward with a policy. From this common ground we need to do the work and get this done for the benefit of all Minnesotans and their families.
Look for our next blog on Sunday, September 25th.