A Better Balance Issues Public Comment on Labor Department Notice
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A Better Balance (ABB) is writing to comment on the request for information (RFI) issued by the Women's Bureau of the
The
Although it is not mentioned in the
I. Paid Family and Medical Leave Must Work for
Question 1: Who benefits from paid leave and who bears the costs? (Also see Section III(A) below)
At some point in their lives, nearly every working person will welcome a new child, deal with their own serious health issue or need to provide care to a seriously ill, injured or disabled loved one. Yet despite progress, most people still do not have the security they need to take time away from their jobs. Millions of people are forced to choose between their wages and their ability to care for themselves or their families. Just 19 percent of the workforce has paid family leave through their employers, and only 40 percent has personal medical leave through an employer-provided disability program./1
The reality is especially stark for people of color and low-wage workers, who face the greatest disparities in their ability to access and afford leave. In fact, access to paid family leave for the lowest-income workers has increased by just 2 percentage points in the last 7 years, to a paltry 5 percent in 2019,/2 even after the enactment in 2017 of tax credits intended to incentivize employers to offer paid leave. These low access rates prove that private sector policies alone are insufficient to solve our nation's paid leave crisis.
Additionally, recently released data from the DOL's 2018 FMLA surveys shows that though the FMLA does not require that leave be paid, access to paid leave for all workers is crucial. The most common reason cited by workers who needed leave but didn't take it was that they couldn't afford to take unpaid leave/3--nationwide, a striking 34 percent of workers receive no pay while on leave./4
Low-wage workers and workers that are ineligible for FMLA are much more likely than their counterparts to lack access to paid leave./5
The survey also confirmed that for many, receiving partial or no pay while on leave results in the worker struggling to make ends meet./6
American families have a critical need for paid family and medical leave insurance programs, especially as there are fewer non-working family members to provide care to children and elderly relatives. Paid leave is a cross-cutting societal issue that has specific benefits for different populations including women, children, LGBT families, the elderly, and businesses, as well as for society as a whole. Access to paid leave increases workforce attachment for mothers and rates of breastfeeding, saves businesses money through retention of employees, and reduces stress for family caregivers, among numerous other benefits. Paid leave also helps society as a whole as families who have access to it are healthier, more economically secure, and less likely to require taxpayer-funded public assistance resources. The lack of paid leave costs
Evidence from the states with paid leave programs has shown that in order to truly meet the needs of working people, a paid family and medical leave program must meet certain basic standards. It must be comprehensive by allowing leave for all FMLA-covered events, particularly as our nation ages and the shortage of paid caregivers means more working people are called upon to care for their family members.
It must provide the same amount of leave regardless of a worker's gender. It must replace individuals' wages at an adequate level so that people can actually afford to take time off, as well as a meaningful duration of leave, so that people have enough time to meet their family or medical needs. It must allow leave to care for an inclusive range of family members in order to adequately reflect the way our families really look--particularly for families of color, immigrant families, and the LGBTQ community. It must guarantee job protection so that people can take the time off they need without having to worry if their job will still be there for them when they return. And it must be funded affordably and sustainably, without cutting other essential programs that working people need.
II. A Comprehensive, Publicly Run Paid Leave Program Is the Best Option for Our Nation
Question 2: What are the needs of workers and employers when it comes to paid time off for care obligations? What elements of the existing public (e.g., state-administered) and private (employer-provided) options work well? Why do they work well? Are there any features and provisions that make a paid leave program successful for all stakeholders?
Question 3: What does not work well and why; and what are the existing gaps? What could be done to improve the existing patchwork of programs, which include state and employer-sponsored paid options? What are the impediments, costs and otherwise, faced in implementing those improvements?
Question 8: What are the features of an ideal paid leave program, from the perspective of a worker or employer?
America's working families need permanent, comprehensive paid family and medical leave. Fortunately, states are leading the way toward a more universal model that is proven to work. Nine states, including the
Publicly administered paid leave programs are meant to create baseline benefits that employers are free to build upon. For example, employers can "top-up" paid leave benefits provided through a public plan to replace more or all of their workers' wages and they can offer a longer period of leave. As a national paid leave system is developed, employers and insurers could work together to create products that fulfill the needs of workers and employers while ensuring an affordable, inclusive baseline program for all workers. While opponents of publicly provided and administered paid leave often claim some workers will lose better benefits that they currently have if a public program is implemented, there is absolutely no evidence from states that this has happened. The incentives that high-road employers have to use paid leave as a recruitment and retention tool will remain as it is now and the insurance market will adjust.
From the experience of the states, we know that there are certain key policy elements that must be included for a strong paid family and medical leave program. The following are key policy points that should be included in a comprehensive bill.
A. Paid leave must cover health, caregiving, bonding, and military family needs.
Strong paid family and medical leave programs ensure the ability of workers to take paid leave to address their own serious health needs, care for a loved one dealing with a serious health need, bond with a new child, or address the impact of military deployment. All four purposes are already embodied in the Family and Medical Leave Act (FMLA) and address the most important needs for leave across workers' lifespans. All state paid family and medical leave programs cover or will cover leaves for workers' own health, for family caregiving, and for bonding with a new child (including foster or adoptive children, for parents of any gender), while most also cover the needs of military family members dealing with the impact of deployment.
Nationwide, about 3 in 5 private sector workers lack access to short-term disability insurance through their employers, leaving them vulnerable when they need time off from work to address their serious health needs./8
Among low-income workers, these numbers are even more stark. Over 80% of those in the bottom quarter of earners and nearly 90% of those in the bottom tenth of earners lack access to short-term disability insurance through their employers./9
When workers do not have the leave they need, they may defer or forego necessary medical treatment./10
Today, nearly one in three
With an aging population, these numbers will only increase in the future. Family caregivers can help these individuals recover more quickly and spend less time in hospitals./12
Policies that support family caregiving create savings that benefit all taxpayers. Unpaid family caregivers not only help to ease the burden on our crowded hospitals and long-term care facilities but also create enormous financial savings. For example, recipients of family caregiving are less likely to have nursing home care or home health care paid for by Medicare./13
Because most caregivers providing care for adults are employed,/14 the demands of providing care are in constant tension with earning a much-needed income. In addition, seriously ill children benefit when their parents can afford time off to care for them. Research shows that ill children have better vital signs, faster recoveries, and reduced hospital stays when cared for by parents./15
For over a decade, the FMLA has provided essential leave protections to military families for deployment-related needs. Recognizing the importance of honoring our nation's heroes, most states with paid family and medical leave programs have followed suit--
Families that make these sacrifices deserve the paid time off they need to address the effects of deployment on their families and their lives. Moreover, due to the impacts of the military lifestyle, a shocking 30% of military spouses are unemployed, despite actively seeking employment, and many more are underemployed./17
52% of military spouses reported that unemployment and underemployment are the main obstacles to financial security./18
Ensuring that these patriots can take the time away they need and then return ready to work can help them maintain employment and better support their loved ones serving abroad and those who remain at home.
B. Workers need a decent wage replacement in order to be able to take time off,
especially workers at the bottom of the economic spectrum.
A strong paid leave program provides a progressive wage replacement rate that workers, especially low-income workers can afford to use. Under progressive wage replacement systems, lower-income workers, who need to use all of their income to meet their basic needs, receive a higher proportion of their income while they are on leave. Progressive wage replacement systems strike a reasonable balance between meeting the needs of low-wage workers and offering a reasonable maximum benefit to help protect the solvency of the fund.
The wage replacement rate (the percentage of their own income workers receive while on leave) is an extremely important element of a paid family and medical leave program: if the rate is too low, workers will not be able to afford to take the leave they need. This problem can be especially acute for low-income workers living paycheck to paycheck, who need every dollar of their income to pay their bills. Moreover, for programs that are partially worker-funded, it is particularly essential to ensure that workers will not be required to pay for a program they cannot afford to use.
Though low-income workers are the most vulnerable, workers of any income level can find themselves unable to afford to take leave if the wage replacement rate is too low. In a major
For this reason,
Most state paid family and medical leave laws provide a progressive wage replacement rate./20
Typically, this means that the program replaces a higher percentage of income up to a threshold amount (often called the "bend point"), then replaces a lower percentage of income above that amount. In effect, this creates a sliding scale of income replacement. For example, the paid family and medical leave program in
C. Workers must have sufficient time to care for themselves and their families.
A strong leave program would provide at least 12 weeks of paid family and medical leave. This minimum benchmark, which is also consistent with the FMLA, ensures that workers have the time they need to attend to their own or a family member's serious health needs, address the impact of a family member's military deployment, or bond with a new child. Providing 12 weeks of coverage would also match the length of paid family leave coverage in
Programs vary in the number of weeks of benefits workers can receive. For their own medical needs, workers can receive benefits for 52 weeks in
provides 6 weeks of benefits to care for a seriously ill or injured loved one and 8 weeks of benefits to bond with a new child.
Programs vary in the extent to which workers can combine family and medical leave benefits sequentially.
The health benefits of providing 12 weeks of leave for bonding are overwhelming for children, mothers, and fathers. Children whose mothers do not return to work full time in the first 12 weeks are more likely to receive medical checkups and critical vaccinations./26
Mothers who take at least 12 weeks of leave are also more likely to breastfeed, with important lasting health benefits for their children./27
Fathers who take longer leaves experience greater engagement in their children's lives;/28 greater paternal engagement has cognitive and developmental advantages for children./29
For foster children, the first few months are a critical adjustment period in the transition to a new placement,/30 during which children need time to bond with their foster parents. Experts including the
For new birth mothers, having less than 12 weeks of family leave is associated with increased symptoms of postpartum depression./32
For working fathers, taking longer paid family leave means increased satisfaction in their contact with their children./33
A strong paid family and medical leave program protects the jobs of workers taking paid family and medical leave by ensuring they have the right to return to work following leave. Job protection for all employees covered by the program is an essential element--without it, it's not leave. This is especially important for low-income workers, who will often have less job security than other workers, and, because they change jobs more often than other workers/34 and are more likely to be working part time/35 (including many part-time workers who would prefer to be working full time), may be less likely to be covered by leave laws like the Family and Medical Leave Act./36
States are leading the way in providing paid leave with job protection.
The need for job protection for workers in a paid family and medical leave program cannot be overstated.
The need for such leave occurs at some of the most stressful times in a person's life: the arrival of a new child, a health crisis in the family, or a looming deployment. At these times, workers shouldn't have to worry whether they will have a job to return to after their leave. Without a legal right to get their job back, many workers will be unwilling to risk their livelihood by taking the leave they need--the risk to their long-term economic security will be too great. Without job protection, workers will pay for a program they can only use by risking their long-term economic survival. In one
In
The evidence is overwhelming: paid leave is a win-win for workers and businesses, and the most equitable, sustainable model for paid leave is a national, publicly run social insurance program that builds on the innovation that states have pioneered.
We appreciate the opportunity to submit this comment. If you have any questions, please contact us at [email protected] or 212-430-5982.
View full comment at: https://downloads.regulations.gov/DOL-2020-0004-0126/attachment_1.pdf
Sincerely,
A Better Balance
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Footnotes:
1/
2/ See note 1;
3/ Sixty-six percent of employees report that their reason for not taking needed leave is their inability to afford unpaid leave. Employee and Worksite Perspectives of the Family and Medical Leave Act: Results from the 2018 Surveys at Exh. 6-3 (2020), https://www.dol.gov/sites/dolgov/files/OASP/evaluation/pdf/WHD_FMLA2018SurveyResults_FinalReport_Aug2020.pdf.
4/ Id. at iv.
5/ Low-wage workers (52%) less commonly report having access to paid leave for their own illness or medical care than do other workers (80%). Only 39% of low-wage workers have access to paid leave to care for a family member, compared to 65% of non-low-wage workers. Id. at Exh. 35.
6/ Two-thirds (67%) of employees who did not receive full pay while on leave report finding it much more or somewhat more difficult to "make ends meet" during their leave. Id. at 33.
7/ Glynn, S. J. (2020,
8/
9/ Id.
10/
11/
12/ See, e.g., A. Houser &
13/ Houser &
14/ Caregiving in the
15/ See
16/
17/ Id. at 10.
18/ Id.
19/ Cal.
20/ Cal. Unemp. Ins. Code Secs. 3301(b), 2655(e) (West 2019);
21/ Wash.
22/ Wash.
23/
24/
25/
26/
27/ Id.
28/ del
29/
30/
31/
32/
33/ Haas & Hwang, "The Impact of Taking Parental Leave on Fathers' Participation in Childcare and Relationships with Children", 85-104.
34/
35/
36/
37/ Mass.
38/
39/
40/
41/
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The notice can be viewed at: https://beta.regulations.gov/document/DOL-2020-0004-0001
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