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Republicans want to give corporations yet another tax cut and call it paid family leave

Tuesday, November 21st, 2017

Americans want paid family leave—something people in most nations around the world already get. So it sounds like something to cheer that there’s a paid family leave provision in the Senate Republican tax plan, right? Yeah, no. This is very much a Republican family leave proposal, which is to say it’s a giveaway to big corporations that won’t get much for working Americans. 

The bill would give companies a tax credit for a small proportion of the worker’s pay, companies only get the credit at the end of the year—so if they can’t afford to offer leave up front, they can’t take advantage of it—and it expires in 2019.

“It’s a flimflam,” said Ellen Bravo, co-director at Family Values@Work, a national coalition of paid leave advocates. “It’s pretending to say we’re giving you something new that people urgently need when, in fact, it’s a giveaway to the bigger corporations that can already afford to do it.” […]

Several conservative economists agree. This kind of tax credit would most likely be embraced by companies that already offer paid family leave, wrote Aparna Mathur, a resident scholar in economic policy at the American Enterprise Institute.

“This is only a small step forward in this debate, not a giant leap,” Mathur said. “Much more can and should be done.”

Not to mention, including something they can call paid family leave is a great Republican trick for pretending their giant tax cuts for rich people package is good for working families. And—like this flimflam proposal—it’s just not.

Call your senators now at (202) 224-3121 and urge them to vote no on this giveaway to corporations and the wealthy at the expense of working families.

This blog was originally published at DailyKos on November 17, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

Washington state gets paid family leave

Tuesday, July 18th, 2017

 Paid family leave is becoming law in Washington state. The state legislature passed and Gov. Jay Inslee has signed a law giving workers up to 12 weeks of paid family leave for birth, adoption, or the worker’s own or a family member’s medical condition, and up to 16 weeks in a year:

The Washington state program would benefit low-wage workers because those earning less than half of the state’s weekly average would receive 90 percent of their income—to a maximum of $1,000 per week. The benefits are based on a percentage of the worker’s average weekly wage and the state’s weekly average wage, which was $1,133 in 2016.

The program is largely funded by workers, who will pay a premium of 0.4 percent of their wages each paycheck into a state-run insurance fund. This would cost a minimum-wage worker about 3 cents an hour, according to the bill’s sponsor. Employers are responsible for picking up at least 55 percent of the medical leave premium—or more if they choose to do so.

“This new law is an affordable and predictable solution to providing an important benefit for life’s emergencies,” Sara Reilly, co-owner of Darby’s Café and Three Magnets Brewing Co. in Olympia, Washington, said in a statement.

How’s that for a much-needed piece of good news? But of course every time a state or city passes a minimum wage increase, paid sick leave, or paid family leave, it’s a reminder of how far short our federal laws fall, and how much of a fight we have to elect Democrats to Congress and the presidency before we can change this.

 This blog was originally published at DailyKos on July 8, 2017. Reprinted with permission. 
About the Author: Laura Clawson is labor editor for DailyKos. 

Trump’s Family Leave: An Empty Envelope for American Workers

Thursday, June 8th, 2017

The White House budget dispels any hopes Trump might keep his promise to extend a helping hand to the nation’s millions of small business workers with a family and medical leave act that works for them.

Instead, the Trump team hands American workers an empty envelope.

Small business owners had reasons to hope: since the campaign, rumors have swirled the president might support a federal paid leave program. Candidate Trump had endorsed a call by his daughter Ivanka, who paints herself as an empathetic business owner, mother of three, and tuned-in working woman, to enact paid family leave.

Earlier this year, progressive lawmakers in the Senate also introduced the Family And Medical Insurance Leave (FAMILY) Act. Small business owners cheered this proposal, which lays out a framework for a strong national paid leave program that meets the needs of small business owners and workers alike.

Trump’s budget does include paid family leave, but as analysts unpack the proposal, it has become increasingly clear that his plan, unlike the FAMILY Act, doesn’t work for small businesses, their employees, or their communities.

Here are the top five reasons Trump’s family leave plan doesn’t work.

1: Trump’s “family” leave doesn’t cover the whole family

Trump’s budget proposal only includes new mothers and fathers. By contrast, the FAMILY Act covers the diverse caregiving situations that most small business owners and their employees face during their career. This includes recovering from personal illness or taking care of a sick spouse, an aging parent, grandparent, domestic partner, or adult child.

For small business owners, especially sole proprietors, a universal federal paid family and medical leave policy can make or break their business if they or a loved one needs extended care.

2: Paid leave is not guaranteed for all who work

Trump’s plan fails to establish a nationwide standard for who qualifies for paid leave. It’s up to each state to decide eligibility, which is likely to be based on restrictive unemployment rules that are already on the books.

In order for paid family and medical leave to really work for Main Street small businesses, everyone who works should to have the ability to earn leave from work to care for their families or themselves without fear of losing their job or not being able to pay their bills.

Paid leave should be available in all businesses, regardless of size or sector, and to all workers, whether they work part-time, full-time, or are self-employed. And everybody should be able to access the same amount of leave time, regardless of gender.

3: The funding is shaky

To fund a federal leave policy, the FAMILY Act sets up a simple payroll tax that amounts to about $1.50 per week per employee – the price of a cup of coffee. Like Social Security, that money goes into a pooled insurance account that covers all workers who are paying into the pool, and the program is administered by a new paid leave office.

The White House’s proposal, however, puts the tab on states’ budgets, indicating that state unemployment insurance funds will cover the cost by cutting benefits or figuring out how to collect overpayments. In many states, those unemployment funds are already far short of the reserve amount.

Rather than establish definitive federal fund for paid leave, Trump passes the buck, pun intended, to taxpayers, shifting the burden to the states to figure out how to administer and pay for his policy.

4: Trump’s plan is neither clear nor straightforward

The majority of small business owners are not equipped to handle the time and expense of administering a paid family and medical leave plan. It’s essential that any federal plan be easy, efficient, and minimizes the responsibilities of small business owners.

The FAMILY Act outlines a national program that builds off existing, successful state models, with streamlined coordination and a central administrative office. The Trump plan, on the other hand, is about as comprehensive as one of his Tweets – a couple of broad strokes, no detail. The details are all left in the hands of the states, from their level of participation to eligibility, funding, benefits, administration, and protections for employees.

5: Trump’s plan doesn’t consider small business owners

Fundamentally, a paid family and medical leave plan that works for small businesses needs to do three things:

1) Level the playing field for small businesses to compete with larger companies when it comes to attracting and retaining employees.

2) Invest in the families and communities that support small businesses by strengthening basic living standards for everyone.

3) Provide a measure of security for small business owners who need to recover from an illness or care for a sick loved one.

Across the board, the paid leave plan outlined in Trump’s budget fails to meet these needs of small businesses.

Alternative Visions

The Washington think tanks American Enterprise Institute (AEI) and Brookings have released their own report on the issue, “Paid Family and Medical Leave: An issue whose time has come.” Touted as a bipartisan compromise plan, the AEI-Brookings Working Group on Paid Family Leave proposal only includes parental leave, falling far short of the inclusive and comprehensive policy American small business owners and workers need.

The FAMILY Act is the type of legislation that would help small business owners keep pace with the needs of today’s workforce. It proposes a national paid family and medical leave program that would level the playing field for small businesses to compete, reduce turnover costs, provide a critical measure to security for business owners themselves, and support local economies.

Meanwhile, the Trump plan – underfunded, restrictive, and lacking in detail – seems more like a political play for points than a serious plan to boost small business in America.

This blog was originally published at OurFuture.org on June 6, 2017. Reprinted with permission. 

About the Author: Angela Simaan is Communications Director for Main Street Alliance, a national network of small business coalitions working to build a new voice for small businesses on important public policy issues.

DC Considers Cutting-Edge Paid Family Leave Law

Friday, December 2nd, 2016

“I sometimes imagine how my life would be different if my mom had the option of paid family leave,” Travis said. The District of Columbia resident was born prematurely. Because his mother could not get the time off from work to make necessary hospital visits to care for her fragile son, “She had to give me up to be raised in Florida by other family members.”

Travis and his fellow Washington, D.C., residents may no longer face those wrenching choices, thanks to the Universal Paid Leave Act, a proposed paid-leave law introduced this past Tuesday in the D.C. City Council. Among the most progressive of such paid-leave laws in the nation, the employer-paid leave program includes 11 weeks of gender equal parental leave, eight weeks of paid family caregiving leave and up to 90% pay replacement for low-income workers on leave. Family leave includes parental leave for new parents after the birth, adoption or fostering of a child, as well as caregiving leave to care for a sick, injured or dying loved one.

“58% of D.C. families can’t afford to take unpaid leave,” said Jackie Jeter, president of the Metropolitan Washington Council AFL-CIO, which worked with a coalition of paid-leave advocates to shepherd the bill through the legislative process over the past year. The D.C. Paid Family Leave Coalition, a network of nearly 200 businesses, nonprofits and advocacy organizations, said it was “extremely pleased to see the council affirm the need for paid family leave and move toward creating a program that works for everyone,” but called for strengthening the bill. Initial drafts included medical leave, available for people who suffer serious injuries or illnesses and need time away from work to recover.

“While council members finalize the details around paid leave legislation, they have a moral obligation to include medical leave coverage for a large portion of our city’s most vulnerable working people and families,” said Jaime Contreras, vice president of SEIU 32BJ, a steering committee member of the D.C. Paid Family Leave campaign. “Paid medical leave is especially urgent for our members and others in D.C. who earn low wages, as only 17% of low-wage workers nationally have access to short-term disability plans (aka paid medical leave). At a time when the Affordable Care Act is under threat and when medical expenses are the leading cause of personal bankruptcy, working families are relying on their council members to create a program that helps their families stay financially stable during health crises.”

“I’m currently six months pregnant with my first child and am worried and nervous about the time when I can no longer work,” said Ward 8 resident Nicole earlier this year. “I won’t be able to pay bills or rent. I have never had to be on public assistance and do not want to rely on that. I’m a hard worker and always have been. Even though, I’ve been with my restaurant job for a year and a half, any time I need off of work will be unpaid.”

Under the proposed legislation, about 65% of Washington, D.C., residents who work would be covered—supporting hundreds of thousands of family members. The remaining 35% work for the District or federal government, or commute outside the city. Of those covered, 100% will be able to afford leave, advocates say. Paid family leave is more critical than ever because 59% of mothers with infants are now in the workforce, while just 12% of private-sector workers get paid leave through their employers. Studies show that when a parent can take time away from work to care for a child after birth or adoption, it results in improved health for both.

The law’s cost will be covered by a 0.62% increase in employer-paid payroll taxes, which bill sponsor At-Large Council Member David Grosso called “a pretty good deal,” noting that it will enable District residents “to do what matters most to them in life and that is be close to the people they care about during great moments of transition in their lives.” At the same time, the D.C. Paid Family Leave Coalition is calling for a return to the 1% tax initially proposed, which would enable the city to offer medical as well as family leave.

This blog originally appeared in aflcio.org on December 1, 2016.  Reprinted with permission.

Chris Garlock is the Union Cities/Street Heat Coordinator for the Metro Washington (DC) Council, AFL-CIO, and the Director of the DC Labor FilmFest. He’s built one of the largest mobilization databases of any Labor Council or State Fed in the country, and more than 10,000 activists and supporters receive daily weekday updates on the metro-area labor movement via the award-winning UNION CITY ezine. He organizes the annual DC Labor FilmFest, one of the only labor-themed film festivals in the world, founded in 2001 to screen films by, for and about work and workers. Garlock has also worked as a radio producer for populist Jim Hightower, Coordinator of the Rochester (NY) Labor Council, and as a reporter, editor, columnist, radio commentator, as well as dishwasher, prep cook and chef (he’s a volunteer cook twice a month at Miriam’s Kitchen). A strong amateur go player, Chris edits the American Go E-Journal, the largest English-language publication about the game of go, with nearly 13,000 readers worldwide.

D.C. Councilmembers To Introduce Bill Guaranteeing 16 Weeks Of Paid Family Leave

Tuesday, October 6th, 2015

Bryce CovertOn Tuesday, seven city councilmembers in the District of Columbia will introduce a paid family leave bill that would create the most progressive system in the country and serve as a model for other cities that might be interested in paid leave. If it eventually gets passed and signed into law, it would be the first city-level program in the country.

The bill, spearheaded by Councilmembers David Grosso (I) and Elissa Silverman (I), would pay out 16 weeks of wages during a leave for a new baby or to care for a sick family member for those who both live in the District as well as those who live elsewhere but work there. That’s in line with the district’s current 16 weeks of unpaid but job guaranteed leave, but more generous than the 12 weeks in Congressional Democrats’ paid family leave bill and what’s offered in the three states that have implemented paid leave programs, which range from six to eight weeks.

Workers would also be able to avail themselves of a generous benefit. They would get fully reimbursed for the first $1,000 of their weekly pay, and then if they make more than that would get 50 percent of the next $1,000. The federal leave bill that’s been introduced by Democratic lawmakers, for instance, only replaces two-thirds of workers’ income, capped at $1,000 a week, and the three states that have implemented paid family leave have similar policies. “For the lowest-wage workers and even those in the middle class, especially in jurisdictions with a very high cost of living like Washington, D.C., it’s very difficult to make ends meet on a salary, and it’s impossible to make ends meet on half of a salary,” explained Kitty Richards, who works on Councilmember Silverman’s staff and was involved with the paid family leave bill. “We’ve seen that low-wage workers really struggle to take leave that’s paid out at a low rate.”

The funding structure for the program would also look slightly different given some of the unique circumstances in D.C. The district can’t mandate what the federal government offers its employees, so workers who either reside outside of the District or those who work for the federal government will have to pay into the fund through a payroll tax. But all other employers within the district will also pay a small tax — probably around 1 percent — into the fund.

D.C. has already passed some policies near and dear to progressives’ hearts: it raised its minimum wage to $11.50 by 2016, passed paid sick leave in 2008 and then strengthened it in 2014, and guaranteed eight weeks of paid family leave for city government employees late last year. (Tuesday’s paid family leave bill will also propose extending city employees’ paid family leave to 16 weeks to match all other employees’.)

Those efforts, particularly paid leave for city employees, inspired Grosso to find a way to implement paid family leave for all workers in the area. “Always in the back of my mind was, ‘How can we extend this to the private sector as well?’” he said.

His quest got a boost last year when the Department of Labor awarded the district with a $96,000 grant to study implementing paid family leave. That money allowed D.C. to get an accurate read of the costs and benefits of implementing a program. It also helped propel the effort forward. “Grants from the federal government are creating momentum and excitement and policy expertise around the issue,” noted Richards.

They’ll need that momentum moving forward to make sure the bill becomes reality. After its introduction Tuesday morning, it will get referred to committee and then will come hearings and input before it actually gets a vote. At least four councilmembers have already signed onto the bill with Grosso and Silverman, but they’ll have to work to get everyone on board. “It’s definitely a marathon, not a sprint,” Silverman noted. “Getting to the introduction is kind of like getting to the half marathon mark.”

“The main issue is to make sure that what moves forward is a really strong bill, that we don’t just pass something but pass something that’s really strong,” said Rebecca Ennen, development and communications director at Jews United for Justice, a group that has been deeply involved in pushing the bill forward.

Then Mayor Muriel Bowser (D) would have to sign it — she’s believed to be supportive — and the fund would have to be set up and fully funded before any District residents can actually take paid leave. If things go quickly and smoothly, Grosso estimates that the bill could be on the mayor’s desk within six months and, if it were signed, residents could start taking leave a year later.

Success won’t just mean guaranteeing benefits for D.C. residents. Those involved hope that the bill and the program design can be replicated elsewhere. While three states have paid family leave, the U.S. is an outlier among nearly the entire world for not guaranteeing paid maternity leave and among developed countries for not guaranteeing paid paternity leave. “I think we have the opportunity to set a standard here in the District and be a model,” Silverman said.

Grosso agrees. “We’re hoping to bring national attention to this so we can be a model for other jurisdictions getting this done at the local level,” he noted. While the vast majority of paid sick leave bills have passed at the city level, all paid family leave programs have been statewide. But D.C.’s effort might inspire other cities to take it up.


This blog originally appeared at ThinkProgress.org on October 6, 2015. Reprinted with permission.

About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.


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