Most American workers are eligible for up to 12 weeks of job-protected leave under the Family and Medical Leave Act (FMLA), which is a law that establishes parental and convalescent leave programs for many employers. Unless under special circumstances, employees covered by FMLA cannot be dismissed for taking leave to care for sick immediate family members, bond with a new child, or recover from an injury or illness. The FMLA is an essential benefit for American workers, but it has a significant flaw: it does not mandate employers to pay employees during their eligible leave periods, with limited exceptions for COVID-related situations. This means that paid leave in the United States is typically optional.
While most American workers at FMLA-eligible employers may receive some paid leave, particularly for childbirth and adoption, the benefit usually covers short periods, with about half receiving full pay for eligible leave and 17% receiving partial pay. However, the FMLA was designed for long-term life events like welcoming a new child or caring for a terminally ill family member, not for frequent shorter-term situations like short-term dependent care due to school closures or illnesses.
In the U.S., paid family leave is not widely available to workers, with only a small percentage having access to employer-sponsored plans specifically for family leave. In contrast, many developed countries provide national entitlements to paid home care leave for parents for weeks or months. Some U.S. states, including California and New York, offer paid family leave insurance to help cover the costs for employers, and some companies like General Mills and Facebook provide generous paid family leave allowances.
Given the current social disruptions and economic challenges from the COVID-19 pandemic, more employers are expected to enhance their benefits, including offering flexible scheduling and employer-paid child care. So, it’s essential for workers to understand paid family leave options and for employers to consider implementing such programs.
Expansive paid family leave, like the one offered by a Vermont nonprofit during the pandemic, can provide significant support to employees facing various domestic challenges. This type of leave can cover a wide range of needs, from caring for sick family members to plugging in child care gaps due to unforeseen circumstances.
Many major employers in the U.S., such as Netflix and Deloitte, offer extended paid family leave beyond the FMLA requirements, with some providing up to a full year of paid time off for new parents. However, access to paid family leave varies across industries and is more common among higher-wage earners.
Some states have PFL insurance programs that help subsidize paid family leave expenses for employers, funded through payroll tax contributions from employees or employers. These programs aim to provide a public option for paid family leave and alleviate the financial burden on employers.
Implementing paid family leave in a business can be a manageable process, similar to adopting other employee benefits, though it may involve costs. Employers can choose to self-insure or share the costs with employees, and detailed policies should be established for requesting and granting leave.
The United States lags behind many developed nations in offering a national entitlement to paid family leave, leading to discussions about potential federal legislation to address this gap. Various proposed acts aim to establish paid family leave schemes through different approaches, from tax-funded insurance programs to social security benefits for new parents.
Arguments supporting widely available paid family leave focus on the benefits to employee productivity, leveling the playing field for employers, and aligning the U.S. with other developed nations. Conversely, concerns about costs, impacts on smaller businesses, and alternative solutions challenge the feasibility of a federal entitlement to paid family leave.
Although the push for universal paid family leave in the U.S. faces obstacles, experiences from other countries suggest that a national compassionate leave policy is achievable and could promote a healthier work-life balance for American workers.
