‘s paid family leave policy “has imposed minimal costs on employers,” suggests a new study released by the National Bureau of Economic Research, and may even have some advantages. The statewide policy, which took effect in January 2018 and is funded by an employee payroll tax, “does not appear to hurt employers,” study co-author Maya Rossin-Slater, an economist and researcher, told MarketWatch. Associate Professor at Stanford University School of Medicine. “It seems to improve their ease of managing worker absences, at least in the short term,” he added.
“In light of the pandemic, ‘it’s really important to understand how both workers and employers have been navigating this system where all of a sudden a lot of people have had to take time off.’ ”- Maya Rossin-Slater, Associate Professor, Stanford University School of Medicine
A key takeaway: “In general, most people do not believe that these policies are really going to be beneficial to employers. I think people are concerned that it is expensive, ”Rossin-Slater said. “The good news here is that they don’t seem to be expensive.” The United States is one of the only highly industrialized countries where there is no federal law that requires companies to provide paid family leave to employees. The District of Columbia and at least nine states – California, Colorado, Connecticut, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Washington – have enacted their own paid family and medical leave laws, according to a tally by the Kaiser family. . Foundation, a group of health experts. Meanwhile, retailers like Target TGT, -0.23%, Amazon AMZN, + 0.98%, and Walmart WMT, -0.27% have introduced paid family leave benefits in recent years. Starting in October, federal workers can also receive 12 weeks of paid family leave. In 2020, only 20% of private industry workers and 26% of state and local government workers had access to paid family leave, according to the Bureau of Labor Statistics. In response to COVID-19, federal lawmakers passed the Families First Coronavirus Response Act (FFCRA), which temporarily granted workers who had been on payroll for at least 30 days an additional 10 weeks of paid extended family and medical leave in two-thirds. your regular pay rate, in addition to providing emergency paid sick leave. Under President Biden‘s $ 1.9 billion American Rescue Plan, the refundable paid family leave or sick leave tax credits available through the FFCRA now expire on September 30. The study distributed by NBER was limited by virtue of the fact that New York’s policy went into effect in 2018, Rossin-Slater said. She and her co-authors were only able to do business for two years before the coronavirus hit. In light of the pandemic, “it is really important to understand how both workers and employers have been navigating this system where all of a sudden a lot of people have had to take time off,” he added, be it due to COVID. -19 itself, children did not attend school in person or other family care needs. “What we don’t know is, how have employers fared in places that actually have paid leave policies at the state level during this time, relative to, for example, employers in places that have not had paid leave policies? at the state level? “She said.” I think that’s a big and important question. “Don’t miss out: California’s paid leave law has cost new mothers an estimated $ 24,000 over a decade, research shows. Also read: Do Businesses Suffer By Offering Paid Parental Leave? These Economists Believe They Have Found An Answer