Provides benefits for injury or sickness, pregnancy or family leave

The bill would also create a 12 week paid family leave program for new parents or workers who need to take time off to care for very sick family members. Eligible categories for paid family leave are parents who need time off for bonding with a baby born within 12 months or an adopted or foster child placed within 12 months or workers who need to care for a very ill child, spouse, parent, grandchild, grandparent, domestic partner, mother-in-law or father-in-law.

There are no exemptions - paid family leave would apply to all workers who are currently in the TDI system. Public sector employees represented by a union, however, would have to opt-in to this benefit.

TDI presently has a 7-day waiting period before coverage kicks in. This waiting period would apply to paid family leave as well.

The non-retaliatory language contained in the Workers' Compensation Law would be applicable to the new benefit.

Justification

Although the Federal Family and Medical Leave Act guarantees 12 weeks of unpaid leave to many workers to care for a sick relative or bond with a new child, most people can't afford to take unpaid time from work. In fact, a recent study showed that 77% of workers who declined the federal benefit did so because they could not withstand the loss of income. Paid family leave benefits would allow all workers to remain in the workforce and still receive some income while taking leave to care for their family.

The need for such leave grows more acute by the day - while the benefit is used primarily by new parents taking care of newborn babies, there is an important elder and medical emergency care component as well. People are living longer and requiring care in their later years while assisted living and nursing home options are growing fewer and more expensive. unanticipated medical emergencies can drive families into desperate financial situations - medical bills mount while people are out of work caring for their family despite the lack of income. For many workers, the birth of a child or an illness in the family forces them into a cycle of economic distress. Twenty five percent of all poverty spells begin with the birth of a child. Paid family and medical leave would enable workers to care for their family members without losing their economic stability.

Further, allowing new parents time from work to bond with a newly born or adopted or foster child is beneficial for the entire family in general and a child's development specifically. Despite spending the most on healthcare per capita of any nation in the world, the U.S. ranks 43rd in infant mortality; a major factor in reducing those rates is availability of paid family leave. Studies have shown that paid family leave lowers infant mortality - one study found that infant mortality drops by 25% with paid leave and that there isn't any significant impact in mortality rates from unpaid leave.

Paid family leave is a positive for employers, also research has suggested that employees are more productive and remain in jobs longer in companies that provide workplace flexibility. with or without access to paid family leave, workers must care for themselves and their families. When an employee leaves to care for a relative without paid leave, they are not likely to return, thus disrupting the company and requiring new hirings and training. Job loss means big costs for businesses in lost productivity, recruitment and training expenses. Experts estimate that replacing a salaried employee costs 150% of compensation. Studies show that 98% of employees return to work for the same employer after taking their longest family and medical leave. Businesses would profit from the higher productivity, increased worker morale and reduced absenteeism that comes from paid family leave.

History

New Bill. Similar legislation in 2008 (S. 8428, Morahan) died in the Rules Committee. In 2007, similar legislation (A.9245, Silver) passed the Assembly only. Also in 2007, similar legislation (S .4738, Morahan/A.7999, Nolan) died in committees. Finally, similar legislation (A.7130, Nolan) also died in committee in 2007 and 2008.

Cost

To be fully determined.

The paid family leave benefit will be fully employee-paid and - once fully phased in to 50% of AWW benefit level - is estimated to cost $0.45 a week per employee. The increase in TDI benefits to a maximum of 50% of AWW is estimated to cost an additional $1.69 per week in increased premiums. While it is important to note that many businesses in the state already offer TDI benefits far above the statutory minimum and thus won' t experience any significant cost increase (and may even save money as a result), there are some businesses still at the $170/week level. It is yet to be determined how the $1.69/week premium increase will be split between employees and employers.

Effective date

This act would take effect immediately; provided, however, that: (a) Sections one, two, three, three-a, three-b, four, five, six, seven, seven-a, seven-b, eight, nine, nine-a, ten, eleven and thirteen of this act shall take effect on January 1, 2010. (b) Paragraph a of subdivision 3 of section 211-a of the workers' compensation law, as added by section seven-b of this act allowing public employees to opt in to family care benefits prior to July 1, 2010 and subdivision 1 of section 212 of the workers' compensation law as amended by section eight of this act allowing public employers to opt in to family care benefits prior to July 1, 2010, shall take effect immediately. (c) Effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.