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Paid Family Leave on the Horizon A new study may be the impetus for expand family leave laws to include compensation. Researchers found that California’s paid family leave law had positive effects or no impact on employers’ ability to run their businesses. That result is contrary to concerns from various stakeholders that the 2004 law would cripple businesses because more employees would take advantage of the benefit. In “Leaves that Pay,” researchers Ruth Milkman and Eileen Applebaum say that employers reported that they saved costs on recruiting and hiring workers to replace those who quit their jobs to take care of a new child or sick family member. In addition, most employers were able to assign the work of leave takers to other employees. A few businesses did say they incurred additional costs to hire temporary workers or pay others overtime to fill the gaps. California’s paid leave law established a fund that requires a 1.2 percent contribution from all employees. Employers don’t contribute to the paid leave. In addition, the law does not provide job protection or guarantees, and it does not require the fringe benefits continue during the leave period. For more information on California’s leave law and the research report, visit http://irle.ucla.edu/publications/pdfs/LeavesThatPay_FINAL.pdf. WP |
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