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What you need to know for 01/22/2017

Legislation to create paid family and medical leave announced

Legislation to create paid family and medical leave announced

U.S. Senator Kirsten Gillibrand, D-NY, and Albany Mayor Kathy Sheehan announced today federal legisl

U.S. Senator Kirsten Gillibrand, D-NY, and Albany Mayor Kathy Sheehan announced today federal legislation that would create paid family and medical leave.

The Family and Medical Insurance Leave (FAMILY) Act would establish a national paid family and medical leave insurance program.

The FAMILY Act would create an independent trust fund within the Social Security Administration to collect fees and provide benefits. This trust would be funded by employee and employer contributions of 0.2 percent of wages each, a self-sufficient program that would not add to the federal budget, according to Gillibrand.

“When a young parent needs time to care for a newborn child – it should never come down to an outdated policy that lets her boss decide how long it will take – and decide the fate of her career and her future along with it," Gillibrand said. "When any one of us – man or woman – needs time to care for a dying parent, we should not have to sacrifice our job and risk our future to do the right thing for our family. Choosing between your loved ones and your career and your future is a choice no one should have to make.”

The expected cost to the average worker would be similar to the expense of a cup of coffee a week, according to Gillibrand. Benefit levels, modeled on existing successful state programs in New Jersey and California, would equal 66 percent of an individual’s typical monthly wages up to a capped monthly amount that would be indexed for inflation.

“Senator Gillibrand’s legislation addresses a problem that almost every employee in our country faces at some point in their career. Paid family and medical leave is necessary to support and strengthen families and protect our economy,” Sheehan said. “In addition, the Senator’s bill creates a fair and responsible system for providing funding for this vital need.”

The current Family and Medical Leave law provides unpaid, job-protected leave for serious health-related events for only about half of the workforce. The other half don’t qualify for this unpaid leave, and many more cannot afford to take it because it is unpaid. Only 12 percent of workers in the U.S. have access to paid family leave through their employers, and less than 40 percent of workers have access to personal medical leave through employer-provided temporary disability insurance, according to Gillibrand.

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