Today, most working parents are eligible to receive 12 weeks of time off to care for a sick family member or to welcome a new child. However, many employees are unable to take advantage of these benefits because they cannot afford to go without a paycheck. By providing partial wage replacement to these workers, Paid Family Leave Insurance will enable many low-and moderate-income families to be at home during the crucial first months of a child's life, or to take care of a family member who has a life-threatening illness.
The insurance benefit is funded through a 2 cent per hour
payroll deduction from employee salaries (about $42 per year). This modest contribution
enables workers to be eligible for $300 per week, $1,800 per year. The deduction
is collected through existing payroll reporting methods that collect for the
Worker's Benefit Fund and TRImet. The Bureau of Labor and Industries perform
the benefit, enforcement, and administration. Start-up costs will be in the
form of a loan from the general fund and will be paid back within the biennium.
Many employees cannot afford unpaid family leave: 78% of employees who did not take family leave when they needed it reported they did so because they could not afford to go without a paycheck according to the U.S. Department of Labor.
Paid Family Leave is good for business: Employers benefit by increasing employee retention and decreasing costly employee turnover. Businesses also profit from higher productivity. |