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Ask your state reps about starting this in your state

James Hoyt



Date: Tue, 1 Oct 2002 04:40:01 -0700 (PDT)

Subject: INFO:  PAID FAMILY AND MEDICAL LEAVE: IS YOUR STATE


On September 23, California became the first state in the nation to offer
employees paid family leave.  The move has heard jeers  from employers, who
fear an onslaught of leave
requests, while  being cheered by employees, who otherwise may not have been
able  to afford to take unpaid family and medical leave.  The debate  rages
on, as similar legislation has been introduced in more than  half of the
states.  Here's how the inaugural program works.

In a nutshell, the California legislation establishes a Family Temporary
Disability Insurance (FTDI) program, within the State  Disability Insurance
(SDI) program, that provides six weeks of  wage replacement benefits (in a
12-month period) for employees
unable to work due to: the employee's own illness or injury; the  illness or
injury of a family member (i.e., child, spouse,  parent, domestic partner);
or the birth, adoption, or
placement  in foster care of a child.  Employees can receive 55% of their
wages during their absence, up to a maximum of $728 per week.   The program
becomes effective January 1, 2004, with benefits payable for leave beginning
on or after July 1, 2004.

The program is funded entirely by employee payroll deductions.   It will
cost employees an average of $27 a year, up to $70 per year for those
earning more than $72,000 annually.  Researchers estimate that employees'
payroll tax would increase by 0.2%,
making the total cost of the existing SDI 1.1% of salary and income.  It is
estimated that it will cost employees an average of $2.10 per month.  The
average estimated cost for
employers is  $2.10 per month per employee, with the total cost per employee
averaging $50 per year.

The law also allows employers to require employees to use up to two weeks of
accrued, but unused vacation time first.  Employees who are entitled to take
leave under the federal Family and Medical Leave Act (FMLA) and California's
Family
Rights Act  (CFRA) must take FTDI leave concurrently with leave taken under
the FMLA and CFRA.

Starting January 1, 2004, employers must provide a notice of employees'
disability insurance rights and benefits to each new employee hired on or
after January 1, and to each employee leaving work on or after July 1, 2004,
due to pregnancy, non- occupational illness or injury, or the need to
provide care for any sick or injured family member or new child who is
unable to  care for him/herself.

*Do The Pros Outweigh The Cons?*

Research indicates that California employers could save $89  million due to
increased employee retention and decreased  turnover.  Since the employer
share has been
eliminated, and, even though it applies to all companies no matter what the
size,  small employers do not have to guarantee job protection to  workers.
Thus, it seems that there's little risk or cost for employers associated
with the FTDI program.

The downside is, though, that no employer is exempt.  (Current state and
federal law apply to businesses with 50 or more employees.)  Another major
difference between FTDI leave and the federal Family and Medical Leave Act
or California's Family  Rights Act is that FTDI does not require employees
to work at  least 12 months or 1,250 hours.  Combined with the fact that
there is no limit on how many employees can take leave
at once, small employers especially could find themselves suddenly and
severely understaffed.

Whether the feared abuse of the system is reasonable, or an influx of leave
requests proves a hardship to employers, remains to be seen.  In the
meantime, employers are keeping their fingers crossed that the benefits of
higher retention and lower turnover
rates come to fruition.