Monday, February 5, 2007

Unpaid Medical Leave to Get More Expensive? 

Washington State Proposal: Paid Leave

Categories:  Washington

Incrementalism is a key political tactic, and it's being used, once again, to promote a European-style social health and welfare system.

In 1993, the Federal Leave and Medical Act (FMLA) inserted the federal government, once again, into the workplace. It requires "large" companies to give employees 12 weeks of unpaid leave for medical purposes.

The U.S. would be moved towards a European system if the FMLA became, shall we say, tightened up. Reduce the number of employees that a company must have before it is considered "large." Increase the scope of what counts as "medical" grounds for a leave. Increase the length of the time period.

Or more significantly, make companies pay for the unpaid leave.

Paid leave is one item that is being discussed in Washington state, as Carl Gipson reports for the Washington Policy Center. Most employees (65 percent) already get some sort of payment when they go on medical leave, and even most companies not covered by the FMLA give unpaid leave.

But what of paid leave? It would impose compliance costs on business, and premium costs on all employees.

Further, it's unlikely that the costs will remain the same. One plan being proposed would pay out $250 a week. But as Gipson points out, "Realistically, the $250 maximum weekly benefit is not sufficient for many real-world scenarios. While a worker is on leave, any paid benefits are of help, but $250 per week is an unsustainable amount for many people – particularly for urban area residents. The concern lies in that, if the $250 benefit were implemented, it would not stay at $250 for very long. Lawmakers would be tempted to increase the maximum weekly benefit to model California's paid family leave bill, which allows a maximum weekly benefit of $840 at a cap of six weeks, with higher payroll taxes to match."



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