parental leave: from snapshots to plansthe snapshots – public sector: state governments california...
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C A I T L I N A Z H D E R I A N , E D . M . , S T A N F O R D U N I V E R S I T Y B A R B A R A R O B E R T S , P H . D . , M I C H I G A N S T A T E U N I V E R S I T Y
H U I H U A N G , M . A . , M I C H I G A N S T A T E U N I V E R S I T Y
Parental Leave: From Snapshots to Plans
2 2
Today’s Discussion… The US and the World [global context] (15 min) • How we compare • How others pay for it The Discourse [national social context] (15 min) • Academic • Popular/Political The Snapshots [who’s doing what where?] (15 min) • Public Sector • Private Sector • Post-secondary Sector
The Business Case [how do they do it?] (>10 min) • Why it pays off
Next steps? [discussion period] (20 min)
3 3
Definitions Paid Family Leave: A state-administered program or employer-provided benefit that fully or partially replaces the wages of workers who take leave to care for a seriously ill family member or new child.
Paid Medical Leave: A state-administered program or employer-provided benefit that fully or partially replaces the wages of workers on leave for medical reasons, including pregnancy. Paid medical leave may be provided through a state-administered system, called a State Disability Insurance (SDI) or Temporary Disability Insurance (TDI) program. Paid medical leave may also be available through privately purchased or employer-provided short-term disability insurance, or through employer-provided paid sick days or paid time off.
Family Medical Leave Act (FMLA): Provides up to 12 weeks of unpaid, job-protected leave to eligible workers.
F A M I L Y P A I D L E A V E
The US and the World
5 5
The US and the World Snapshot of the US and the World
• Global map of parental leave policy
• Paid parental leave in OECD countries
• How they pay for it (Cases: Denmark, Germany, Canada)
6 6
The US and the World
Paid parental leave: a hot topic
7 7
Norway 26-51.9
Australia 14-25.9
Switzerland 14-25.9
Denmark >=52
Netherlands 14-25.9
Germany >=52
Ireland 26-51.9
United States 0
Canada 26-51.9
New Zealand 14-25.9
10 top developed countries
The US and the World – paid maternity leave
8 8
The US and the World – paid paternity leave
Australia >=14
Switzerland 0
Denmark >=14
Netherlands <=3
Germany >=14
Ireland 0
United States 0
Canada >=14
New Zealand >=14
Norway >=14
10 top developed countries
9 9
Australia both
Switzerland mom
Denmark both
Netherlands both
Germany both
Ireland mom
United States neither
Canada both
New Zealand both
Norway both
10 top developed countries
The US and the World – paid parental leave
10 10
The US and the World
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
100.0
Bul
garia
G
reec
e U
nite
d K
ingd
om
Slov
ak R
epub
lic
Cro
atia
C
zech
Rep
ublic
Ire
land
Po
land
H
unga
ry
Italy
Es
toni
a C
hile
(a)
Den
mar
k C
ypru
s (c
,d,e
) Li
thua
nia
Mal
ta
Rom
ania
(a)
Finl
and
Can
ada
Aus
tria
(a)
Fran
ce (a
) Lu
xem
bour
g N
ethe
rland
s N
ew Z
eala
nd
Spai
n Tu
rkey
La
tvia
B
elgi
um
Slov
enia
G
erm
any
(a)
Isra
el (b
) Ja
pan
Switz
erla
nd
Icel
and
Nor
way
K
orea
M
exic
o Sw
eden
A
ustr
alia
Po
rtug
al
Uni
ted
Stat
es
Paid maternity leave in OECD countries, 2015
weeks of paid maternity leave average payment rate
Data from @Organization for Economic Cooperation and Development
11 11
The US and the World
0.0
10000.0
20000.0
30000.0
40000.0
Luxe
mbo
urg
Nor
way
Es
toni
a Sw
eden
Fi
nlan
d C
zech
Rep
ublic
D
enm
ark
Slov
enia
H
unga
ry
Slov
ak R
epub
lic
Icel
and
OEC
D A
vera
ge
Can
ada
Ger
man
y Ita
ly
Uni
ted
Kin
gdom
Fr
ance
Po
rtug
al
Bel
gium
Ja
pan
Spai
n Po
land
Sw
itzer
land
A
ustr
ia
Aus
tral
ia
Irela
nd
Gre
ece
Isra
el
Chi
le
New
Zea
land
K
orea
Tu
rkey
M
exic
o N
ethe
rland
s U
nite
d St
ates
Public expenditure on parental leaves per child born, 2011
US dollars
Data from @Organization for Economic Cooperation and Development
12 12
The US and the World – how they pay for it
Payroll taxes (most common):
Overall taxation rates + relative shares contributed by employers and
employees
a) Funds solely to family leave benefits
b) health and sickness funds
c) unemployment compensation funds
d) social insurance funds
ü costs are distributed throughout society
http://cepr.net/documents/publications/parental_2008_09.pdf
13 13
The US and the World – how they pay for it
Denmark
All family leave is accompanied by a financial benefit paid by the parents’ municipal
government, ranging from 30 percent to 90 percent of their usual salary.
If a worker’s collective agreement stipulates that the employer will pay full wages during maternity or paternity leave, the government does not provide the employee with the usual benefit but gives it to the employer as partial reimbursement.
18 wks: maternity leave 2 wks 32 wks: to be divided by parents
Paternity leave
52 wks
Birth date
4 wks
http://www.lisdatacenter.org/wp-content/uploads/parent-leave-details1.pdf
14 14
The US and the World – how they pay for it Germany
14 weeks of maternity leave and three years of shared parental leave
Mutterschaftsgeld (maternity)
• Insurance enrollment is available to women who are employed, receiving unemployment benefits, or in an educational program
• 6 weeks before the birth, and 8 weeks after at full pay, up to €13 ($13.78) per day
• If someone’s usual wage is above €13
($13.78) per day, the remainder is paid by her employer
Elternzeit (parental)
• Up to three years parental leave, combined by paid leave (Elterngeld) and unpaid leave
• Elterngeld: Funded by the federal tax system
• Families have 14 months of 67% pay to share, with 2 months reserved for the father.
• Parents may also claim the childrearing benefit at half the usual rate for twice the usual length
http://www.lisdatacenter.org/wp-content/uploads/parent-leave-details1.pdf
15 15
The US and the World – how they pay for it
Canada - employment insurance (EI)
• EI maternity benefits: offered to
biological mothers, including surrogate
mothers, who cannot work because they
are pregnant or have recently given birth
• EI parental benefits: parents who are
caring for a newborn or newly adopted
child or children
E I employed in
EI
meet the specific criteria
normal weekly earnings are reduced by
>40%
accumulated at least 600 hours of IE or have earned enough money as a self-employed
fisher
55% pay ~ $543/week Maternity -15 wks; parental - 35 wks
https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental.html
F A M I L Y P A I D L E A V E
The Discourse
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The Discourse – academic research on paid leave
Three major themes
Policy (economic perspective)
• Increased retention & job satisfaction
• Improved labor force attachment • Reduction in absenteeism • Access increases benefit utilization & allows flexibility to
handle life events • Impact on “lost wages” ($3 trillion as a result of unpaid
leave taken by caregivers) 6
Health Implications (new parents & caregivers)
• Leave type (e.g. new baby vs. sick parent) • Positive impact on mental & physical health of caregivers • Positive impact on health outcomes of young children,
rates of breastfeeding, and fathers’ involvement 7 • Increased compliance of preventive care
Access • Paid or job protected • Most common reason • Increase in leave taken to care of aging parent
18 18
The Discourse – popular & political
• Details access concerns, economic and health impacts
• Introduction of gender-neutral policies
(modern companies support modern families)
• “The Zuckerberg Effect”- generational shift
with fathers increased involvement • Highlighted post-leave support • Growing demand for eldercare • Expanded state and city policies • Inadequate federal policy proposals
Best Practices: Family Friendly Employers
1. Generous paid family care leave
2. Gender neutral policies for newborn leave
3. Promote flexible schedules
4. “Use it or lost it” paternity leave mandate
5. On-site quality and affordable child care
6. Babies-at-work policy (infants to 6 months)
7. Designated nursing spaces
8. Back up care program
9. Job protected career break for care
F A M I L Y P A I D L E A V E
The Snapshot
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The Snapshots
• Public Sector
> State Governments
> Working Mother’s top 10 nonprofit organizations
• Private Sector
> Working Mother’s “100 Best Companies”
• Post-secondary Sector
> Data summary of AAU universities
21 21
The Snapshots – Public Sector: state governments
California New Jersey Rhode Island Washington New York District of Columbia
Effective time 2004 (expanded 2016, effective
2018) 2009 January 2014 not yet determined January 2018 July 2020
Maximum length of paid parental leave 6 weeks 6 weeks 4 weeks 5 weeks
8 weeks in 2018, 10 weeks in 2019, 12
weeks in 2021 8 weeks
Weekly pay rate in 2017, 55% (up to $1173); beginning in
2018, 60% - 70% 66% (up to $633)
4.62 % of wages paid during the
highest quarter of worker’s base period,
up to $817
$250
up to 50% of state average wage in 2018, 55% in 2019, 60% in 2020, 67% in 2021
90% or [90%*min wage*40
+50%*(wage-150%*min wage*40)], ( up to
$1000)
Method to fund insurance system insurance system insurance system insurance system insurance system insurance system
Paid parental leave policies implemented by states
@ 2017 National Partnership for Women & Families 8
22 22
The Snapshots – Public Sector: state governments
California New Jersey Rhode Island Washington New York District of Columbia
Effective time 2004 (expanded 2016, effective 2018) 2009 January 2014 not yet determined January 2018 July 2020
Reasons for paid leave
1. Bonding with new child 2. Care for family member
with serious health condition
3. Care for own disability , includes pregnancy
1. Care for new child 2. Care for family
member with serious health condition 3. Care for own
disability, includes pregnancy
1. Bonding with new child
2. Care for family member with serious
health condition 3. Care for own
disability
Birth or adoption of new child
1. Bonding with new child 2. Care for family member
with serious health condition
3. Care for own disability 4. Qualifying exigency arising out of spouse,
domestic partner, child or parent
1. Bonding with new child
2. Care for family member with serious
health condition 3. Care for own serious
health condition
Definition of family member
Child, parent, spouse, domestic partner,
grandparent, grandchild, sibling and parent-in-law
Child, parent, spouse, domestic partner, civil
union partner
Child, parent, grandparent, spouse,
domestic partner
Not applicable; leave is for parents only
Child, parent, grandparent, grandchild, spouse,
domestic partner
Child, parent, spouse, domestic partner,
grandparent, sibling
Maximum length of paid parental leave 6 weeks 6 weeks 4 weeks 5 weeks 8 weeks in 2018, 10 weeks
in 2019, 12 weeks in 2021 8 weeks
Weekly pay ratein 2017, 55% (up to
$1173); beginning in 2018, 60% - 70%
66% (up to $633)
4.62 % of wages paid during the highest
quarter of worker’s base period, up to $817
$250
up to 50% of state average wage in 2018, 55% in
2019, 60% in 2020, 67% in 2021
90% or [90%*min wage*40
+50%*(wage-150%*min wage*40)], ( up to
$1000)
Method to fund insurance system entirely by employee by the employee only Not yet determined by the employee only by employer only
@ 2017 National Partnership for Women & Families
Paid parental leave policies implemented by states
23 23
THEN: In the late 1980s, only 5 of 30 Best Companies offer fully paid
maternity leave, ranging from 1 week to 8 weeks. None report offering paid
leave for new dads or adoptive parents.
NOW: All Best Companies offer fully paid maternity leave to full-time
employees, while a majority offer paid paternity and paid adoption leave.
“
”-- Working mother’s 100 best companies 2015 9
The Snapshots – Private Sector
24 24
The Snapshots – Public Sector : non profits
© 2017 Working Mother. A Bonnier Corporation Company 10
Top 10 Nonprofit Companies for Executive Women
1, 1, 1
Weeks of fully paid maternity leave
Weeks of fully paid paternity leave
Weeks of fully paid leave for adoptive parents
6, 4, 4 1
6, 4, 4 6 7, 4, 4 3, 3, 3
1, 1, 1
25 25
Top 100 companies for executive moms
© 2017 Working Mother. A Bonnier Corporation Company 11
26 26
Association of American Universities (AAU)
Three types of AAU universities:
Offer paid parental leave and pay for it
Offer paid parental leave supported and
paid by states
Do not offer paid parental leave
The Snapshots – Higher Education
Data collected from human resources or WorkLife websites of AAU universities.
27 27
Offer to faculty only,
9
Offer to staff only, 4
Offer to both, 12
Is paid parental leave offered to both faculty and staff?
The Snapshots – Higher Education
Association of American Universities (AAU)
Classified by demographic groups:
Offer to faculty and staff
Offer to faculty only
Offer to staff only In addition to paid parental leave, almost all universities offer paid teaching relief policies to faculty
Data collected from human resources or WorkLife websites of AAU universities.
28 28
3.63 2.37 3.08 2.45 1.49 1.22 1.39 1.18 0
1
2
3
4
moms (birth) dads (birth) primary caregiver (adoption)
secondary caregiver (adoption)
Average weeks of paid parental leave offered by AAU universities without state policies
average weeks for faculty average weeks for staff
AAU universities that offer paid parental leave
Carnegie Mellon University Michigan State University
University of Maryland, College Park Tulane University
Case Western Reserve University University of Minnesota
Washington University in St. Louis Brown University
Indiana University Bloomington Northwestern University
Purdue University The Pennsylvania State University
The University of Arizona Cornell University
University of Missouri Harvard University
Duke University University of Illinois at Urbana-Champaign
Yale University Emory University
New York University University of Virginia
The Ohio State University University of Pennsylvania
Vanderbilt University Massachusetts Institute of Technology
The Snapshots – Higher Education
Data collected from human resources or WorkLife websites of AAU universities.
F A M I L Y P A I D L E A V E
The Business Case
30 30
The Business Case – Why it pays off
Improves labor force attachment
• Improves employee motivation- positive effect on long-term productivity & engagement • Increases worker retention & reduces turnover • Women who reported taking paid leave after the birth of a child were more likely to be
working 9 to 12 months later compared to women who did not take leave 12 • First-time mothers with access to paid maternity leave are more likely to return to work
(mothers are the fastest-growing segment of U.S. labor force with 70% working outside the home) 13
• Paid family and medical leave policies increase the use of leave for some workers 14
Improves business profitability
• Reduced significant excess costs associated with replacing employees • After CA & NJ enacted PFL benefits, 91% of businesses claimed positive effect on
profitability or no effect at all 15
• Paid leave insurance programs funded though payroll taxes offers greater flexibility & no initial investment
Positive economic impact • Increased labor force resulting in higher levels of output & gender equality in labor force
participation • Reduced spending on public assistance • Consider the value of unpaid labor
Improved health of families
• Decrease of infant and young children morbidity and mortality • Reduction of medical costs & health insurance claims • Increases well-baby care, vaccination rates, and breastfeeding duration • Greater paternal engagement in caregiving • Contributes to the healthy development of infants and toddlers and improves the
outcomes for the entire family, including parents and caregivers
31 31
The Business Case – Small business employers • Support establishing a national paid family and
medical leave program • 70% believe it’s important to establish a
federal program to guarantee access to paid family and medical leave 16
• Majority support the FAMILY Act 17
• Legislation that would establish a national paid family and medical leave insurance program to ensure workers up to 12 weeks of partial income
• Support state-administered paid family and
medical leave insurance programs • 61% support programs funded by employer/
employee contributions, with each contributing approx. two-tenths of 1% of an employee’s wages 18
• 7 in 10 small businesses have some type of family leave policy (formal or informal) in place 19
Majority of small businesses offer parental leave with full or partial pay
Small Business Majority and Center for American Progress
32 32
The Business Case – The reality moving forward
• Benefits of paid family leave to individuals, to business, and to society are well documented • Most workers have or will have caregiver responsibilities at some point in their career life
cycle that will require them to take leave • Development of a coherent approach to data collection & research about paid family leave
is much needed • Assessment of family leave coverage & improved federal data collection would make it
easier to quantify gaps and access the costs and benefits of paid and unpaid leave • Further analysis will help design effective policies at state and federal levels
• Comprehensive legislation is needed to build a more productive workforce and stronger economy
P A I D F A M I L Y L E A V E
Next Steps
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Resources 1. 2016 WORLD Policy Analysis Center
2. 2016 WORLD Policy Analysis Center
3. Organization for Economic Cooperation and Development
4. 2017 National Partnership for Women & Families
5. 2017 Working Mother. A Bonnier Corporation Company
6. 2016 Family Caregiver Alliance
7. McBrayer, D. R.. “Paid Family and Medical Leave: Research and
Lessons for the District of Columbia.”
8. 2017 National Partnership for Women & Families
9. 2017 Working Mother. A Bonnier Corporation Company
10. 2017 Working Mother. A Bonnier Corporation Company
11. 2017 Working Mother. A Bonnier Corporation Company
12. Shepard-Banigan, M., and JF Bell. “Paid Leave Benefits among
a National Sample of Working Mothers with Infants in the United
States.”
13. Galinsky, E., and Weisberg, A. ”Family Matters: The Business
Case For Investing in the Transition to Parenthood.”
14. Gomby, Deanna, and Dow-Jane Pei. “Newborn Family Leave:
Effects on Children, Parents, and Business.”
15. McBrayer, D. R.. “Paid Family and Medical Leave: Research and
Lessons for the District of Columbia.”
16. Gomby, Deanna, and Dow-Jane Pei. “Newborn Family Leave:
Effects on Children, Parents, and Business.”
17. Small Business Majority and Center for American Progress.
“Small Businesses Support Paid Family Leave Programs.”
18. Small Business Majority and Center for American Progress.
“Small Businesses Support Paid Family Leave Programs.”
19. Small Business Majority and Center for American Progress.
“Small Businesses Support Paid Family Leave Programs.”