Why doesn't the US have paid leave for new parents?

J Marzo
Jul 14, 2024
5 min read

Proposal for Permanent Family Leave for the Delivery or Adoption of a Child

Purpose: To establish a permanent family leave policy that provides parents with paid leave for the birth or adoption of a child, ensuring that families have the necessary time to bond and care for their new child without facing financial hardship.

Background: Currently, the United States does not have a comprehensive federal paid family leave policy. The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid leave, but this is not sufficient for many families. Paid family leave policies have been shown to improve health outcomes for children and parents, increase workforce participation, and provide economic security for families.

Problems with the Current System in the U.S.:

Unpaid Leave:

The FMLA only provides unpaid leave, which many families cannot afford to take. This means that parents often return to work sooner than is ideal for the health and well-being of both the child and the parent.
Source: U.S. Department of Labor

Limited Coverage:

The FMLA applies only to companies with 50 or more employees, leaving out a significant portion of the workforce employed by small businesses. As a result, many employees do not have access to even unpaid leave.
Source: National Partnership for Women & Families

Disparities in Access:

There are significant disparities in access to leave based on income, race, and occupation. Lower-income workers and workers of color are less likely to have access to any form of family leave, exacerbating existing inequalities.
Source: Center for American Progress

Health and Economic Consequences:

Lack of paid leave can lead to adverse health outcomes for both parents and children, including higher rates of maternal depression and lower rates of breastfeeding. Economically, families without paid leave often face financial hardship and increased stress.
Source: Pew Research Center

Objectives:

To provide 12 weeks of paid family leave for the birth or adoption of a child.
To ensure that all employees, regardless of the size of their employer, are eligible for paid family leave.
To promote gender equality by offering leave to all parents, including fathers and adoptive parents.
To support the health and well-being of families by allowing parents to bond with their new child without financial stress.

Policy Details:

Eligibility:

All employees who have been with their current employer for at least 6 months.
Includes full-time, part-time, and self-employed workers.

Duration and Compensation:

12 weeks of paid leave.
Compensation will be at least 66% of the employee's regular earnings, with a cap set to ensure fairness across different income levels.

Funding:

A combination of contributions from employers, employees, state governments, and the federal government.
Employer Contributions: Employers will contribute a percentage of payroll to a family leave fund.
Employee Contributions: Employees will contribute a small percentage of their wages to the family leave fund.
State Government Contributions: States will provide funding to support small businesses and ensure equitable distribution.
Federal Government Contributions: Federal subsidies will be provided to ensure the sustainability of the program and to assist in the initial setup.

Job Protection:

Employees on family leave will have their jobs protected, ensuring they can return to their same or equivalent position.

Flexibility:

Leave can be taken continuously or intermittently within the first year after the birth or adoption of a child.
Allows parents to use leave in a way that best suits their family’s needs.

Benefits:

For Families:

Provides essential bonding time for parents and children, which is critical for child development.
Reduces financial stress during a crucial period, promoting better mental and physical health for parents.

For Employers:

Increased employee retention and job satisfaction.
Attracts talent by offering competitive benefits.

For Society:

Healthier children and families contribute to overall societal well-being.
Reduces gender disparities in the workplace by supporting both parents in taking leave.

International Examples

Sweden:

Parental Leave: Sweden offers 480 days (approximately 16 months) of paid leave per child. Parents can share this leave, with each parent guaranteed at least 90 days.
Compensation: Parents receive approximately 80% of their salary for the first 390 days, with the remaining days compensated at a flat rate.
Flexibility: Leave can be taken until the child turns eight, allowing parents to spread out their time off as needed.
Source: Swedish Institute

Germany:

Parental Leave: German parents can take up to 14 months of parental leave, which can be divided between the parents.
Compensation: Parents receive 67% of their net income, up to a certain limit, for up to 14 months.
Flexibility: Parents can choose to work part-time while receiving parental allowance, and the leave can be taken until the child reaches three years of age.
Source: Federal Ministry for Family Affairs, Senior Citizens, Women and Youth

Canada:

Parental Leave: Canadian parents can take up to 18 months of parental leave. This includes maternity leave (up to 15 weeks) and parental leave (up to 40 weeks, which can be shared between parents).
Compensation: Parents can choose between standard benefits (up to 55% of average weekly earnings for 12 months) or extended benefits (33% of average weekly earnings for 18 months).
Flexibility: Parents can spread their leave over a longer period if they choose the extended benefits option.
Source: Government of Canada

Kenya:

Maternity Leave: Kenyan mothers are entitled to 3 months of paid maternity leave.
Paternity Leave: Fathers are entitled to 2 weeks of paid paternity leave.
Compensation: Both maternity and paternity leave are paid at 100% of the parent’s salary.
Source: Kenya Law Reports

Brazil:

Maternity Leave: Brazilian mothers are entitled to 120 days (approximately 17 weeks) of paid maternity leave.
Paternity Leave: Fathers are entitled to 5 days of paid leave, which can be extended to 20 days if the employer is part of the Citizen Company program.
Compensation: Maternity leave is paid at 100% of the mother’s salary.
Source: International Labour Organization (ILO)

Chile:

Maternity Leave: Chile provides 18 weeks (126 days) of paid maternity leave.
Parental Leave: Parents can share an additional 12 weeks of parental leave.
Compensation: During maternity leave, mothers receive 100% of their salary, up to a ceiling. Parental leave is also paid, with similar conditions.
Source: International Labour Organization (ILO)

Implementation

The Department of Labor will oversee the implementation and enforcement of the law.
A phased rollout starting with larger employers, moving to include smaller businesses and the self-employed.
Public awareness campaigns to educate employees and employers about their rights and responsibilities under the new law.

Conclusion

The Family Leave Act of 2024 aims to support families during one of the most important times in their lives. By providing paid family leave, we can ensure that all parents have the opportunity to care for and bond with their new child, leading to healthier families and a stronger society.

References

Family and Medical Leave Act (FMLA)
Paid Family Leave: Benefits, Costs, and Funding Options
The Case for Paid Family Leave